Category: Options

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Put Option on CREE

CREE Type: naked short put Margin requirement (as of 8/4/2014): $457.50 (While this is technically a naked trade, I have the available funds if I were to be assigned. CREE is a growth stock that I wouldn’t mind owning.) 08/04/14 STO 1 CREE Sep20 2014 40.0 Put @ 0.52 Comm...

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July 2014 Dividends/ Option Income

Last July I only made $17.51, as CSCO was the only stock that I paid. This year I received a total $99.93, an approximately 470% increase. (CSCO alone accounted for $20.16 of that amount.) This amount brings the year total up to $1111.06. Last year I made $1132.01 in total...

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$1.50 options trades in dough

Update 3/30/2017: tastytrade just released tastyworks, their own options trading platform with $1 commissions and $0 to close. I’ve recently been getting some questions about how I am able to get the discounted commission rate of $1.50/contract from TD Ameritrade and dough. Rather than respond to each individually, I’ve decided...

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Put trades on WFM and COH

In early July I closed my LULU option for a nice profit. Rather than let the money sit idle, I decided to open some more put trades to generate income. I chose two stocks with a high implied volatility (IV) to obtain higher premiums. Both stocks tend to have relatively...

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June 2014 Dividends/ Option Income

June has been a huge dividend month for me. Last June I made $143.66; this year I brought in $295.02, a 105.4% increase. This amount brings the year total up to $1011.13. Last year I made $1132.01 in total and I am already almost at that 6-months in. I also...

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2014 Mid-Year Review

Wow! I can’t believe that 6 months have already passed. The time sure does fly. In this post I want to look back at my 2014 Goals and gauge how I’m doing so far. Goals for 2014: 1) Max Roth IRA ($5,500) as soon as possible Passed. While I didn’t...

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CSCO Covered Call June 2014

CSCO Type: selling covered call Reasoning: I’m trying to generate some additional income. CSCO pays its dividends in January, April, July, and October. They pay just over 3%, meaning that I’m generating just over $20 per quarter in dividends (with my 106 shares). My current cost basis for CSCO is...

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LULU Earnings Play

Unlike LULU’s pants, apparently their earnings are harder to see through. On 6/11/2014 I opened a trade on LULU. LULU was set to announce earnings after the close of the market on the 12th. At the time, LULU was trading around 44.30 and had a high implied volatility leading up...

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IWM, DIA, NFLX Options Trades

I wanted to quickly recap a few of my ongoing options trades. My current and past options can be found here. In the future I’ll document each trade as its own individual post. Until then, I’ll update these as things change. Due to how the market had rallied and slightly...

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The Illogic of Active Trading – My Take

While we don’t know exactly why people are trading, Joe Kinahan, chief strategist at TD Ameritrade, made it pretty clear in an earlier news release: “Our clients have been dialing up equity market exposure and participating in the rally every step of the way.” In addition to all this trading...