JCI New Trade With Options Trading Strategies

Posted on September 16, 2011 by Old Man Trader

I’ve been in and out of JCI a lot. In another account, we have some Naked puts that we’ve bought back and rolled out a number of months when the market looked like it might be crashing.

Although who knows where the market is going, with JCI once in the $40′s and the company just as solid as it was when it was higher, I opened a new trade.

I bought shares this time at $29.80. I put the order in when the stock was higher. Figuring, thru the course of the day, why pay more since it was in a range of about .50 cents. It came down and I was filled. With the month over this week, I then sold the $30 call to turn this into a Covered Calls trade.

If the stock is taken away from me in October, it’s a 5.5% return. If not, with my cost at $28.45, I will have choices of what strike price to sell for November if it stays in this range.

Have you looked at some of the closed trades? My partner is very very good at spreads. Even with the market as bad as it is, he’s making really good $$$$$$$$$$. It’s something to look at. I’m looking at it.

Good luck. As always please make your own decisions.

Old Man Trader

Ford And What’s Happening

Posted on September 7, 2011 by Old Man Trader

I’ve been quiet for a while. The ups and downs in the market that only a few could possible like. I haven’t sold any position at a loss during this quiet period for me, but what I’ve done is either sold come covered calls or bought back and rolled out, at a profit a lot of contracts with my Naked Puts, Options Trading Strategy.

I’ve sold some Covered Calls a couple of times on some Ford stock I now own. What I did was roll the put forward, I figured it would get put to me, a lot of it did, and I turned it into a Covered Call where I’m making some money, not much, as I sit with Ford.

I have Naked Puts that go out as far as February.

I’m probably like you. I had no idea how bad it was going to get, so I took a very conservative approach, brought in some cash, and gave myself more time. And, when I could I lowered the strike price to cut exposure down more, to cut my cost of the trade down more, and I made some $$$$$$$.

To some, what I’ve done is too conservative. I understand that. But, as traders, you have to stay within your own comfort zone.

I wish you all good luck.

As always make your own decisions and the next time I trade, I will post something.

Old Man Trader

Hain Again In Our Options Trading Strategies

Posted on August 18, 2011 by Old Man Trader

Many of you probably feel the same way. I’m holding on.

The challenge is, can you add $$$$ to your account even if the value of your account is down?

How many of you have lost money but you aren’t adding some $$$$ to you account, so if and when the market comes back, you can actually be ahead of where you were before.

Now if we crash, that can’t happen. But, if we don’t it is possible.

So, I continue to like Hain the company. I had the August $35 Naked Puts sold. With the stock earlier this week under $30, I bought it back and rolled it out to the November $35 Naked Puts.

I know I sound like a broken record. I don’t like going out to November.

I have trades that are now months past that. It’s part of playing defense while you put some $$$$$$ in your account.

I picked up .70 cents or if you had 10 contracts, or if you are on the line for 1000 shares, depending on how you look at it. That’s $700 for every ten contracts.

So, I picked up some money while I cut my costs on Hain even more. In less than three months, my cost is down to $32.75 on the $35 Naked Put. With the stock now over $31 at the close of the market yesterday, instead of being down close to $4 on the deal, it’s over a $1. Not great, but much better than if I just bought the stock.

As always, make your own decisions and we wish you good luck.

And, if you have been following our site for months, we ask you why more of you have not signed up for our service.

We’ve added short term trades to try and serve you even better. You can make money no matter what the market it doing.

Good luck

Old Man Trader

Real D Inc Makes For A REAL GOOD Credit Spread Candidate

Posted on August 17, 2011 by cashflow

Subscribers enjoyed this Credit Spread trade setup when this it was first entered into. I did a Bearish Call Credit Spread on “RLD” Real D, Inc. The trade was initiated on July 29^th. The stock was trading around $15.60.

I sold to open the August 17.50 call and bought to open the August 20 call for a net credit of $0.30. The $0.30 cents per share was deposited into my account on August 1^st (The next trading day). The stock continued to drop and on August 12^th “RLD” was trading around $12.95.

I decided to exit my position early. That meant that I would have to give back some of the premium I received on the initial trade. So I went and ended my obligation by buying back the option that I initially sold (the August 17.50 call). I paid $0.05 cents to end my obligation and get out of harm’s way a full week early.

Subscribers were kept up to date on the adjustments made through the trade.

If you are not a subscriber, get yourself going by Clicking Here! Do you realize that if you had just placed this trade you would have already paid for a few months of your subscription? So I have one question for you, What Are You Waiting For, get yourself subscribed to our service.

Happy Trading
Cash Flow King
Follow Me On Twitter

Credit Spread Trade On Dillard’s, In & Out Today

Posted on August 15, 2011 by cashflow

This type of Credit Spreads trade is quickly turning into my favorite Option Trading Strategies. Friday was an interesting trading day; actually the last few weeks in the market have been interesting. Most would even call it difficult.

My Credit Spread Trade was on Dillard’s “DDS”. Dillard’s came crashing down right on the open. They closed Thursday at $50.75 and opened on Friday at $45.01. That was a drop of $5.74.

I went in and set up an order to sell to open the August 50 call and I bought to open the August 55 call for a net credit of $0.50 cents.

The order was filled fairly quickly and I got the $0.50 credit I was looking for. The Credit Spread quickly lost premium and the market maker opened the spreads on all of the options on Dillard’s including the two that I was in the with.

I put in an order to exit the Credit Spread trade for $0.15 cents. The exit order was filled during the day while I was out (some time in the afternoon).

After exiting the positions that left me a credit of $0.35 cents and a rate-of-return of 7.8% and that was on ONE Credit spread for less than one day.

This was a really cool day trade and this type of Credit Spread trade is quickly turning into one of my favorite Option Trading Strategies.

For our subscribers I will be sending out these candidates as a bonus starting next week. All of our subscribers will receive a strategy worksheet on the entry, exit and management rules for these types of Credit Spreads. You will see that in your email shortly. You will then have the tool and the ammo to trade the Credit Spread candidates that fit your trading personality.

Happy Trading
Cash Flow King
Follow Me On Twitter

Upgraded Today ? Wow!

Posted on August 8, 2011 by Old Man Trader

I don’t know whether I should laugh or cry. How many of you feel that way. Everyone ??

With our Options Trading Strategies, all I am trying to do is cut costs if that is possible and bring $$$$$$$ premium in for two reasons. One is the obvious. Make a little money even though I am losing money because the value of all stocks seem to be going down.

The second is, but going out more months, which I don’t like to do, there is more time in the options. So with that, there is a lesser chance you will have a stock put to you if you have a naked put.

With all of that, and the market crashing big time again today, Atml was upgraded.

I’ve been in Atmel since I think February. I’ve gone from selling the 14 put to 12 to 11. The stock was down .58 cents to $9.26. My cost is over $10. Considering how bad everything is, it’s not bad, but it’s still bad.

So, the small smile on my face about the upgrade is, if the crashing ever stops, ATML might be okay.

Good luck. Play defense.

As always make your own decisions.

Old Man Trader

PNRA On The Worst Day

Posted on August 4, 2011 by Old Man Trader

I was going to send this to subscribers only first, but if this helps everyone, that’s great. On a day like today, everyone needs a free shot.

I still don’t understand why more of you haven’t subscribed.

It was the worlds worst day.

In the morning, just for protection, before the roof caved in and the market was down over 150 at the time but it was not even close to the over 500 plus it was down, I bought back with my Options Trading Strategy with Naked Puts, my Panera Bread 105 August. I sold the 1o0 November. I picked up .90 cents and dropped my cost by not just the $5 on the strike price but $5.90 when you add the premium I picked up.

All this on the worlds worse day. I hated today just like you. I was calm. Guess I’ve been around so long that I’ve been through this before. I’ve been surprised how calm I’ve been. I remember the first time I went through this how uptight I was.

By staying calm, it’s easy for me to make quick decisions if I have to.

If you want to know what is going to happen tomorrow, the truth is, I have no idea.

I’m playing defense. Yes, the value of my trading accounts went down. Yes it was ugly. Yes it wasn’t fun. But, I’m hanging in there and I hope you can hang in there as well.

Think about this. I opened my Naked Puts with PNRA at the strike price of $115. Every time I’ve done this trade, I’ve made $$$$$$ and dropped $5. My cost is now under $98. I’ve cut my costs big time and if the world doesn’t end, I have a shot at making this a successful trade mainly because of how I managed the trade.

Good luck

Old Man Trader

Panic? It doesn’t help. Been there and done that.

Good luck

Old Man Trader

3 Trades

Posted on August 4, 2011 by Old Man Trader

I did three trades yesterday. Two on the same stock. It wasn’t something I planned. I was reacting to the market.

The three trades have been emailed to our subscriber list.

We won’t put the trades up on our free portion of our web site until next week.

What I’m happy to share with you at this point was I made money on all of the trades and cut my exposure down at the same time.

I don’t like the market. Hopefully that will change in the near future. I’m more interested in making money and cutting exposure.

If you have followed our trades and been reading the site, we are wondering why more of you haven’t signed up, so we have changed how we are doing things.

Good luck….Take care of your $$$$$$$$ and as always, make your own decisions. Please don’t just make a trade because we do. Do your own research.

Old Man Trader

New Trade Suggestion….With 15% Return

Posted on August 3, 2011 by Old Man Trader

With the market really ugly, we all have choices to make. Run and hide, which is fine if that is your choice, or put your $$$$$$$ to work with as much safety as possible.

For our subscribers, I have e mailed a potential trade to look at with our Options Trading Strategies. It’s a trade that will net you 15% on an annual basis. And, that’s not all.

You have safety of almost $1 in a stock under $10. Sure, there is no such thing as safety in todays market.

But, on top of that, unless this turns into a crash, you can make a wonderful return in tough times.

If you have followed our site and watched how we have made $$$$$ and managed our trades, have you asked yourself why you haven’t signed up.

For those that have, we say thanks.

To everyone who reads our site, whether you are a subscriber or not…..good luck

Old Man Trader

HBAN With A BBRO For September

Posted on August 1, 2011 by Old Man Trader

If you are smart enough to know what is going to happen over the next month, you are much much smarter than I am.

Huntington Banks has been winner. If you have been following our successful site which gives you plenty of winning trades and helps give you idea on how to manage trades, HBAN might be something that not only have many of you looked at, but I wonder how many have gotten involved with it because I have.

The good news is that there was a large open market purchase made by company Chairman of the Board, President, CEO – Stephen Steinour on July 26th, at stock price (US$6.02). You always like to see that.

What I did as HBAN started leaking, after getting in this trade when HBAN was over $6.50, with HBAN under $6.10 last week, I bought back my puts for August and sold the September $6 puts. I played with the bid–ask and picked up .09 cents or $90 for every 10 contracts or $1000 shares.

If you use all your money doing this trade, it’s 18% on an annual basis. If you only use about 25% because by selling a naked put you need a lot less in your account. That’s a return of over 70% for the year.

I don’t like that HBAN has gone down close to 10%. Who does? A lot of stocks are moving in that direction. But, I like this bank and I like how HBAN has been successful for me and what is there about this not to like.

Huntington Bancshares reported second-quarter net income of $145.9 million, or 16 cents a share, compared to $126.4 million, or 14 cents a share in the first quarter and $48.8 million, or three cents a share, in the second quarter of 2010. The company recently raised its quarterly dividend to four cents a share from one cent a share.

As always, please make your own decisions.

My partner and I wonder why more of you have not signed up. We are veteran traders who have learned how to manage trades and believe in the tremendous value on making money every month with options.

Good luck

Old Man Trader