Publications

1/17/12 Trade Alert: Rolling Crown

Sell Horizontal Spread on Crown Holdings (NYSE: CCK) “Buy to Close” January $40 Put and “Sell to Open” July $40 Put Option Symbols: CCK120121P40 and CCK120721P40 Limit Order Price: Net credit of $0.50 or more ($50 per spread) Directional View for Underlying Stock: Bullish Options for Income Portfolio: Conservative Income Approximate margin requirement per contract: […]… Read More

1/12/12 Trade Alert: January Rolls

1. Vertical Roll on Amgen (Nasdaq: AMGN) “Buy to Close” January $62.50 Call and “Sell to Close” January $67.50 Call and “Sell to Open” April $62.50 Call and “Buy to Open” April $72.50 Call Option Symbols: AMGN120121C62.5 and AMGN120121C67.5 and AMGN120421C62.5 and AMGN120421C72.5 Limit Order Price for Four-Legged Vertical Roll: Net credit of $0.95 per […]… Read More

1/12/12 Trade Alert: Apparel Juggernaut

Sell Put Credit Spread on VF Corp (NYSE: VFC) “Buy to Open” May $110 Put and “Sell to Open” May $120 Put Option Symbols: VFC120519P110 and VFC120519P120 Limit Order Price: Net credit of $2.05 or more ($205 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin […]… Read More

1/10/12 Weekly Briefing: Volatility is Bound to Rise

The recent stock market rally and low VIX reading are surreal given global economic risks in 2012.
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1/5/12 Trade Alert: Automated Retailing Defensive Play

Sell Put Credit Spread on Coinstar (Nasdaq: CSTR) “Buy to Open” April $32.5 Put and “Sell to Open” April $40 Put Option Symbols: CSTR120421P32.5 and CSTR120421P40 Limit Order Price: Net credit of $1.90 or more ($190 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin requirement […]… Read More

1/4/12 Weekly Briefing: Put/Call Volatility Skew and Future Stock Direction

Academic studies have shown that when option traders bet that a stock is going to fall by bidding up the price of its out-of-the-money put options, they tend to be right…. Read More

12/29/11 Trade Alert: The New Mega-Cycle in Oil Services

Sell Put Credit Spread on Schlumberger (NYSE: SLB) “Buy to Open” February $52.50 Put and “Sell to Open” February $62.50 Put Option Symbols: SLB120218P52.5 and SLB120218P62.5 Limit Order Price: Net credit of $1.55 or more ($155 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin requirement […]… Read More

12/22/11 Trade Alert: Undervalued Oil Play

Sell Put Credit Spread on Apache (NYSE: APA) “Buy to Open” April $70 Put and “Sell to Open” April $80 Put Option Symbols: APA120421P70 and APA120421P80 Limit Order Price: Net credit of $2.30 or more ($230 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for Income Portfolio: Conservative Income Margin requirement […]… Read More

12/20/11 Weekly Briefing: Knowing Max Pain Provides Pleasure at Options Expiration

Academic studies prove that stock manipulation occurs during option expiration, which causes stocks to close (i.e., get pinned) at option strikes. With the right information, we can predict where the stock manipulators will push stock prices at expiration and profit.
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12/16/11 Trade Alert: Iron Condor Attempt No. 2

Please Note: This recommended trade only applies to those OFI members who already have positions in the Amgen bull put spread. Do NOT do this trade as an initial position. Sell Bear Call Spread on Amgen (Nasdaq: AMGN) “Buy to Open” January $67.50 Call and “Sell to Open” January $62.50 Call Option Symbols: AMGN120121C67.5 and […]… Read More