Tagged: options

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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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KMI Covered Call July 2014

KMI Type: selling covered call Reasoning: As mentioned on the recent CSCO covered call sale, I also have greater than 100 shares of KMI within my Roth IRA. I have approximately 166 shares generating $279.39 a year in dividends ($69.85/quarter) and KMI next pays its dividend in August. My cost...

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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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May 2014 Dividends/ Option Income

Only three of my companies paid out this May, bringing in a total of $163.41. This is an improvement of 83% over what I received in 2013. The majority of this increase was due to substantially increasing my stake in Apple as well dividend increases by both AAPL and KMI....

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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...

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March 2014 Dividends/ Option Income

March was a great month for dividends with 12 of my companies paying out. In March I received a total of $258.07. This is a 149% increase from the $103.64 I made in 2013. I made $59.46 in 2012 and $22.57 in 2011. This is the exact kind of trend...

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AMZN Bull Vertical Put Spread

As much as I love writing about the winners, you can’t have those all the time. So goes the case with a recent bull vertical put spread on Amazon (AMZN). Three days prior to option expiration, I decided to pull the trigger and give another credit spread a try. My...