Master Income Update -
Friday, 29 October 2010
Hello there,
These Friday’s seem to pop up every other day. And that’s how we like
it!!
Making money really is kind of routine and boring if you can admit
that outloud. Just like the guy who escaped Shawshank prison with
the rockhammer. All it took for his freedom was two concepts:
pressure & time.
And that’s what we’re about too.
I am rolling out the rest of my BIDU today into next week’s 110′s. As
it shapes up, the majority of my sold calls for next week are at the
110 strike, and one at the 115 strike (those were sold when BIDU was
in the $112′s)
I already have my premiums sold on FAS and FAZ (did that yesterday),
and with the close and expiration of Friday – the old set of calls
shrinks to nothing, and the next week calls are off to a great
start of weekend time decay.
CSTR is sure ripping it up out there, that’s Coinstar, who owns
Redbox. The stock is jolting to the upside on huge volume and you
can tell it has shares of Netflix quaking a little bit. You gotta
love competition.
The elections around the corner (next Tuesday) should be very interesting.
Frankly, I’m pretty excited to have that date in the rearview mirror,
only as far as trading the markets are concerned. Enough already!!
Anyway – hoping this finds you well..
–P
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Master Income Update -
Thursday, 28 October 2010
Good morning,
Well, it’s barely good morning as the morning time ends in approx 1
minute from now.
I hope you liked the Wed. webinar yesterday, we’ve gotten a lot of
good feedback from it, it’s just nice to keep some reminders, pointers,
etc in mind as we roll through time here together.
With new weeklies on tap, I’ve been a busy dude this morning. Let
me tell you what I’m doing:
I am selling next week’s (called Nov Week 1), 170 calls on AMZN while
leaving my short (this week) AMZN 170 calls in place. This is an
overwrite where tomorrow these Oct Week 5 170 calls are almost
certain to expire worthless.
I am selling calls to open for Nov Week 1 calls on FAZ at the $13
strike price. This is an overwrite too.
I am selling calls to open for Nov Week 1 calls on FAS at the $22
strike price. This week’s $23′s will expire worthless manana.
I am doing a roll in BIDU on approx 15% of my position. I am rolling
out this week’s 105 calls and selling next week’s 110 calls. BIDU
is around $111 and $112 right here.
I’ll be doing all the remaining adjustments tomorrow.
One thing that stood out this morning is the premium for next week’s
at the money options on FAS!
Look for yesterday’s session to be posted up soon inside the member’s
area on MIT.
Talk soon,
–Preston
Master Income Update -
Tuesday, 26 October 2010
Good morning,
With a sorta red tape (on and off again red tape) this morning, BIDU
and a few other names are really bucking this. That’s great to see.
BIDU now trades north of $111 -and it has me wanting more exposure to
it. From time to time what I like to do (especially with the new
weekly options!) is to become a put seller, which brings in new
income, and the intent behind it is to either make money, or, get
more stock put to me.
By the way, what would be the intent of having new BIDU stock put
to me? Of course, to turn around and sell weekly premium against it!
So it starts boiling down to 6′s (6 one way, a half a dozen the other).
So this morning I’m selling this week’s (October Week 5) 110 puts on
BIDU.
RIMM is making a compelling move, knocking on the door of $55 bucks.
There’s also CECO, a part of the abysmal for-profit education school
system. It has been beaten all the way down the ugly tree with the
ugly stick (same with APOL, STRA, ESI…which are other names in this
space as they like to call it).
Anyway – CECO put in the sunrise demise a few weeks back – and recently
it’s been on the move a bit. In fact, it’s taken out the high on the
day CECO hit it’s 52-week catastrophic bottom.
The point here is there’s a set-up. They have earnings set for Nov 2nd,
there’s $1-increment strike prices – and premiums are rich.
CECO is around $17 bucks so it might be at a price that’s affordable
for a certain account.
Just pointing it out!
Hope this finds you well today!
–P
Oh, a big P.S.
If you weren’t able to see it or get to it, etc – here’s the link to
the recorded video of myself and Jon Najarian from last Thursday:
http://clicks.aweber.com/y/ct/?l=DzBmR&m=1awPcKsIpTbj40&b=Oc9D3eWH95VW18Ay3qEkLg
The video kind of reminds of internet video from like 10 years ago, but
the content and what we covered is BITCHIN’ and very, very well worth
the viewing!! It’s around an hour and has a special context of viewing
it before Nov 2nd (the election).
I can’t do it justice – but do yourself a favor and watch this ASAP!
–P
Master Income Update -
Monday, 25 October 2010
Good morning!
With a busy few days in Chicago last week – and then having my
return travel schedule invade my normal Friday trading…it’s great
being home! Let’s just put it that way!
I was contemplating on my flight home how all the weekly stuff adds
up over time. Like all the overwriting, and time decaying over
the weekends, etc.
I didn’t have time to do that on both my FAS and FAZ positions -and
you can really see the difference trading these this morning (like
I have been doing) vs. the capture on the Friday!
Some of things I’m doing this morning are:
Adjusting approx 20% of my protective puts on BIDU, selling the Jan
85 puts and then buying March 95 puts in their place. This takes
my lowest protective strike price and now makes it the highest
protective strike price (and moves it out another 2 months to boot).
Over on FAS, I am selling this week’s (Week 5 for October) 23 calls
for like. On FAZ I am selling this week’s $13 calls (for only like
$.09 cents!).
One of the most heated up stocks out there today is SOHU. SOHU is
busting up and ripping through a 2-year high today. A very, very
compelling move on equally compelling volume.
I looked up a trade to do on SOHU – and there IS money to be made on
it…of course it doesn’t have weekly options – so the money is limited.
In fact, when you compare what weeklies do to your bottom line, and
when you figure your capital is your capital and that to maximize it
is the bottom line goal – it almost puts blinders on us to every
other trading opportunity.
Here and there I will trade things that don’t have weeklies…but it
is getting rarer and rarer!
Just for the sake of it – a spread on SOHU looks compelling, selling
the Nov 75 puts and buying the Nov 70 or 65 puts. This puts money
in your pocket and time decay on your side.
Anyway – I hope this finds you well this morning!
Over and out,
–P
Karson Keith jumping if for Preston today. He is on a flight back
from Chicago at the moment.
I am going to fill you in on what we did.
We rolled the BIDU 100 calls to next weeks 110′s. And the 105 calls
to next weeks 105′s.
Rolled AMZN 160 Calls to next weeks 170′s.
On FAZ we rolled the 13 puts out to next weeks 13′s.
Nothing to crazy here, just some maintenance. I will keep you
posted with any new moves.
I hope this finds you well.
–
-Karson Keith
Master Income Update-
Thursday, Oct 21st, 2010
Hey there!
I’m hanging out here in Chicago and we’re about to head over to
the trading floor and get ready for this killer pre-election webcast/
webinar.
You can join in on the fun by clicking on this link right here:
http://clicks.aweber.com/y/ct/?l=DzBmR&m=1avDH4d53Tbj40&b=BaWGGpGAnDfqYPyrNOLSlw
I’m super excited about it and wanted to shout this out one more
time before we do it.
It’s today at 4:00 pm Central time (it will run approx 1 hour).
AMZN and BIDU announce results after the close, and of course brand
new weekly options were printed this morning for next week.
I will be doing some rolling come tomorrow (and some overwriting
for good measure) so stay tuned for tomorrow’s update.
Over and out!
–P
Master Income Update -
Tuesday, 19 October 2010
Karson Keith here, just jumping in for the Pirate today.
Well what do you know, AAPL can move down!
AAPL made a move down as they reported earnings after the close
last night. I guess Apple’s CFO said that they could have sold
even more iPhones if supply could accommodate. The CFO also said
he sees Q1 gross margin around 36 percent and that iTunes sales
were above $1 billion in Q4. AAPL is on track ship in 43.7 million
iPads in 2011 and 63.3 million in 2012. That’s millions! Crazy!
What blows my mind is the stock moved down on this news! I guess
they fell short of selling the 1 Billion they were looking for.
We are not making any new adjustments so far today.
I hope this finds you well.
–
-Karson Keith
-The Pirate’s Office-
Master Income Update -
Monday, 18 October 2010
Good afternoon,
The big dog, the king-kahuna, the baddest tail-swinging T-Rex in the
jungle announces their results (forecasts, guidance, etc) after the
close today…in about 30 minutes from right now.
Google got their numbers out of the way last Thursday – and now it’s
Apple’s turn. And I can’t imagine Apple not announcing some killer
numbers and having their time in the sun too.
Anyway – Amazon and BIDU announce this week too (Oct 21st) – and BIDU
is jumping up higher today on huge volume, on really no news.
Of course these two will react on what Apple comes out and says being
it carries the largest stick out of anything tech and consumer out
there.
It’s sure creating incredibly juicy premiums out there!
I’m sticking with my current positions how they are.
Probably like you, I am so excited to see what Apple turns in today!
Over and out for now,
–P
Master Income Update -
Friday, 15th October 2010
Good morning!
Well Google is out and on the prowl with it’s sharp and fangy looking
earnings and forecast.
(when you think of it…this is like a $55 stock being up $5 bucks
after some good numbers/earnings…but when a stock is $550, a $50
jump looks like the impossible feat!)
Anyway – I am rolling out the other half of my AMZN here, but instead
of at the $155 strike, I’m rolling the remaining half up to the $160
strike…just look at that premium will ya?!!
On BIDU, it’s even more awesome (the premium for next week).
The 105 calls on BIDU will expire worthless today, so right away,
right now, I am selling new, next week, calls replacing these.
I am going to go for next week’s 105 calls again…and will likely
mix in some 100′s too. The BIDU 100 calls for next week (at the
money) are $5 bucks! That’s 5% on a $100 stock…FOR ONE WEEK!
That’s amazing.
With Bernanke’s comments this morning, the banks aren’t trading well
in their wake.
This has FAZ pushing back up with FAS stumbling. (FAS was leading
the week up until a few days ago!)
I’m selling brand new 21 calls on FAS for next week. The 22.675 calls
I sold for this week will be expiring worthless today. Selling the
new 21 calls today will give us the weekend effect…this is an
overwrite for the day…but a slam-dunk/safe one.
I already mentioned AMZN and BIDU..
Man, we’re also doing some fun stuff on expiration Friday right now
on what I call Friday windfalls. But as you can see…Weekly Option
Windfalls is right around the corner!! My staff is assembling all
of the packaging, etc – and early next week you can practically steal
this!!
So be on the lookout for the details. I’m so excited about this I
can’t stand it!!
(talk about a busy week, I’m going to be in Chicago week next week
too doing a pre-election sitdown with Dr J. In case you haven’t
registered for this…here’s that link again:
http://clicks.aweber.com/y/ct/?l=DzBmR&m=1bTBm4486Tbj40&b=G40VG8LFFSf4Z2JyvvkBPg
–Pirate
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