Look over on the far right under New Downloads for a video that I made on a live analysis, execution and documentation of an adjustment on Master Card (MA) Double Calendar. The stock price had been hovering around the lower breakeven for the last week, and with the drop in the market today, it made sense to do the adjustment at this time. You can either view it as streaming or download it and store it on your PC.
My Spread Account is doing very well so far this month, especially today with all the negative delta that I am carrying. As you can tell, looking at my open positions, I have 6 Bear Call spreads open. I opened the 6th on Thursday with a quarterly expiration (6/30) on IWM.
I also opened a single Put Calendar on IBM on 6/2. I had head my head up my butt and only bought one, instead of 5 or 6 like I normally would have. I don’t like to have small positions that I need to monitor, so I will probably exit very soon.
June expiration (on 6/19) is a Triple Witching expiration (the contracts for stock index futures, stock index options and stock options all expire on the same day. Triple witching days happen four times a year on the third Friday of March, June, September and December). Count on most of the week being very volatile. If you have any trades that expire this month, it’s a very good idea to exit them either the week before or early expiration week. I will. It also frees up capital for the JUL expiration.
Conservative Account
I took my lumps on NOK and took a loss of $276. I did pick Altria Group (MO) as its replacement for several reasons: revenue growth of 25%, dividend yield of 7%, $813B in cash, and $20 stock price has been a key support area for several years. So I bought 300 sh for 20.25 Friday. I was in a bit of a hurry since the Div Ex date is 6/10 and I wanted to collect that 35¢ dividend that would bring the cost basis down to 19.90 when it pays on 7/9. I didn’t sell any Calls because I want to wait until the price gets above $21 before I make a decision.
Just as an FY, I get all of the fundamental data I use from two web sites:
- Dividend information from: http://dividendinvestor.com/
- Fundamental information from: http://ycharts.com/
Market Comment
Lovin’ it, man! VIX above 30 and an apparent range-bound market with wild ups and downs. Were you looking for a prediction? Not usually from me. Sorry.
◄ Jeff ►
Look over on the far right under New Downloads for a video that I made on a live analysis, execution and documentation of an adjustment on Master Card (MA) Double Calendar. The stock price had been hovering around the lower breakeven for the last week, and with the drop in the market today, it made sense to do the adjustment at this time. You can either view it as streaming or download it and store it on your PC.
My Spread Account is doing very well so far this month, especially today with the negative delta that I am carrying. As you can tell, looking at my open positions, I have 6 Bear Call spreads open. I opened the 6th on Thursday with a quarterly expiration (6/30) on IWM.
I also opened a single Put Calendar on IBM on 6/2. I had head my head up my butt and only bought one, instead of 5 or 6 like I normally would have. I don’t like to have small positions that I need to monitor, so I will probably exit very soon.
June expiration (on 6/19) is a Triple Witching expiration (the contracts for stock index futures, stock index options and stock options all expire on the same day. Triple witching days happen four times a year on the third Friday of March, June, September and December). Count on most of the week being very volatile. If you have any trades that expire this month, it’s a very good idea to exit them either the week before or early expiration week. I will. It also frees up capital for the JUL expiration.
Conservative Account
I took my lumps on NOK and took a loss of $276. I did pick Altria Group (MO) as its replacement for several reasons: revenue growth of 25%, dividend yield of 7%, $813B in cash, and $20 stock price has been a key support area for several years. So I bought 200 sh for 20.25 Friday. I was in a bit of a hurry since the Div Ex date is 6/10 and I wanted to collect that 35¢ dividend that would bring the cost basis down to 19.90 when it pays on 7/9. I didn’t sell any Calls because I want to wait until the price gets above $21 before I make a decision.
Just as an FY, I get all of the fundamental data I use from two web sites:
Dividend information from: http://dividendinvestor.com/
Fundamental information from: http://ycharts.com/
Market Comment
Lovin’ it, man! VIX above 30 and an apparent range-bound market with wild ups and downs. Were you looking for a prediction? Not usually from me. Sorry.
◄ Jeff ►
