Publications

10/17/11 Weekly Briefing: Remaining Cautious on the Market

Bear-market rallies should not be confused with new bull markets.
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10/13/11 Trade Alert: Everybody Needs to Eat–UPDATE

(updated with trade rationale) Sell Put Credit Spread on Deere & Co. (NYSE: DE) “Buy to Open” December $55 Put and “Sell to Open” December $62.50 Put Option Symbols: DE111217P55 and DE111217P62.5 Limit Order Price: Net credit of $1.20 or more ($120 per spread) Directional View for Underlying Stock: Neutral to slightly bullish Options for […]… Read More

10/13/11 Trade Alert: Everybody Needs to Eat–UPDATE

One of the largest agriculture companies in the world enjoys strong consumer demand and tax benefits.
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10/11/11 Weekly Briefing: How’m I Doing? — Portfolio Evaluation

Despite the bear market that has been in force ever since Options for Income launched in late April, the OFI Portfolio of stocks has outperformed the S&P 500.
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10/11/11 Weekly Briefing: How’m I Doing? — Portfolio Evaluation

Despite the bear market that has been in force ever since Options for Income launched in late April, the OFI Portfolio of stocks has outperformed the S&P 500.
… Read More

10/11/11 Trade Alert: China Roll

1. Vertical Roll on NetEase.com (Nasdaq: NTES) “Buy to Close” October $48 Put and “Sell to Close” October $41 Put and “Sell to Open” March $48 Put and “Buy to Open” March $38 Put Option Symbols: NTES120317P48 and NTES120317P38 and NTES111022P48 and NTES111022P41 Limit Order Price for four-legged vertical roll: Net credit of $0.75 per […]… Read More

10/11/11 Trade Alert: China Roll

Better to roll this in-the-money put spread now and avoid further time decay…. Read More

10/6/11 Trade Alert: Bear Call Spread Hedge

Sell Call Credit Spread on SPDR S&P 500 (NYSE: SPY) “Buy to Open” November $131 Call and “Sell to Open” November $123 Call Option Symbols: SPY111119C131 and SPY111119C123 Limit Order Price: Net credit of $1.25 or more ($125 per spread) Directional View for Underlying Stock: Neutral to bearish Options for Income Portfolio: Downside Protection Hedges […]… Read More

10/6/11 Trade Alert: Bear Call Spread Hedge

OFI’s “Downside Protection Hedge” portfolio is born! If this trade loses money, all of our other bullish trades will make much more.
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10/4/11 Weekly Briefing: Trading Alpha Options Neutralizes Bear Markets

The US economy is headed for a recession and that requires a completely different mindset for trading options. Also read about a new type of call option that can rise even when the underlying stock falls…. Read More