Master Income Update -
Tuesday, 26 April 2011
Hello,
With approx 1 hour until the close today – here’s a few things I’m looking at and doing
(and not doing!)
AMZN announces results after the close today, and with an MIT position in the name,
what I’m doing here is nothing. I don’t have any calls sold for the week and I’ve got the
160 puts in place out into July. (July 160′s).
It’s impossible to know what will be reported and how the stock will respond. But I plan
on creating some income here after the announcement by selling calls, etc.
Just an FYI on that.
I still haven’t jumped in and sold calls post-earnings in NFLX yet. The 10 of the this-week
270 calls that I sold are like $.04 cents. But as you know I laid off selling all 100% of the
possible calls before the earnings announcement.
The 10 I did sell where waaaay out of the money. I was looking for upside in the shares,
since that’s what NFLX is capable of doing…but it was just so-so this time around.
I’ll let you know when I start selling the weekly calls again.
On another note, INTC trading here at $22.40 or so has broken out of a long time
channel it kept hitting it’s head against. INTC having weeklies is a compelling candidate
to get long stock, sell weekly calls – and if you have a portfolio margin a/c…the dividend
yield is like 3.2% (which can pay for the margin interest all by itself).
Anyway – looking to get through earnings here…BIDU will be up on deck after Wed’s
close – and it’s just a thrill ride here this week with these announcements!
Over and out, –P
Traders Edge Network, LLC
4617 Jupiter Drive
Salt Lake City, Utah
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Forward
Just rolled V puts to next weeks 77.50
FFIV 105 puts to selling nexts weeks 110
rolling this weeks 97.5 call to next weeks 110
–
-Karson Keith
-The Pirate’s Office-
Karson Keith here letting you know what we are doing.
I will get right to it.
FAS – Roll this weeks 30 puts to next weeks 30′s
Roll this weeks 29 calls to next weeks 29′s
LVS- calls from this weeks 45′s to next weeks 46′s
Selling 20 of the 46 puts for next week
JPM – Rolling this weeks 46 puts to next weeks 45
Selling the 45 calls for next week.
BIDU – Selling the 160 calls for next week hoping this weeks will expire worthless.
Obviously I am keeping an eye on it.
GE – Selling next weeks 20′s on the call side.
FAZ – Selling the 41 Puts for next week.
I realize these are on weekly positions.
Master Income Update -
Thursday, 21 April 2011
Hello there!
Wow – what a ton to cram in on a day like today (Thursday, being the new day weeklies
are created, and Thursday being the expiration this week due to Good Friday and the
market being closed!)
Plus – I’m out of town and not behind my normal trading turrent – so it makes for some
fun!!
Add on to that earnings season and some of the biggest T-Rex’s in the jungle getting
ready to step up to bat….and that adds for some swerves and curves!
But here’s what I’m doing and I’ll start with the biggies first:
NFLX announces earnings next Monday after the close….and with the new weeklies
that were just created this morning – the premiums are simply insane. I’m long 3,000
shares and I’m buying back the calls that I sold for this week. I’m also buying back the
puts that I sold (but I don’t comment about those that much on the MIT updates).
Anyway – with the long weekend, it’s very tempting to sell premium then let all those
non-trading days of time decay work for you.
And I’m deciding to sort of do this. Meaning, I’m selling 10 of the $270 calls on NFLX
(for nearly $4.70 in premium)….these are $20 out of the money – and we’ll just see
what happens with this weekend time decay. I can’t imagine much with this huge date
staring NFLX in the face come Monday after the close.
But what I’m NOT doing is selling a bunch of new premium right there at the money.
As tempting as this is, NFLX could rocket up another $30 or $40 and we’d miss most of
that run.
Anyway – I’m just laying off (for the most part) of selling premium on it…I may change
my mind come Monday – but I’ll let you know.
BIDU also announces earnings, but it’ll be on Wednesday….so with BIDU trading here
(actually pinning it’s butt off) at $150, I’m buying back 30 calls I sold at the $145 strike
for this week…I’m going to wait until later in the day to buy back the 40 calls again as
the stock is pinning madly here right at $150 and there’s still a bunch of premium left
in them (this falls off drastically toward the close if this behavior keeps up!)
A short plug here – we’ll be covering so many f’ing killer ways to make money at the
live show in Chicago next week that it’ll make your head spin. I know that Lori can
squeeze you in, even a guest at last minute here because you are an MIT member. So
I dare you to go. I dare you to break plans and just say “screw it, I’m in”. I promise you
it will be a highlight and something you point to as a true turning point.
So stop messing around and come out and meet me and my crew !!!!
Okay – sorry..
Look, on BIDU, you have to understand that the premiums are just nuts and crazy for
next week. So the following that i”m doing is purely to take advantage of this long
weekend of time decay. And I’m only going to do this on approx half of my position.
But I’m selling 20 of next week’s 160 calls and selling 10 of the 155 calls. You get $2+
for these $10 out of the money one’s and $3.60 or so for the $155′s!! Surreal.
So that’s what I’m doing on BIDU.
There’s also a load of other positions that I’m rolling out. But seeing how this is
getting soooooo long….I’ll look to do a second update – and it may likely be Karson
filling you in on what I do with AMZN and the rest of the littany!
Or it may be. After all, that’s what us traders do, even when we’re on spring break…we
trade!!!
–P
Master Income Update -
Thursday, 14 April 2011
Hello there,
I’m doing a bunch of things today – and I’ll be doing a bunch more things tomorrow,
namely on NFLX as it’s moving here into the close and really covering some ground
(still quite a bit of time value priced in NFLX options – it can move that much!)
Anyway -
On BIDU, I’m rolling out of my this-week 140 calls. I’m rolling out 30 of my 70 call
contracts from the 140′s to next week’s 145 calls. On the remaining 40 of them I’m rolling
them to next week’s 150 calls.
I’m also moving my last protective puts that are in the month of June (20 of the June
115 puts) to the Sept 130 puts. Now all my protective puts are out in September at
the 120, 125 and 130 strikes. BIDU trades at $146 almost $147 today.
BIDU also has earnings the week after next, fyi.
I’m doing an overwrite on POT, letting all 30 of my tomorrow $60 calls (I’ll keep them in
place and watch them expire), I’m selling 30 more of next week’s 55 calls.
Doing the same on AMZN, selling 20 contracts (against 2,000 shares) of next week’s 180
calls. I will watch my this-week 185 calls expire worthless.
Also, doing an overwrite on JPM, selling next week’s $46 calls and watching my $47
calls for tomorrow expire worthless.
There will be a bunch more tomorrow so stay tuned! –P
Master Income Update -
Tuesday, 12 April 2011
Good morning,
Well, I’m deciding to ditch out of two MIT positions. In a
nutshell, they aren’t pulling their own weight.
This is due mainly because the stock turns into something
un-interesting. Or, a complete fall out of favor.
For IBM, it’s un-interesting, which means option premiums
are dull as well. When I first took a stab with IBM, I placed
my put protection with a closer expiration date – just to
see how the trade would perform.
The puts I did were the April 150 puts…and we’re now right
there. And I’m deciding to bail out on IBM…so I’m selling
all my shares, buying back this week’s 165 calls and also
selling these April 150 puts (for like a nickel).
Again, when there’s other ultra compelling stocks/premiums,
etc. It doesn’t make sense to tie capital up like this.
The other one I’m ditching out of is RIMM. The reason here
is two-fold: a) un-interesting and b) a complete fall out of
favor and grace.
Both these reasons result in boring, un-compelling option
premiums for selling…even on a weekly basis.
So I’m selling all my shares…buying back this week’s 57.50
calls – and then selling all of my May 62.50 puts. (RIMM
trades around $53 here).
Not doing anything else today..
JPM comes out with earnings tomorrow morning, but I have fine
with this. I own shares here, sell weekly calls and also
sell half as many weekly at-the-money puts each week on JPM.
–P
Master Income Update -
Friday, 8 April 2011
Hello and how are you??
Now that pleasantries are out of the way – I’ve got a lot to update you on.
Here’s the rundown for today’s MIT trades adjustments here on expiration Friday,
April 8th (a week from the normal April expiration!) :
I’m going to watch 20 calls expire worthless today on FFIV, and I’m selling 10 more for
next Friday, the FFIV 100 calls. FFIV seems stuck here under $100 for a while…while
it stays out of favor I guess! That means I currently have 30 short calls (20 will expire
in a few hours here) while owning 5 leap calls (out in 2012) and 500 shares. The premium
generated this week really helped this one.
On BIDU:
I’m rolling out my 20 135 calls into next week’s 140 calls. And I’m rolling my 50 140
calls into next week’s 140 calls. That means 100% of my written calls for next week
are all at the $140 strike.
On a side note, keep in mind we’re entering earnings season, and you have to, have to
have to check upcoming earnings dates during April given it’s an earnings announcement
month!
Okay, on the put protection side, I’m moving 20 of my June 115 puts to the Sept 125
puts.
So on the 7,000 shares, it breaks down like this: 20 June 115 puts, 30 Sep 120 puts &
20 Sep 125 puts on BIDU.
On FAS, I’m selling 20 calls (I own 2,000 shares) for next week’s 31 calls. I’m watching
my current calls lose time value…so this is an overwrite for the time being.
On GE I had some extra calls (an overwrite), basically I’ve sold 10 April 20 calls and I also
had sold 10 April Week2 20 calls. I’m buying back the Week 2′s (today’s) and leaving the
April 20 calls in place for next week.
I am overwriting in IBM, selling next week’s 165 calls and letting today’s 165 calls expire
worthless. IBM is hum-drum and extremely boring…my puts are April 150 puts against
the stock (1,000 shares of IBM) – and I may curtain this one come the end of next week,
fyi.
I am overwriting in POT, selling next week’s 60 calls and letting today’s $60 calls expire
worthless…this is for 30 contracts. (3,000 shares here).
On NVDA, on 2,000 shares I’ve had 40 calls sold against it, 20 of them weeklies, the $18
strike, and 20 sold of the April 20 calls. I’m buying back these April 20 calls for $.04 cents,
and selling next week’s 18 calls.
When Monday appears, I’ll have 20 $18 calls sold for the week, back to a 1 to 1 ratio.
On NFLX I’m selling next week’s 240 calls for 10 contracts. I already rolled 20 contracts
the other day (total of 3,000 shares here). I’m watching for the end of the day to see
if my current 10 $240 calls will expire worthless. It hasn’t yet traded above that mark
all day so far, fyi.
On AMZN, I’m rolling out of this week’s 180 calls and selling 185 calls on half my
position. The other half are today’s 185 calls which still are teetering around that
strike price…meaning it still has some fluff priced into it!
Okay – that’s what I’m doing so far on this busy, busy day of trading! Remember, watch
future earnings dates…you have to know where they are!
Over and out for now, –P
Master Income Update -
Thursday, 7 April 2011
Good morning,
So far this morning, I’m selling next week calls in RIMM
while I let 10 57.50 and 10 60 calls expire worthless for
this week.
I’m selling 20 of next week’s 57.50 calls.
On NFLX, I’m rolling out of my 245 calls for this week and
selling the 235 calls for next week (the normal April expir-
ation).
I’m doing this on 2/3rd’s of my position…the other 1/3
are $240 calls for this week (I’ll be rolling these
tomorrow, or overwriting as they expire worthless).
I also adjusted 1/3 of my protective puts on NFLX, moving
the June 205 puts to the Sept 220 puts.
I’ll be doing a ton of adjusting come tomorrow, but that’s
what I’m doing so far today on Thursday.
Hope this finds you well, –P
Master Income Update -
Monday, 4 April 2011
Hello,
With NFLX hot to trot and hanging out here above $240 (even as the general market
gets a little soft into this last hour of trading today) – I’m adjusting 10 of my 30
protective puts.
The lowest strike puts I own right now are the June 200 puts. Today, I’m adjusting/
raising them up to the June 220 puts.
I will have to consider this on BIDU pretty soon if it decides to keep flexing it’s
muscles too.
These two are my biggest positions, period.
This is the only thing I’m doing today on my MIT trades.
Hope this finds you well!
–P
P.S. If you decide to come to Chicago at the end of this month (dates and details at:
www.unemployedtour.com) – I’ll unfurl a whole dumptruck full load of other things
I’m doing with weekly options as far as income trading is concerned. I get sick of
beating this drum, but you have no idea what you’re missing “you don’t know what you
don’t know”! But during a solid two days of trading together it gives me the context and
time I need to explain a bunch of these things in order, where you’ll “get it”, where it’ll
make sense!
Anyway – since the time on the calendar is a tickin’ – I’d be an idiot not to remind you
about how killer this is going to be in Chicago. Not to mention getting to hang with Jon
Najarian, and picking his options brain, to touring the CBOE options exchange floor
meeting the coolest freaking people in the world (the other attendees) – and generally
having this be a highlight and a true blessing in your life that you’ll remember for years to
come.
Not to mention probably making all the money back you spend on getting there with
the trades we’ll find and do right there in class.
That’s a tall order – but I’m to it – and I’ll deliver in spades!
Take a peek at: www.unemployedtour.com right now before you forget. If you have any
questions at all, you can call Lori at: 801-733-4190 and she’ll be glad to help you in any
way possible. –P
Master Income Update -
Friday, 1 April 2011
Greetings,
Here’s all the shizzle I’m doing today for my ongoing MIT income trades:
I’ve got 20 calls to roll on NFLX. I’ve got 3,000 shares of NFLX now and 10 calls have
been sold for next week.
For the rest of these 20, 10 of them I’m rolling from today’s 230 calls to next week’s
240 calls. For the other 10 I’m rolling them from today’s 240 calls to next week’s
245 calls.
I’m overwriting on NVDA, selling 20 next week 18 calls. I’m rolling out of all my calls
on POT, that’s 30 contracts, buying back today’s 60 calls and selling next week’s 60
calls.
I’m rolling out of 10 of my AMZN calls – buying back today’s 180 calls and selling next
week’s 185 calls.
I’m rolling out of all my calls on JPM, buying back today’s 46 calls and selling next week’s
47 calls.
I’m rolling out of all my calls on LVS, buying back today’s 40 calls and selling next week’s
44 calls.
I’m rolling out of all my calls on FAS, buying back today’s 30 calls and selling next week’s
31 calls.
I’m rolling out of the rest of my BIDU (50 contracts), buying back today’s 135 calls and
selling next week’s 140 calls. (BIDU is really on the move these days!)
I’m overwriting on FFIV with it’ sudden drop – I’m selling 10 more calls, next week’s
100 calls, so I have 10 105′s and 10 100′s sold against a total of 1,000 shares long
(500 actual shares and 5 calls into 2012 “Leaps”)
Okay – that’s what I’ve got for today on expiration Friday! I hope you have a great
weekend. –P
