Conservative option strategies, what did you buy or sell today?

[fenders53]

Been awhile since I updated this. I continue to sell a few puts every month.

Sold an ADM SEP 36 put today for about .85 This would be a starter position if I get exercised. In any event I received over two quarterly dividend payments in the form of premium for my trouble with the sale.

I was a little early selling puts on MMM and CAT. The entry price doesn't look as attractive now so I will roll them forward a time or two and get it closer to where I would currently like to enter. I want to sell a Deere put at some point but two industrials is enough to manage know. I don't see DE running much for the foreseeable future.

Same with selling calls on HD and APPL. I sold calls way too low and have been rolling them forward for months. It generally works out in the end but it's a hassle and very little if any new money made each month when you blow the timing real bad.

[crimsonghost747]

I'm still stuck juggling calls with both WBA and INTC. Horrible timing with both but so far I've managed to squeeze out some cashflow each month.
Also sold some BAC puts with a strike of $26. I don't mind getting these assigned, though the plan is to see them expire worthless.

[fenders53]

(08-21-2019, 01:58 AM)crimsonghost747 Wrote: I'm still stuck juggling calls with both WBA and INTC. Horrible timing with both but so far I've managed to squeeze out some cashflow each month.
Also sold some BAC puts with a strike of $26. I don't mind getting these assigned, though the plan is to see them expire worthless.

I caught CSCO pretty low for a put sale.  Other than that am building a little cash.  I finally have full positions in some of my favorite income plays from the past year.  I think I'll wait for some significant volatility.  US elections will be heating up soon and that should inject some random fear in sectors.  As if the trade war rhetoric wasn't enough.  You just never know who will be targeted next.  It seems to be a new sport.

[crimsonghost747]

(08-21-2019, 01:58 AM)crimsonghost747 Wrote: sold some BAC puts with a strike of $26. I don't mind getting these assigned, though the plan is to see them expire worthless.

Decided to buy them back today. Not a massive gain but the time decay was only going to be a couple of dollars per day per option so I decided that it's not worth the risk.

[fenders53]

(08-22-2019, 10:00 AM)crimsonghost747 Wrote:

(08-21-2019, 01:58 AM)crimsonghost747 Wrote: sold some BAC puts with a strike of $26. I don't mind getting these assigned, though the plan is to see them expire worthless.

Decided to buy them back today. Not a massive gain but the time decay was only going to be a couple of dollars per day per option so I decided that it's not worth the risk.

That's the smart way to play it when income is the true goal.  If you sell a put and get 75% of your possible premium in a week or so, that means there is a better opportunity out there.  Sometimes that better opportunity is merely the same stock at a different strike and expiration date.

[fenders53]

It's been an OK, not great month or two with the conservative strategies. Puts are still easy money as long as I only sell them on market dips. They continue to expire worthless 90% of the time. Covered calls another story. I lost my HD and XEL shares right before x-div. I was caught snoozing on XEL or I could have easily rolled it forward. AAPL will likely be next unless it pulls back soon. So back to selling puts for re-entry, but not at these levels.

Any thoughts on WM? That's the core holding I never pulled the trigger on all these years. I think I may wade in this week with puts. It's a pricey stock so maybe roll it down a few months if I don't just collect premiums which has mostly been my MO this year. I have a ton of cash so I am shopping this next dip, whenever it comes. The Twitter King will help me out soon enough lol.

[crimsonghost747]

(09-14-2019, 08:54 AM)fenders53 Wrote: Any thoughts on WM? 

It's certainly a lovely industry to be in nowadays. I've  been looking at WM once in a while but never pulled the trigger either. Also keep in mind that while it is the most well known player in the industry (at least from what I've seen) there are alternatives out there.

[fenders53]

(09-14-2019, 12:45 PM)crimsonghost747 Wrote:

(09-14-2019, 08:54 AM)fenders53 Wrote: Any thoughts on WM? 

It's certainly a lovely industry to be in nowadays. I've  been looking at WM once in a while but never pulled the trigger either. Also keep in mind that while it is the most well known player in the industry (at least from what I've seen) there are alternatives out there.

Yes, they have many competitors, and the few I have looked at seem to trade together as a sector with similar growth rates and near identical PEs.  I'll check a few out and maybe start a thread as he option forum doesn't get too many views.

[fenders53]

Finally put some of my excess cash to work the past few days. Sold one or more put contracts in LMT-MMM-CSCO-AAL-F-MRK.

I was definitely a little nervous pulling the trigger on LMT. That's a big boy trade for my port. It would be the largest individual stock transaction I've ever made. 375 strike price so I'm probably just collecting a big premium.

[NilesMike]

(09-26-2019, 09:55 PM)fenders53 Wrote: Finally put some of my excess cash to work the past few days. Sold one or more put contracts in LMT-MMM-CSCO-AAL-F-MRK.

I was definitely a little nervous pulling the trigger on LMT. That's a big boy trade for my port. It would be the largest individual stock transaction I've ever made. 375 strike price so I'm probably just collecting a big premium.

Definitely a big boy trade!
Good luck with the puts.

NOV ??

[NilesMike]

I don't know if the group thinks this is a conservative option trade or not. Let me know.

It's been a staple income generator. SPX Iron Condor. 12 Delta, 25 wide wings. 66DTE. Exit is down 200% of credit received OR 50% of credit received OR 33 DTE. Whichever comes first

[fenders53]

(09-26-2019, 10:02 PM)NilesMike Wrote:

(09-26-2019, 09:55 PM)fenders53 Wrote: Finally put some of my excess cash to work the past few days.  Sold one or more put contracts in LMT-MMM-CSCO-AAL-F-MRK.

I was definitely a little nervous pulling the trigger on LMT.  That's a big boy trade for my port.  It would be the largest individual stock transaction I've ever made.  375 strike price so I'm probably just collecting a big premium.

Definitely a big boy trade!
Good luck with the puts.

NOV ??

Yes most of the expirations are NOV.  A few are weekly because my work schedule just makes it too hard to manage excessive positions with the same DTE if I end up having to roll forward.  Your SPX trades are conservative enough IMO.  More conservative than mine.  I have about ten stocks I know pretty well.  I try to stay long and grab dividends but now and then I get called out, then rinse and repeat with a new put on the next dip.  It's surprising to most how much income you can generate with boring high div stocks that hang out in a predictable enough trading range.  

And the LMT put is worth $11,500 more than my first house I spent 12 years working hard and paying off lol.