Doctor Jack's Stock Medicine

[Jack Haddad]

Nem

Bought back the 2 blocks at 41.37 and this time I decided to go with writing 200 Nov 40 calls at 2.00/contract. I decided on “in the money” calls because I believe the stock is going lower. Since I want to accumulate it, any downside protection will be guarded by the calls. Also, holding the underlying shares pays a substantial amount of dividend.

[Jack Haddad]

Slb

Bought 2 blocks at 57.33 and wrote 200 oct 57.50 calls at 2.05/contract.

Sold the shares at 60.13 ans bought back the calls at 3.40/contract.

[Tatnic]

Sold the shares at 60.13 ans bought back the calls at 3.40/contract.

Interesting and profitable trade even if it was only a 2.5% gross return. Reminds me of a bull spread but instead of buying itm calls you buy the common and collect a dividend to boot. Your breakeven was at $55.28. What was your max. allowable loss had the trade gone against you..ie did you (or do you typically) set a max. absolute dollar loss before you enter the trade?

Also, wouldn't you agree that this was a very conservative trade when all is said and done? By that I mean your return was quite low but your potential loss was also quite low as compared to a straight bull call spread where you can lose all of your investment.

Lastly, is this a typical methodolgy for you? I find it interesting.

[WallStGolfer31]

Jack, you've forgot to put your newest articles!

http://articles.financialhub.info/INTC.html

http://articles.financialhub.info/INTC2.html

[Jack Haddad]

Slb

Interesting and profitable trade even if it was only a 2.5% gross return. Reminds me of a bull spread but instead of buying itm calls you buy the common and collect a dividend to boot. Your breakeven was at $55.28. What was your max. allowable loss had the trade gone against you..ie did you (or do you typically) set a max. absolute dollar loss before you enter the trade?

Also, wouldn't you agree that this was a very conservative trade when all is said and done? By that I mean your return was quite low but your potential loss was also quite low as compared to a straight bull call spread where you can lose all of your investment.

Lastly, is this a typical methodolgy for you? I find it interesting.

Yes, it's absolute returns versus relative returns in a very limited time frame-- 1 week.

[Jack Haddad]

Jack, you've forgot to put your newest articles!

http://articles.financialhub.info/INTC.html

http://articles.financialhub.info/INTC2.html

Thanks for the notice, Daniel.

[Jack Haddad]

Tol

Shorted 2 blocks of TOL at 30.09

[Jack Haddad]

Intc

Mark Lipacis, an analyst at Prudential, and Christopher Danely at JPM are both raising their 3rd quarter guidance to INTC’s mid-point range, citing that Intel’s microprocessor shipments in the third quarter came in at above seasonal rates.

[Jack Haddad]

Slb

Bought 3 blocks at 57.65, and wrote 300 Oct 57.50 calls for 1.75 contract. This is one of the juiciest premiums I have seen in little under two weeks left for expiration.

[Jack Haddad]

Tol

Shorted 2 blocks of TOL at 30.09

Covered 29.77

[Jack Haddad]

Tol

Shorted 2 blocks at 30.75

[Jack Haddad]

Tso

Bought 1 block at 56.50

Sold at 61.65

[Rob]

Sold at 61.65

9%+ in a little more than 3 weeks! Groovy, Jack!

[Jack Haddad]

Tso

9%+ in a little more than 3 weeks! Groovy, Jack!

Yes, I really don't like TSO at 63.00 when oil is below 60/barrel.

[Jack Haddad]

Tol

Shorted 2 blocks at 30.75

Covered at 30.01