Hi Fellow Traders and Investors,
We hope that you had an enjoyable weekend and are getting ready for an interesting week ahead in the financial markets. This should be an interesting week especially since Congress is getting closer to finalizing a tax cut for most of us and also that our military will be conducting war games (practice we hope) with our allies in South Korea. Therefore we should see some high volatility, just what we like, for capturing profits in the markets.
As promised a couple of days ago, I am going to share with you what we traded and how we traded it earlier this past week. The purpose of doing this to share with newbies what InvestorsHELP.net is doing to generate excellent profits when it comes to options. For our more experienced FREE subscribers, this is pretty basic information and I am sure that you may want to add some words of wisdom using the "Comments" tab.
In late November we were doing some research on companies that were releasing their earnings in the near future with the idea of finding an excellent candidate for selling cash secured puts. Our research, coupled with our technical indicators, identified VMware (VMW) as the right candidate for us to select for this trade.
With earnings to be announced on Nov. 30th after market close, we selected the weekly puts at a strike of $120 to be sold for a premium of $1.10 per put sold which were scheduled to expire at close of market on Dec. 1st.
Two days later we noticed that the implied volatility continued to increase and the options became more expensive, so we sold additional weekly puts at a $115 strike and collected premiums of $1.70 per put sold on Nov. 29, the day before earnings release.
Risk: if price at close on Friday, Dec. 1st, would have been less than $120 or less than $115, the puts would have been exercised and we would have ended up owning a lot of VMW stock. This risk was acceptable to us since we had no problem owning VMW especially when we could/would have sold calls against this stock on Monday, Dec. 4th.
As it ended up, we were right in our analysis, VMW stock was not put to us, and we collected a lot of premium ($$$$) which we now have available for trading this week.
We hope that you are finding this information on our trades helpful to you. These blog posts should especially be helpful to those of you who are newbies (new to trading) since there is so much to learn or new to trading options.
We hope to share some of our pending trades with you this week. Be sure that you have signed up to be a FREE subscriber at InvestorsHELP.net so that we can keep you informed.
Good Luck this week,
Trader_Joe
We hope that you had an enjoyable weekend and are getting ready for an interesting week ahead in the financial markets. This should be an interesting week especially since Congress is getting closer to finalizing a tax cut for most of us and also that our military will be conducting war games (practice we hope) with our allies in South Korea. Therefore we should see some high volatility, just what we like, for capturing profits in the markets.
As promised a couple of days ago, I am going to share with you what we traded and how we traded it earlier this past week. The purpose of doing this to share with newbies what InvestorsHELP.net is doing to generate excellent profits when it comes to options. For our more experienced FREE subscribers, this is pretty basic information and I am sure that you may want to add some words of wisdom using the "Comments" tab.
In late November we were doing some research on companies that were releasing their earnings in the near future with the idea of finding an excellent candidate for selling cash secured puts. Our research, coupled with our technical indicators, identified VMware (VMW) as the right candidate for us to select for this trade.
With earnings to be announced on Nov. 30th after market close, we selected the weekly puts at a strike of $120 to be sold for a premium of $1.10 per put sold which were scheduled to expire at close of market on Dec. 1st.
Two days later we noticed that the implied volatility continued to increase and the options became more expensive, so we sold additional weekly puts at a $115 strike and collected premiums of $1.70 per put sold on Nov. 29, the day before earnings release.
Risk: if price at close on Friday, Dec. 1st, would have been less than $120 or less than $115, the puts would have been exercised and we would have ended up owning a lot of VMW stock. This risk was acceptable to us since we had no problem owning VMW especially when we could/would have sold calls against this stock on Monday, Dec. 4th.
As it ended up, we were right in our analysis, VMW stock was not put to us, and we collected a lot of premium ($$$$) which we now have available for trading this week.
We hope that you are finding this information on our trades helpful to you. These blog posts should especially be helpful to those of you who are newbies (new to trading) since there is so much to learn or new to trading options.
We hope to share some of our pending trades with you this week. Be sure that you have signed up to be a FREE subscriber at InvestorsHELP.net so that we can keep you informed.
Good Luck this week,
Trader_Joe
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