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

[fenders53]

Don't push any trades, option or otherwise. You know my #1 rule all too well. Rule #2 is never do today what you wish you had done yesterday (or last week or month). Quite possibly more important than rule #1. The market WILL come back to you soon enough. It's undeniable that world growth is currently slowing and earnings will stagnate for awhile. A trade deal is expected with China soon and the market may run some more. Within days the talking heads will analyze it to death and conclude China has a longer term strategy than we do with an election season about to start. Who knows what our prez will do to try to juice the economy further. He closely follows the SP500 as a metric of success. He knows 401K balances matter when it's time to vote. We are on pace for an up 40% year. That is not going to happen. Nothing justifies anything like that outcome. It would be the mother of all bubbles.

[fenders53]

I have the day off so I can trade. A few on my buy list are looking OK.

I have always wanted to add UNH and now looks like "the time" with the "Medicare for all bill (noise IMO), a law that will never pass when we do the math as a nation.

Options are volatile so went a little conservative to start. Sold a MAR 8 $235 put at $117 after fee. That's only 4 days so the annualized option income is pretty meaningless. I am OK with this entry point. I'll reach out a little farther if UNH takes a breather from it's drop which is 100% political noise. That's a $23,500 stock purchase. I don't rule out dumping a few shares at a small profit if it exercises. I'll just be patient if that would be a loss. I don't rule out the possibility UNH dips another 10% from here, though I view it as very unlikely. IMO this is a $300 stock with less political noise. Still, I am not in denial. A $23.5K trade is pretty ballsy in my port.

[fenders53]

Ok, so selling covered calls on most of your port has a potential downside. What good are you guys if you don't warn me the market is going to run up for 10 weeks and counting? I thought Great Depression II was coming?

Seriously though, I put myself in a tight spot the past few months. Sell a call for $200 and then buy it back a month later for $1000, then try to find an appropriate new future call to sell immediately at a strike price and date you like, and get your money back for now. I tap danced my way out of MO, BAC, HD with no harm done because they eventually took a breath. I am a jam with AAPL right now. I'm not losing money, but it's been a BIG hassle to keep my shares for sure. The put selling income game is working fine of course, because the market is up. A chimp could make income selling puts right now.

[crimsonghost747]

Guess it's time for a little update from me.
Sold a put that expired worthless last week. Super safe one with UBNT, I think I gained around $90.

Still holding those WBA shares, no calls sold on them currently since it just makes no sense. Once I start to get some premium on weekly / biweekly calls with a strike between $65 and $70 then it's time to start selling those and hoping that one day I get to exit with a profit. A great example of a decently priced company with a great history that just decides to go down over 15% in a couple of days right after I put my money in. This is definitely not an effective use of money.

Covered call in AMAT expiring on the 22nd, strike of $39.50.

[fenders53]

(03-16-2019, 12:59 AM)crimsonghost747 Wrote: Guess it's time for a little update from me.
Sold a put that expired worthless last week. Super safe one with UBNT, I think I gained around $90.

Still holding those WBA shares, no calls sold on them currently since it just makes no sense. Once I start to get some premium on weekly / biweekly calls with a strike between $65 and $70 then it's time to start selling those and hoping that one day I get to exit with a profit. A great example of a decently priced company with a great history that just decides to go down over 15% in a couple of days right after I put my money in. This is definitely not an effective use of money.

Covered call in AMAT expiring on the 22nd, strike of $39.50.

The time of the covered call shall return!  Surely sometime soon lol.  Your WBA story is about the same as my new CVS position.  They have completely missed the bull run of late.  I won't say I won't ever sell a covered call with a strike under my cost basis, but I will be more wary.  It's better suited for stocks like KHC, or anything range bound with little chance of an upside explosion.  I'd try it on CVS if it climbed near my entry price.  CVS and WBA are too undervalued IMO to try it now.  I seriously may have to fight for six more months rolling calls forward to keep my AAPL shares.  If it runs another $20 fast I might as well let it go.  You can only get so much money back selling time. The market is acting like AAPL is about to blowout earnings.  I highly doubt that since the analysts were still downgrading them six about weeks ago.  The market is such a game in the short-term..... a game like roulette comes to mind.

PFE has become one of my consistent easy income plays.  I end up selling a put several times a month and they have expired worthless every time. as long as you sell the put on a dip.  I still sell Ute puts but backed way off on that.  I'm not going to get stuck with 10 separate contracts of over priced Utes.  As much as I like them, they are no longer a bargain. I don't want to nullify all the income I've generated with a bad entry.

I would love to sell a BA put as the premiums are extremely good, but I think that would be a gamble considering the price of 100 shares.  That has to be the result of the big institutions buying insurance against their huge BA positions.  The put volume is crazy high.  I'll probably just buy some shares long and call it a day.  That would be MUCH more tempting under $350.  I don't like the risk-reward from right here.  The airline world is going to ask BA for compensation soon.  They'd be foolish not to.

[NilesMike]

Sold puts in BWA
17MAY19 35P for 1.10

Hoping to be put for cost of 33.90 which would be a 2.0% yield, near historic high and P/E <8.15, also near historic lows

[fenders53]

Haven't done it yet, but I am thinking some of the financials are about to be decent put sells.  JPM may be into range.

[fenders53]

Nevermind the JPM for now. Just sold a PRU 17MAY19 85 for 1.85

Made a few previous attempts to go long in PRU and just made money on expired puts. I am long MET now but the PRU DIV is better at 4.45% and more like 4.7% if it hits the strike price. PRU AND MET SP trades lockstep.

[fenders53]

Sold a UNH Put APR 18 $235 strike for $4.00 That is over 1 1/2% premium for about three weeks and I am good with owning UNH at $235

Bought my MCD APR 177.50 put back early for a very nice 3 week profit to fund the UNH.

Sold a BWA May strike 35 put as well. Thanks for the heads up Mike. That one looks real good.

[crimsonghost747]

Sold a Tesla put for the 29th. Strike of $245.
Definitely not a conservative one but it's an option trade. :p

BAC looks interesting. But this Tesla trade is way above the amounts that I usually trade with so I'll wait for this one to expire before making any other moves.

[fenders53]

(03-25-2019, 10:46 AM)crimsonghost747 Wrote: Sold a Tesla put for the 29th. Strike of $245.
Definitely not a conservative one but it's an option trade. :p

BAC looks interesting. But this Tesla trade is way above the amounts that I usually trade with so I'll wait for this one to expire before making any other moves.

Well TSLA options should be exciting enough lol.  If I was going to play it would be very short term like you dd.  BAC is safe enough down here, but the premiums are usually lousy.

[NilesMike]

I was considering doing an extensive study on TSLA and see if I could just trade the underlying profitably. It does move plenty, anybody watching it that closely?