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Archived Trades

Negative Day, WOW

So what do you do with a negative day? We evaluate our positions and make sure we are where we want to be. It’s a good day to dollar cost average, it’s a good day to sell some PUTS if the stock moves down and it’s a good day to see opportunity open the door to a rebound. We see today as selling for tax reasons. We don’t have an issue of less business, the economy is showing strength and so we move to take advantage where we can. It is for this reason that today we are selling some QCOM puts, we are selling the January 3rd, 87 and the 86’s.  Last week we sold the 88 and the 87 and both were winners. We also see a slight pullback in FB and we are selling the January 3rd, $202.50 PUTS. We believe we will see continued growth due to the political ads flowing through FB long term.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Is the Hype worth the price?

QCOM is the firm that is projected to profit from the explosion of 5G. As a chip maker that focuses on the wireless market we believe that QCOM is set to take advantage of the 5G market. As most of its revenue is on patents we believe they will be acquiring additional revenue as new devices come online, as the gaming community continues to grow, and as even the layman wants more speed.  We are selling the December 27, $88 PUTS and the December 27 $87 PUTS.  If the stock is PUT to us we will be dollar cost averaging. If only the $88’s are PUT we lower our cost basis with additional premiums from the $87s.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Mac or Microsoft?

A number of years ago I bought my first Mac, however I quickly learned that some programs will not work on my Mac.  So I still use Windows based computing programs. With this in mind we see that AAPL is near it’s high and so is MSFT. We believe that MSFT will continue to grow based on services they provide known as hybrid cloud services and they are dominating that market. As we see a slight decline we are selling the December 20, $155 Puts. The positive news out should push the stock back up. It’s currently $154.60.  As for our love of Mac we continue to be a fan of AAPL, so we are selling the December 27, $280 for $2.70. This puts us in AAPL at $277.30. We find AAPL is well financed to support their dividend as well.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Tip Toe In!

As we are at year’s end, you should be looking to tax manage your account. In other words selling losers (if you have any) to offset winners. For those of you who have been concerned about staying in the market or getting in at these levels we make the following suggestions. For those of you that hold stocks you may want to continue to sell calls against your positions. For those of you who have had some concerns about entering at this level we suggest selling PUTS one week at a time, roughly 5% below the current price of the stock.  This allows you to get the stock at a lower price and get paid without actually owning the stock. We are holders of IWM (etf), AAPL, FB, QCOM, and NVDA to select a few. We continue to sell calls against these positions and we suggest that if you like these positions you sell PUTs 5% below the current price. We will see some selling as investors rebalance, tax harvest and liquidate for the holidays.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

No room for my legs and I’m under 6 feet tall.

The only reason the airlines can continue to get away with this is due to the heavy traffic. It seems that everyone wants to travel somewhere.  On a recent trip across the midwest I noticed that people are willing to put up with crowds and crowds are wanting to fly. It seems that young people are not concerned about retirement but the experiences of life. So rather than opt to start a Roth IRA they are traveling the world. It is for these reasons we are playing BA two ways this week. As this Friday is the 13th we approach with caution. We are buying BA at the $350 to $352 level and selling the December 13, 350 calls for $4.50 to $5.00.  We are also selling the December $340 Puts.  The put will bring you $70 per 100 shares and is the more conservative play as we don’t see the stock drawing back down that far.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Best In Show, the bulldog.

When you are picking team members you want the best available at the time. Now no guarantee that if you draft the best player that they will perform, however the odds are usually in your favor. It is for this reason we are looking at JPM, selling the December 6, 129 PUTS. We have a slight pullback this morning and we believe in JPM long term. We are also seeing some movement in FB, still a major player in the acquisition of information, especially all the advertising over the holidays, so we are selling the December 6, 195 puts. We have seen BA come down some but we believe the holiday travels will add to many bottom lines, so we are also selling the December 6,  352.50 Puts. You may ask why all puts at the moment, well we want the stocks we like to come to us. Being up above 28,000 on the DOW we are patient investors. Keep abreast of any changes during the week. As numbers come in from the shopping holiday we will take advantage of big moves either way.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Winning is a process!

Learning to do the same thing over and over can seem boring, but not when you make money doing it. Learning to use options is a process and learning the process can increase your 401K balances throughout the year. Last week we again had a full week of winners. It is the process that tells us to stay with our winners. We are selling the SLB $35.50 11/29 PUTS. We are looking to get .20 to .25 cents per share this week.  If we are PUT the stock we’ll be in it below the $35.50 mark.  We believe the stock will continue to float and provide continued option income. As many are rushing online and to the mall we are aware of expectations, so we are looking to those firms that profit from the event itself, such as FB and its advertising.  We are buying FB here at $200 and selling the 11/29 $200 calls for $2.00. A 1% return for the week. This puts us in the stock at $198, however we expect that by the end of the week you’ll be called away.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

Don’t Chase…

As the market reaches new highs we suggest you don’t chase the market. Look for opportunities that arise from earnings misses, market movements, and outliers . This is why we are selling the SLB $34 11/22 Puts. The stock has a 6% dividend and this would be a good entry point. For those that are still holding SLB we will look to sell the 11/29 .37 Calls as we see a rise in price off the morning low. Sell the Call around $34.75.  We are also looking in the mirror with FB. We previously got called away. So we are selling the 11/22 $190 puts.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

The Iranians find more oil, so how do they sell it.

As we see many move for the new green deal the price of oil remains low. We are not seeing the days of $100 per barrel. The lack of pricing has caused many companies to downsize, but oil is not the start up of the future. The companies that have been around for many years are navigating through this period of low prices. This is why we continue to like SLB. The dividend is north of 6% and oil is an inflation hedge, so companies that continue to support the industry with their expertise are few. We are selling the SLB $35 puts and we are buying the stock here and waiting for a slightly positive day to sell the calls against that position. We can see 2% movement in the stock on any given day. We are seeing that to the downside and are taking advantage of the drop in price.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.

The Consumer is strong!

The holidays are upon us and we are seeing the discounts come flying. All the retailers are looking to make their yearly goals by discounting, special hourly sales, and much more. This is also true for MCD. This morning instead of BOGO we see BOGO for $1.00.  This is subtle but adds to the bottom line. The all day breakfast is still strong. It is for these reasons we continue to sell PUTS on MCD. Our winners last week included MCD, so we are selling the MCD $192.50 for $1.01 . This puts you in the stock at $191.50. A good entry point down from $216 or so.

All investing involves risk, so Options Dojo can make no warranties or guarantees regarding our Sensei’s selections.  Invest with an awareness of your skills, experience and risk tolerance.  Options are not suitable for all investors and people can and do lose money.