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Put Sales 2014

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December 18, 2013 – Comments (27) | RELATED TICKERS: P , UTSI

I started a post on the selling of puts here:

http://caps.fool.com/Blogs/selling-puts/884307

I am done for 2013 and now carry forward to 2014.  I so post to give ideas to others for the love of the game.  I will continue to post 2014 here unless there is no interest.  So if you wish me to continue please rec.  If no interest I will stop. And Harry I will hunt you down and smack you silly if you didn't buy BBEP when I told you to;p

27 Comments – Post Your Own

#1) On December 19, 2013 at 1:57 AM, jiltin (32.07) wrote:

Presently, I stopped on options until I get more knowledge. However, just posting to know more about puts sale.

 I see BBEP is almost flat for three years paying dividend. That is good for selling puts based on time decay approach.

However, this is not great for growth point of view.

In other approch, if I say this has 1.97B market cap. They make break through and it grows 19.7B in 2 years. (My Blind argument). 

In this case selling puts is not good, but buying stocks is good option.

Just posted for debate/analysis purpose.  

 

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#2) On December 19, 2013 at 12:38 PM, awallejr (77.67) wrote:

When selling puts I generally have 4 different motives.

First, I like to sell puts on stocks I really do want to buy but want it at a discount.  I could simply wait but it may never fall to my target price in which case I keep chasing.  XON and FIG are 2 examples.  I have the money set aside to buy them next year if they stay below the strike price.

Second,  I want to just gamble off high beta stocks issuing very high premiums. SDRL and QCOR and MTL are exmaples. 

Third, I like certain stocks and think they will continue to rise in value but I really don't want to own the shares but I do want to profit to some degree if I am right.  INTC and CSCO are examples

Finally,  I am looking to basically increase income off stocks I do own which are low beta or slow but steady growers.  BBEP, ACAS, XRX and KKR are examples.  And actually Jiltin I was telling people to buy BBEP early July of this year when stock got short attacked.  Had you done so that is a 33% return for less than 5 months.

No one need choose my picks.  There are plenty of choices out there. I am just trying to show the different "roles" that can be filled and giving others some ideas.

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#3) On December 20, 2013 at 12:00 AM, jiltin (32.07) wrote:

Few times, I played options with very minor $450 profit. It was 100% gain in 30 days, but gave me some degree of fear and risk of option play. Hence, I stopped and simulating that experience.

I took some of the thumps up pick in my google portfolio for monitoring purpose.

Yes, I am not going to pick any stocks, including the caps thumps up, unless I am convinced.

Thanks for sharing your experience. 

 

 

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#4) On December 21, 2013 at 2:50 AM, Valyooo (99.47) wrote:

I sell puts for the same reasons you listed. However, I don't really have a method for picking strikes, and much less, which dates to sell. How do you decide?

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#5) On December 21, 2013 at 12:31 PM, awallejr (77.67) wrote:

I look for at where the stock is currently selling for and as far out as I can go in order to get the highest premium I can.  Others, like QCOR I picked really low strike prices but which still have a high premium. The 2014 Jan 37 ones I suggested and the  2014 April 40s are examples. 

When I sold the 2014 June 55s, the stock was trading over 65.  So as long as stock stays above $42 I won't lose.  But by then we will have 2 new earnings reports which I expect to be stellar.  But there is always the short attack to deal with.  However, if no NEW news by then shorts might face a nasty squeeze if earnings do blow-out the numbers.

As for the INTC Jan 2016 $20 puts you might want to profit take since it is up over 37% in less than 3 months.  I will continue to let mine ride.

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#6) On December 23, 2013 at 8:55 PM, awallejr (77.67) wrote:

If anyone listened to my KKR put suggestion you might want to profit take.  Received 5.20 can close for 2.20-2.30.  A 55ish% profit.  I plan on holding since I see this selling in the 30s by expiration.  It is a good stock to own as well even at $25.  Dollar cost average in.

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#7) On January 02, 2014 at 7:40 PM, GirlsUnder30 (85.34) wrote:

KKR is definitely going to do ...ahem...'well' off the deal with XCO. Chesapeake lost a big long term opportunity with that deal. What do you guys think Chesapeake will do? Have you guys read:

http://caps.fool.com/Blogs/checking-up-on-chesapeake/910021 

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#8) On January 02, 2014 at 8:36 PM, awallejr (77.67) wrote:

I don't really follow that one.

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#9) On January 13, 2014 at 11:45 AM, awallejr (77.67) wrote:

Sold to open 5 UAN August 2014 $17.50 puts for $2.20.  I actually want to get put this so we shall see.

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#10) On January 14, 2014 at 11:36 AM, awallejr (77.67) wrote:

Bought 20 POT January 28 2015 puts for 1.16 to close out the sale.  Sold 20 for 3.85 so $7,700 - 2,320 = $5,380 profit.

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#11) On January 14, 2014 at 11:44 AM, awallejr (77.67) wrote:

Sold to open 10 T Jan $35 2015 puts for 4.13.  I don't mind getting put the stock.

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#12) On January 22, 2014 at 9:19 PM, awallejr (77.67) wrote:

If anyone actually listened to me and sold the Fig June 2014 $9 puts for 1.30, you can probably close them for .80 giving you over a 60% profit.  Personally I am holding to the end because I am hoping to get put the stock.

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#13) On February 06, 2014 at 2:47 PM, awallejr (77.67) wrote:

Sold to open 10 To Jan $35 2015 puts for $7.10. 

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#14) On February 21, 2014 at 1:59 PM, awallejr (77.67) wrote:

Had sold to open 20 Jan 2015 $17 pre-WWAV split DF puts for $3.  Bought to close them for .50.  $6,000-$1,000= $5,000 profit.

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#15) On February 24, 2014 at 12:00 PM, awallejr (77.67) wrote:

Oops that is T stock re #13.

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#16) On February 26, 2014 at 10:30 AM, awallejr (77.67) wrote:

Sold to open 10 SDRL January 33 2016 puts received $7.19.

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#17) On February 26, 2014 at 11:42 AM, awallejr (77.67) wrote:

Bought to close 10 XON puts for.52.  Sold for 2.56 so 2560-520=$2040 profit.

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#18) On March 05, 2014 at 12:03 PM, awallejr (77.67) wrote:

Sold to open 10 QCOR Jan 2015 $40 puts, received $8.

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#19) On March 07, 2014 at 5:27 PM, awallejr (77.67) wrote:

Bought to close 5 August 17.50 2014 at .50.  Had received $2.20 so $1,100 - $250= $850.  I did wind up buying a few hundred shares of UAN common.

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#20) On March 07, 2014 at 5:27 PM, awallejr (77.67) wrote:

those puts in #19 were for UAN.

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#21) On April 05, 2014 at 12:32 PM, awallejr (77.67) wrote:

Bought to close the T puts I sold in #13 at $4.50.  Just a correction it was for 2016 not 2015.  7,190-4,500= $2,690.  Could have held longer but I want to free up margin.

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#22) On April 07, 2014 at 2:26 PM, awallejr (77.67) wrote:

Bought to close 10 June 50 WPZ puts.  Had received 4.32 and closed for 1.10.  $4,320 - $1,100 = $3,220 profit.

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#23) On May 07, 2014 at 1:30 PM, awallejr (77.67) wrote:

Sold to open 20 Dec 8 2014  AINV puts for .80.  Not sure what I will do with FIG come June, either roll it over, just get put the shares or close them out.  I was a bit disappointed with earnings.

As for AINV I am surprised why no love for the stock right now.  You had a lot of insider buying in the mid $8 range.  Insiders sell for many reasons but only buy for one.  Earnings come May 20.  Hopefully they will deliver better than what FIG did.

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#24) On May 09, 2014 at 2:18 PM, awallejr (77.67) wrote:

Sold to open 10 Jan 2016 $17.50  XON puts for $7.  Made money off this before as per #17 above.  This stock was on a roller coaster having peaked near $37 and crashing along with the rest of the crowd since.  Since this is a 2016 bet short term doesn't concern me but I fully expect this stock to kick in soon enough.

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#25) On May 09, 2014 at 3:16 PM, awallejr (77.67) wrote:

Had to sell 10 more of those XON puts.  The premium is just too sweet.  However I had to free up margin because of my no more than 50% margin rule so. 

I Bought to close 10 T 35 Jan 2015 puts for 1.78.  So per #11  4,130 - 1,718 = +2, 412.

I bought to close 10 CSCO 20 Jan 2016 for 1.70.  So received 2,900 - 1700 =  +1,200.

I used the net proceeds to help buy 100 shares of CAG, 100 shares of SDRL and 500 shares of AINV.

Total profit year to date = 22,792.

 

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#26) On May 09, 2014 at 3:30 PM, awallejr (77.67) wrote:

Oops noticed I didn't mention the April 40 QCOR puts.  I bought to close 5 at .05.  Had sold for 6.45. So 3,225 - 25 = +3,200.

Total year to date profit of $25,992.

I really do hope at least one person has been taking my advice.  As they say the proof is in the pudding.  Right now the only 2 put plays I have concerns with is MTL (man I hate Putin) and FIG.  But all the rest are solid gains. 

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#27) On May 13, 2014 at 5:59 PM, awallejr (77.67) wrote:

Moved this thread to here:

 http://caps.fool.com/Blogs/put-sales-2014-continued/966456

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