5 results for month: 09/2013


GE Update, trading Gold?

Today, our 500 share GE covered call position is showing a profit YTD of $782. We are enjoying a daily time decay (theta) income of $4.20. We decided to try and add to our position today by selling another put. That order is still open and has not filled. Subscribers get the details of this trade. What about Gold? There is huge trading volume in the GLD, which tracks the actual price of gold.  We also find large volume in the GDX, which is the gold miner's ETF. Options volume is very high in both of these names. It seems that there would be great opportunities to trade these symbols and their options. We haven't found it to be profitable - and we ...

GE goes ex dividend, we collect another payment

GE went ex-dividend today, so all stockholders will collect the dividend of 19 cents a share. Our 500 shares get $95.Our position is now a covered call or long 500 shares GE and short 5 Oct 24 calls. Our daily theta (time decay) is now about $4 a day, or $120/mo. We are up about $845 since April, or about 7%. Annualized it's over 14%. The best thing to do now is just leave this position alone and collect our $4 every day (including weekends!).GE had fallen into a Bear market about one month ago, but that now appears to be changing. We have crossed back into Bull territory and for now we expect GE to remain strong. It would not be unreasonable to sell ...

GE rockets higher, 14% profit!

Today, the Fed shocked the market with it's "no taper" announcement. I think they are trapped. The economy is not good enough for them to taper the purchases, but what if these purchases are partly the cause? What if the economy can't get better until they stop the insanity? I think they want to stop the insanity, but now they are trapped into a box of their own creation. To follow up on our GE trade string: Today's large market move has resulted in a large move upward for GE, now trading at 24.83. Yesterday, we did go ahead and sell another Oct 24 call at 65 cents, and then sold another earlier today for 75 cents. The current position is long 500 ...

Building a GE covered call

First, let's update the GE position.Today, our P/L YTD is at $695. Daily Theta (time decay) is $1.35. We have one Oct 24 call for sale at 70 cents, currently priced at 66 cents. I almost always enter my order price at somewhat better than the market and wait for that extra few dollars. Here is the thought process:I own 500 shares of GE and right now I have sold 3 Oct 24 calls against those shares. I want to maximize the daily time decay and I can do that by selling as many calls as possible. GE is up over 1% today so it's a very good day to be selling calls. If you take a look at the GE options, it is clear that there are many choices. GE offers ...

The Blog Returns…..

We are finally ending our long hiatus from the Deeppocketoptions blog. Please read along and send your comments. Let's start by updating GE. At last look, almost 7 months ago, GE was around 23.22 - it is now trading at 24.20. A holder of 100 shares GE would have made about one dollar but ONLY if that trader was smart enough to buy at 23.20 in February, hold on to it, and then sell it today. Along the way, the holder of those 100 shares would have seen them drop to 21.11 in April, and again would have had to make the right decision to hold on. That is a lot of decisions that must be correct, all at the proper time, to make a little money. Our option ...