SKF Archives - Options Trading Strategies for Consistent Income - OptionPundit

OPN Apr’09 +12.5%, 15th Positive Month (Out of last 16)

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

Get ready for an action filled week that has lot of economic data flowing in, traders returning from holidays and banks announcing earnings. Of course, Banks have to have positive impact due to “relaxation” in Mark-to-market accounting rules. This week is also flooded with other earnings and option expiration schedule, an excellent environment for exceptional opportunities. April was another winning month for OPNewsletter. 15th out of last 16 months. In spite of the whipsaws we observed, this month didn’t require much adjustment, almost sitting idle generating cash for OPN trades. OPN has successfully rolled over the portfolios for May holdings…

Read More

SKF Smiling Flies, +100%

By | Option Expiration, Past Performance, Trade Ideas | 2 Comments

The free trade idea on SKF resulted in +100% gains. First starting with FDX and NKE, I had these puts from the starts but even those who followed the notice and decided to follow the trade must have benefitted as well. Then I shared smiling butterflies on SKF, High Risk High Reward Trade, and it closed for +100% gains for one day holding. NKE was pinned at $45 (GS, AAPL, and POT weren’t really pinned this time). Though I identified GOOG pin at 330 in the beginning but I was biased for it move closer to 325 or 335 and…

Read More

Smiling Butterflies for SKF

By | Option Expiration, Trade Ideas | 6 Comments

As I mentioned in my earlier post, an expiration Friday is a Thrilling Friday full of opportunities but mostly speculative. Intrinsic Value driven by Time Value and Implied volatility reduces to almost zero and creates powerful leveraging instrument. On an expiration day 100% of returns are not unusual. In fact I am yet to break my record for +1,200%. If one can accurately estimates pinning points, butterflies usually offers one of the most rewarding trades. I decided to take chance on SKF expiration and play speculative strategy, High Risk High Reward. (You may want to sign-up for the Basic Membership…

Read More

Thrilling Expiration Friday

By | Daily Report, Option Expiration | One Comment

Too much to handle for the week which slowed down the postings this week. What a “Rambo Fed” action that was (I was looking for a picture replacing Bernanke with Stallone but gave up after a few searches). But guess what, was this really surprising, I don’t think so. Uncle Ben has already made this clear long time back.To find out what other tools Uncle still has in his magic box, you may want to read his speech delivered on Nov 20, 2002. For those who would like to know more deflation etc this does make a good reading. This…

Read More

Citi, Uptick and Mark-To-Market

By | Daily Report, Market Psychology, Technical Analysis, US Market | No Comments

So we had it finally. The pressurized spring bounced back and shorts were pressed against the wall to cover. Fantastic rally by all means, it was easily qualified as a 90% Upside Day on both the NYSE and the NASDAQ that too on expanding volume. Market breadth was also much more impressive during yesterday’s rally. I had never thought (Probably Vikram Pandit as well) that his letter to Citi (C) employee can spark such a massive global stock market rally. In fact there were 3 things of note yesterday. Citi CEO’s letter. Reimpose the uptick rule (An untick rule is…

Read More

A Covered Call with Ultrashorts

By | Investment Strategy, Option Trading, Trade Ideas, US Market | One Comment

It is generally assumed, and rightfully so, that Ultrashorts SRF, SKF are not for everyone, those are highly volatile and average investors should stay away from those. However, I think, if managed properly, these can also be valuable tool to generate passive income. Firstly, let’s look at the 2 popular ultrashorts SKF, SRS. Attached charts are pictorial view of how volatile these stocks are. SKF (Ultrashort Financials) has a trading range of $100 to $300 and SRS (Ultrashort Real-Estate) from $50 to $250 and intraday movements are good enough to stir stomach muscles. As such general markets are speculative these…

Read More
DISCLAIMER AND NOTICES: None of OptionPundit or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial advisor, a registered investment adviser or a registered broker/dealer. Options involve risk and are not suitable for all investors. All investors who deal with options should read and understand the publication "Characteristics and Risks of Standardized Options." A copy of this publication can be obtained by clicking on this link. OptionPundit does not promise, guarantee or imply verbally or in writing that anything taught through our newsletter, in any printed material, or displayed on our website will necessarily result in a profit. OptionPundit is the copyright owner of all text and graphics contained on this website. Copying, publishing or redistributing any material in any way without the written consent of OptionPundit is strictly prohibited.The owners, publishers, and agents of OptionPundit are not liable for any losses or damages, monetary or other that may result from the application of information contained within this website and/or newsletter. Within this website, we publish materials that meet specific criteria representing characteristics associated with described trading strategies. Individual traders must do their own due diligence in analyzing featured options to determine if they represent a suitable opportunity. OptionPundit and any of their agents, affiliates, representatives, employees, principals, business associates or affiliates, partners or independent contractors are not responsible for any losses or profits that may result from the application of information contained within this website and/or newsletter. Past performance is not indicative of future results. Option trading involves substantial risk. You can lose money trading options. The past results posted on this site are meant to give you a reasonable idea of what you could have made or lost trading by following the OptionPundit service but are in no way an exact reflection of what you would have made or lost. Therefore, you should not rely on our past trade results as a perfect replication of what your returns or losses would have been by following our service. There are inherent risks involved in the stock market and these risks should be considered prior to any decision. The representatives of OptionPundit may or may not hold a position in any stocks listed at the time of publication and reserve the right to buy or sell any security, option, future or derivative product without notification. Nothing published by OptionPundit should be considered personalized investment advice. Although the OptionPundit team may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by the OptionPundit team to you should be deemed as personalized investment advice. OptionPundit products are delivered electronically by email and by access to a membership area where trade alerts and special alerts are posted. ©2015 OptionPundit. All rights reserved. Terms of use apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law.