Market Curiosity: Exploring Markets And Systems

December 30, 2010

Sell February BUD put (paper trade) (updated May 15) +100%, +100%,

Filed under: +76 to +100%, Long Calls, Long Stock, Short Puts — Tags: — Jeff Fitzmyers @ 11:57 pm

Action: Sell Feb 55 puts for around $90.
+ Apparently breaking out of the downtrend line.
+ Small down day (would have been if a narrow range day too.)
+ 3 waves down (corrective). EDIT MISTAKE: it’s 5 waves down but the waves overlap. So it could be corrective or a series of 1’s and 2’s. (I think?)
– Monthly CCI going down.
+ Daily and weekly CCI are fine.
+/- Volume: not sure.
+ B bands are compressed. Should expand soon.
– Not above weekly 34 EMA.

Jan 12: Bid NA, ask $0.30, volume of 2 at $0.15.

Jan 28: Kept meaning to sell the paper puts for the past few days but did not get around to it — one issue with “paper trading”. Now they are trading at about 1.55. I have closed all other short put positions, so I will keep this one open and see what happens.

Feb 23: The option expired in the money. The account keeps the premium +100%. Some things to note while waiting to see if a dividend is credited:
– If a call was not sold, the stock could be sold right now for a 0.7% gain.
– A March 55 call could be sold yesterday for 1.00, or today for 1.50. So wait until the daily CCI gets around +100.
– Could sell a June 60 call for 1.10.

March 1: Sell BUD April 55 call for 2.80.

March 23: Could have bought them back for about 1.30 last week. Just missed out on dividends of $1.18/share.

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