We are getting pummled today with a blizzard of sorts, the snow is
coming down sideways (if that makes any sense). It’s the kind of
day that you don’t want to go outside because you are afraid the
storm might just take you away. The market is not much different,
okay so I wouldn’t call it a crazy storm or anything but this whole
thing with Korea is annoying. I usually love to stay inside and
hunt down a trade or two but so far I have come up with nothing.
I have to admit it is days like this when I miss trading FAZ. Sure
I have the puts working for me on FAS, but it just doesn’t feel
the same for some reason.
I will keep you posted on any new moves.
I hope this finds you well.
Preston’s father passed away last night so he is going to be out of touch for the time being. He appreciates all of your condolences.
I will be at the helm until he is back. But never fear, I will keep you in the loop with everything we are doing.
This is the first week I have had in a long time that I have not had some nice premiums melting away on FAZ. I am very annoyed that they took the weekly options away from FAZ as it has treated me well. Over time you tend to favor one particular stock and FAZ just so happens to be mine. Oh well, time to move on. Puts on FAS is a great alternative.
No new trades today.
Have a great day.
Master Income Update
Friday, 19 November 2010
Hello!
Well, here on expiration Friday – I am overwriting my entire position
on BIDU, selling next week’s (Nov Week 4) 110 calls.
I am also over-selling/over-writing on FAS, selling next week’s 23
calls. Incidentally, I am also rolling out some short puts on FAS..
buying to close today’s expiring 25 puts and selling next week’s 23
puts. Good grief…it’s occurred to me that I can do this every single
week for the rest of my freaking life….premium, premium and more
premium!!
Anyway – there is SO MUCH MORE I’m doing over in the weekly options
world…tons of same-day Friday spreads…multiple trades based on
the crowds reaction to earnings and events (where you do a credit
spread, where it expires that same week…and lots of other shizzle).
We’ve just made this all available to absolutely everyone in my list
universe.
If you haven’t checked it out yet – you should really give Lori a call.
We’ve got some really cool stuff on the web, with proof videos, etc,
but the best thing to do would be to call Lori at: 801-733-4190 -
she can get you hooked up to this – and it will literally change
your life!!! I don’t say that idley!!!
Hope this finds you well today… –P
Master Income Update -
Thursday, 18 November 2010
Good morning,
Well there’s a few things going on out there today!
First, an announcement over in the weekly options world…
FAZ (the counterpart to FAS) has been taken off weekly options. FAS
still has them -but for some reason FAZ got taken off.
That pretty much ends the opportunity to do anything with FAZ with
options, trading, income, etc. So I will be closing out of this one
(not today, as time decay is still working on the current weekly
position).
Over on FAS, I will likely buy some 4 month out protective puts, and
continue to write weekly calls and also sell weekly puts, but I’ll let
you know exactly what I do when I do it.
Yesterday I did a trade on WYNN. Tomorrow is their ex-dividend date
on paying out their $8 bonus dividend (the actual day you receive
this cash is on Dec 7th).
I’ve had subscribers call investor relations and confirm all of this.
The trade I decided to do (which can be done today too) is a collar.
since you have to own stock to be entitled to the dividend, the collar
consists of owning stock, selling calls AND buying puts.
When the stock was around $107 and change yesterday – I sold December
110 calls and bought Dec 105 puts.
The confusing thing is over on the options side of things. A $6
profit just doesn’t exist out there! (the stock will drop by $8
when this ex-date happens) – however the way this collar was priced
yesterday (approx $4 for the calls, $4 for those puts, which kind of
wipes eachother out…making the maximum loss on the stock the
difference between $107 and $105…but then an $8 dividend comes in
for that $6 profit I’m talking about).
I’ve done a bunch of looking around – and from the looks of it, somehow
the option pricing is fanagled to account for this $8 drop.
I’m still kind of confused about it – but hell, I did the trade anyway
just so I can have a front row seat to it!!
My aim is solely for this $8 and then protecting my hiney in the process.
It looks like a winner to me so far.
Moving on…
You gotta like the market’s bounce today!! I am writing new calls on
AMZN for next week, selling next week’s $165 calls (I anticipate my
current week’s 170 calls will expire worthless tomorrow).
I am also starting to write next week’s calls on BIDU with the nice
bounce in this stock too!
Anyway – hope this finds you well, –P
Master Income Update -
Monday, 15 November 2010
Hello,
Hope you’re doing great. There’s a few things I’m doing here on Monday
that I didn’t get to last Friday.
I don’t have a full set of calls sold on BIDU, so I am selling some
Nov 110 calls this morning.
I also didn’t have new calls sold on FAS, so I am doing that now,
selling 100% of the calls of the Nov 24 calls.
I also had more call selling to do on FAZ (I had 2,000 more shares
put to me) – so I am selling FAZ Nov 11 calls on it.
I have to run, but wanted to update you on current positions.
–P
Master Income Update -
Thursday, 11 November 2010
Hey there,
Let me tell you some things I’m doing:
I’m adjusting approx 15% of my BIDU puts, moving them up from the
March 90 puts to the March 100 puts.
I am doing some overwriting in the BIDU name on the call side. BIDU
has really been a shining star of green today, given most tech stocks
are trading alongside the bellweather CSCO and it’s fresh earnings
forecast and guidance.
BIDU doesn’t seem to care and trades at $114+. This has me selling
new Nov 115 calls on BIDU that expire next week (next Friday is
expiration Friday for every stock in the universe)..
There was still a puffy amount of time value priced into this week’s
BIDU 110 calls…this has me selling the new, next week Nov 115 calls
now, then looking to buy back the 110 calls when this flattens
closer to the intrinsic value.
On AMZN, I’m selling next week’s 170 calls too and keeping this week’s
170 calls for the time being (there’s still $1 of time value priced
into these 170 calls that expire tomorrow!)
The ishares silver trust (SLV), the silver etf that has weekly options
are very compelling. Would like to know if you checked out this
action and the premiums?!
This one is a compelling vehicle for income trades! I haven’t done
any as of yet simply because I’ve been pre-occupied this week, etc.
Okay – gotta get this off! Talk soon,
–P
Master Income Update -
Wednesday, 10 November 2010
Good morning,
There’s a couple of things to share and get to.
But first I’ve had some personal things to attend to that have put
my normal attention to trading on the backburner. And my apology to
you due to the fact I assumed some of this was communicated to you.
Anyway, in a nutshell my grandmother passed away over the weekend,
and on top of this there’s been some further complications with my
Dad (her son) – and it’s kind of hitting all at the same time.
I’m really okay with things, but it’s been a lot at once. The funeral
originally planned for this Thursday is going to be on Friday (we
found out that Thursday, being Veteran’s Day, is closed to burials on
that day). Anyway – Karson will cover things this Friday as I won’t
be around, etc.
So I apologize for being absent the past few days.
I do have some insights today, from the past few days….
a) there are companies out there doing special, over-sized dividends
(called bonuses) right now…doing them before the calendar changes
into 2011, with the muddled question marks as our government’s tax
policy in both income and dividend income for investors.
In that light, WYNN is doing a “bonus” of $8 per share. This will be
paid out in December and the ex-dividend date (the day you need to
make a purchase of WYNN shares) will be Nov 19th.
This has me intrigued – and I’ll probably be doing something about
this – but I wanted to tell you about it now.
b) The earth/commodity complex is just a buzz (it’s on the cover of
this week’s Barron’s) because of the twin forces of this stupid idiotic
QE2 (Quantitative Easing) where the dollar is being devalued, keeping
interest rates in the dirt…and holding off inflation, etc — and
the other forces of foreign nations…especially China…on a buying
spree of companies, metals, commodities that have real value.
It’s all very complex….but these forces are sending any and all of
these kinds of companies on the move north.
I look at SLV here..which is a Silver ETF that has weekly options
traded on it. It has exploded up and out of it’s doldrums – and it
likely stays in an uptrend between now and at the next foreseeable
horizon (it will keep going up, until it doesn’t go up!!).
But given there’s the metal’s price, and all this hub bub and flight
to safety…the premiums should continue to be killer on a weekly
basis for SLV.
Hell – just with 2 1/2 days left – there’s compelling premium in
these options!
I did a quick check and the margin requirement for SLV is still 50%
(there was a story this morning that Goldman, or some other big
investment bank) was raising margin requirements on silver.
But I guess since SLV is an ETF of silver companies – it’s broad
enough and not centered in one security or something.
The put credit spread is an excellent way of profiting on this premium,
simply doing these at these at the start of each Thursday (which is
when they come out).
There’s also $1 increment strike prices which makes it easy to shop
for the spread you want (rather than being stuck with $5 increments
for example).
I upped the remaining Jan 90 puts over in my BIDU position. I moved
some to the March 95 puts…and for approx 15% of my position, I moved
the puts to the March 100 puts.
The majority are at the March 95′s.
Okay – that’s it for right now. It’s good to check in and I appreciate
you understanding.
Over and out,
–Preston
Master Income Update -
Friday, Nov 5th, 2010
Good grief, can’t believe I about spaced getting out an update
today!?
The main things I’m doing today is rolling out AMZN this 170 calls
to next week’s 170 calls.
I am also rolling out (and over-writing with a portion) on BIDU to
next week’s 110 calls.
I am also re-considering something. Given all the new stimulus
(the dumb QE2 thing) – it benefits the financial system and injects
them with new funds (printed funds, but funds).
Anyway – it’s ripping the banking stocks out from their doldrums and
clearing a lot of funky, crunky trading ranges.
XLF is on fire because of this (hardly no premium, this one’s hard
to get excited about, even though it has weekly options!).
But this new direction is making me re-think/re-consider doing
premiums on both FAS AND FAZ. I’m going to be sticking with FAS
(the long/bullish one).
So I’ll be angling out of the FAZ one as time goes by. I still think
the market needs to catch it’s breath…especially these banks.
But who knows…when you’ve been pushed around for so long, you
never know how long a run can last in a stock or sector.
The spreads for next week on AMZN and GS look great.
I want to make sure this gets out before market close – so here
goes. –P
P.S. I’m writing calls into next week on both FAS and FAZ too.
Master Income Update -
Thursday, 4 November 2010
Good morning,
With a frothy market on our hands (very understandable after all this
time where equities have had a thumb firmly pressing down on them),
and new weekly options out and about – here’s some of what I’m doing:
I’m rolling out on FAS, buying back this week’s 22 calls and selling
next week’s 24 calls.
With part of my BIDU being at the short 115 calls, I’m figuring
these will expire worthless, so I’m overwriting and selling this
week’s 110 calls.
Also, when I look at at-the-money put premium on the likes of AMZN
(and BIDU) – it makes sense to be a seller of these as:
1) I’m considering adding to these MIT trades anyway…why not put
extra $$ in my pocket in the process of “considering” this? When
you do this in the form of a spread, it makes it waaaay easier on
the margin factor.
For example, here’s something I’m doing today…selling next week’s
170 puts on AMZN and buying next week’s 160 puts. The credit in is
approx $2.90.
The reason why is cause I’m looking to add to my AMZN position, this
puts a cashflow in front of me for doing what I want to do anyway.
If AMZN stays north of $170? Come next Thursday, I’ll do this again
for the ensuing week.
I’m also doing this on BIDU, selling next week’s 110 puts, and buying
next week’s 105 puts.
I am also adjusting upward my put protection on AMZN. I am selling
the Jan 140 puts and buying April 150 puts in their place.
I’ll be doing a ton of rolls, etc come tomorrow, so make sure to
tune in!
Over and out, –P
Master Income Update -
Wed, 3 November 2010
Good morning,
However things stacked up politically, it’s nice to move on past
that event for the market. From the looks of it…the market was
expecting this, it got it, so there’s no big reaction in the numbers
today.
The Fed is meeting today and tomorrow about the “easing” issue, so
that’s going on right now.
Priceline (PCLN) announces earnings next Monday…I will be very
interested to see how their new weekly options are priced (the ones
that come out tomorrow morning for next Friday’s expiration…it’s
these options that will contain the earnings announcement as this
week’s will expire before the announcement….if you can follow all
that!)
I’m looking forward to doing more over-writing and trading when the
new weeklies are born tomorrow.
I adjusted approx 15% of my BIDU puts, moving them from the Jan 90
puts up to the March 95 puts.
I also expect a bunch of premium to come off both FAS and FAZ as the
“easing” stuff gets more widely known…this of course, goes right to
the ‘ol bottom line!
Be back with more manana!!
–P
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