Publications

4/5/12 Trade Alert: Biotech Three-peat

Put Credit Spread on United Therapeutics Corp (NasdaqGS: UTHR) “Buy to Open” August $32.50 Put and “Sell to Open” August $40 Put Option Symbols: UTHR120818P32.5 and UTHR120818P40 Limit Order Price: Net credit of $1.35 or more ($135 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

4/3/12 Trade Alert: Taking Advantage of a Price Run-Up

Please Note: This recommended trade only applies to those OFI members who already have a position in Cisco Systems stock. Do NOT do this trade as an initial position. 1. Covered Call on Cisco Systems (Nasdaq: CSCO) “Sell to Open” June $21 Call Option Symbol: CSCO120616C21 Limit Order Price: $1.00 per share credit or more […]… Read More

3/29/12 Trade Alert: Good Guys Finish First

1. Sell Put Credit Spread on Cummins (NYSE: CMI) “Buy to Open” June $97.50 Put and “Sell to Open” June $105 Put Option Symbols: CMI120616P97.5 and CMI120616P105 Limit Order Price: Net credit of $1.35 or more ($135 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

3/28/12 Weekly Briefing: Choosing Between Maximum Loss and Probability of Loss

In options trading, protecting yourself against one type of risk can expose you to another type of risk. The key to trading success is balancing both types of risk simultaneously.

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3/22/12 Trade Alert: Loading up on Carbs

1. Sell Put Credit Spread on Carbo Ceramics (NYSE: CRR) “Buy to Open” May $75 Put and “Sell to Open” May $85 Put Option Symbols: CRR120519P75 and CRR120519P85 Limit Order Price: Net credit of $2.00 or more ($200 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More

3/16/12 Trade Alert: Too Close for Comfort Part 2 Chinese Style

Buy $55 Call on NetEase.com (NasdaqGS: NTES) Please Note: This recommended trade only applies to those OFI members who already have a position in NetEase.com. Do NOT do this trade as an initial position. “Buy to Close” March $55 Call Option Symbol: NTES120317C55 Limit Order Price: Net debit of $0.10 or less ($10 per contract) […]… Read More

3/16/12 Trade Alert: Too Close for Comfort

1. Close $36/$38 Call Spread on MetLife (NYSE: MET) Please Note: This recommended trade only applies to those OFI members who already have a position in MetLife. Do NOT do this trade as an initial position. “Buy to Close” March $38 Call and “Sell to Close” March $36 Call Option Symbols: MET120317C38 and MET120317C36 Limit […]… Read More

3/12/12 Weekly Briefing: When to Roll Bear Call Spreads “Up and Out” Rather than Just Out

Three of OFI’s March portfolio positions are “on the edge” and need to be watched carefully prior to options expiration this Friday.

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3/8/12 Trade Alert: A Utility Primed to Benefit From Cheap Natural Gas

1. Sell Put Credit Spread on Dominion Resources (NYSE: D) “Buy to Open” July $45 Put and “Sell to Open” July $50 Put Option Symbols: D120721P45 and D120721P50 Limit Order Price: Net credit of $1.15 or more ($115 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More

3/1/12 Trade Alert: Cashing in on Shale Oil

1. Sell Put Credit Spread on Lufkin Industries (Nasdaq: LUFK) “Buy to Open” June $60 Put and “Sell to Open” June $70 Put Option Symbols: LUFK120616P60 and LUFK120616P70 Limit Order Price: Net credit of $2.20 or more ($220 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income […]… Read More