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Credit spread Archives - Options Trading Strategies for Consistent Income - OptionPundit

A Credit Spread on Edwards LifeSciences (EW)

By | Credit Spreads, Trade Ideas | One Comment

Edwards Lifesciences Corp (EW) announced stock split which is Payable n May 27, 2010 (x date May 28, 2010). I earlier shared (for free) a credit spread on Silgan Holdings (SLGN) that we closed for +39.% gains. EW is another stock that fits my criteria for playing stock split. For those who don’t know about Edward LifeSciences, here is 2 line intro from Yahoo finance- Edwards Lifesciences Corporation provides products and technologies designed to treat advanced cardiovascular diseases. It offers products and technologies for heart valve therapy, critical care, cardiac surgery systems, and vascular diseases. The Basic concept is that…

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How to Play $100 Buyout of BNI?

By | Credit Spreads, Option Trading, Option Trading Strategy, Trade Ideas, US Market | No Comments

Warren Buffett’s Berkshire Hathaway (BRK.A) said Tuesday that it will acquire the remaining shares of railroad operator Burlington Northern Santa Fe (BNI) that it doesn’t already own for $100 per share in cash and stock in a deal valued at approximately $44 billion. “Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Berkshire CEO Warren E. Buffett. “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry.” “Most important of…

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Google (GOOG)- A Bearish Play

By | Trade Ideas | One Comment

It was an intense sell-off day with down volume accounting for over 90%. All of the major indices have now broken and closed below their September 25th lows and their uptrends dating from the July 8th. Chicago PMI had already provided hints that things aren’t that rosy yet. But hey, who knows. This might be a short term pull back, to quench the bears’ thirst, before new advance resume. Whatever your outlook is, play it cautiously. Usually not many traders want to play bearish trades on Google (GOOG) but sometime one has to take a chance. Based on current market…

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A Record Month OPN (Jun’09) up +14.7%

By | OP Newsletter, Option Trading, Past Performance | One Comment

June 2009 was a record month (2009) for OPNewsletter! Overall June’09 OPN is closed up +14.7% (x- brokerage commissions) and +12.1% (including commissions). We invested almost 60% of 10K assumed capital across various sectors and diversified strategies. All the portfolios were closed positively. Overall an excellent performance that was almost double the OPNewsletter objective of 5-7% per month. Here is an update by individual portfolio- GDX was closed for +5.15% UPS was closed for +8.9% X was closed for +13.85% RUT was closed for +23.08% DIA was closed for +22.89% IWM was closed for +26.07% This doesn’t include returns on…

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OPNewsletter – May’09 (+9.48%), Jun’09 (Open)

By | OP Newsletter, Past Performance, US Market, Worldwide Markets | No Comments

OPNewsletter closed May’09 for +9.48% x-commissions and +6.76% inclusive of commissions. As I stated earlier, after many months of waiting, we crossed our 60% portfolio investment target. It’s always an advantage if the capital was preserved. Yes we did have a few months of low returns, but that preserved capital is an out performance (vs general markets) already and now we can start using this preserved capital for further gains vs. wasting energy in recouping the losses. Just 1 single covered call (X) was more than enough to cover OPN fee  (and triggered no adjustment needs). Sign-up for the OPNWaitlist…

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OPNewsletter : May’09 (+11.2%), Jun’09 (Opening Shortly)

By | OP Newsletter, Option Trading, Past Performance, US Market | No Comments

It feels great when a single covered call option spread (done only @ 7.3% of 10K portfolio) can deliver OPNewsletter monthly subscription fee, cover commissions and still deliver profits, without making adjustments throughout the holding period. And what if the newsletter doesn’t get a single cent if doesn’t deliver profits? Welcome to OPNewsletter (A “No Profit, No Fee” Newsletter)! It is up +11.2% (x-brokerage) and +8.5% including commissions for May’09 alone (a 16th positive month out of 17 months.). As I stated earlier, after many months of waiting, we crossed our 60% portfolio investment guideline. It’s always an advantage if…

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