Patrick's Rants



10/8/2012

YHOO Final Score

Filed under: Money,Stocks — site admin @ 6:49 am

For some reason I was too busy to post last week when I bought back my YHOO 16.00 puts for $0.30. With commissions, the position was closed at $40.76. I opened this for $89.23 after commissions. Profit percentage just on the options is 118%, but to look at this properly one should calculate from the cash required to open the position: in the IRA, it’s 1600. That works out to 3% for three months. Not great, unless you compare it to just a straight savings account and approximately 12%/yr is not too bad.

I did immediately open a new position of the $15 April put. It’s a little far out, but I was trying to reduce my overall amount at risk, $1600 to $1500, and it was April that offered close to $1.00. Sold for $0.95. It’s a similar return to the 16 puts just closed out if it expires worthless.


I’m doing this in my own account, this is for entertainment and educational purposes only. I’m not recommending YHOO or any other stock. You have to make your own decisions

9/14/2012

All Out

Filed under: Money,Stocks — site admin @ 6:49 am

I closed my final 100 shares of CMRG yesterday at 4.50. For these specific shares, bought 11/30/2011 at 3.20 it’s a 33% profit for just under a year holding. Total CMRG returns are at 2.34% due to not having the free cash to continue trading the predicted trading range. CMRG did hit both sides of that range twice more since which would have helped my overall trading profits, but I’m good with what I received.


I’m now out of CMRG. This is just what I’m doing, what you do in your account is your own business.

7/23/2012

Stock Round Up

Filed under: Money,Stocks — site admin @ 8:58 pm

My calls on YHOO were in the money on Friday so I had 100 shares assigned away from me at $15.00. Looking back I bought these on 6/23/11 for $14.98 so before commissions it’s $0.02 profit… but the last calls I sold netted $113.23 after commission and the calls sold over this year netted $347.04. For the year that’s 23%, for the single sale it’s 7.5% in 5 months. There are several ways I could measure the profit percentage, but these two are probably the most reflective of owning YHOO for the year.

This morning I changed my strategy just a bit from my original plan and sold the YHOO Oct 16.00 calls for $1.00. While I do look at daily gyrations, I try not to let them cloud my judgement too much. I’m looking to close the position somewhere around $0.30 which will require a bump in YHOO’s price or a serious decline in time value or both. If YHOO recovers from this total market decline I might be able to close out of this position quickly, if not I will have to wait until October to see if YHOO trades around $15.70 with no time value on the options. This is a bit riskier plan as I am selling these puts in the money by $0.40, but most of the risk is in the decaying time value.


This is what I’m doing in my own account and is for illustrative and educational purposes only. Do your own research.

5/10/2012

Waiting

Filed under: Money,Stocks — site admin @ 7:39 am

I’m primarily just waiting for things to happen with my stocks. No major moves, no exciting pops. I did decide to add a little (7% annual) dividend income to my account and bought 2 shares of JNK for the few cents worth of dividends per month (JNK qualifies for commission free trades in my account so 2 shares or 2000 shares makes no difference in trading costs). I’m also hanging on to my shares of VG, YHOO, ANH, and CMRG that I’m holding. I’m selling covered calls on YHOO so I have to wait for the price to come down on the options, the shares to close under $15 at expiration or to be called out. With YHOO, I’m inclined to be called out and then start selling the puts and use the unused cash for my other stocks.

VG has really been slammed, but no real negative stories on it, still has positive numbers and really low P/E. It hasn’t done what I want so I might have to rethink whether to buy it again if and when my sale price gets hit. In the meantime, I’m just holding and waiting. I might also review the calls when the price gets back above $2.40 if I don’t happen to just close the trade.

My current holdings of ANH are too low to trade. I only have 25 shares and commissions would eat any profit so I’m just taking in the quarterly dividends currently around 12% annually. The 25 shares was done on purpose, I bought 225 shares on the last turn and got called out of the covered calls I was selling on 200 shares.


This is what I’m doing in my own account and is for illustrative and educational purposes only. Do your own research.

4/18/2012

VG On a Slow Boat

Filed under: Money,Stocks — site admin @ 7:27 am

VG did not make the quick move that I thought it would so I’m waiting. The waiting is really the hardest part. This is the part where I practice patience. There is the gap on the chart that I’m looking to see filled, but long term the trend is actually slightly down. How low can it go? Theoretically zero. It’s trading at a 1.9 P/E. That is extremely low, but there doesn’t seem to be a ton of confidence in the price – at least right now.

Just watch and wait – and wait.

Correction: the P/E for VG is 1.23 according the TDAmeritrade this morning. I think it was around 1.9 when I purchased it.


Disclaimer: I own some shares of VG, this is what I’m doing in my own account. What you do in your account has nothing to do with me, I’m not recommending that you buy VG or any other stock on this site.

3/9/2012

VG

Filed under: Money,Stocks — site admin @ 8:09 am

I bought 300 shares of Vonage at $2.24, looking for a one day pop to $2.50 if I’m lucky. If not, the higher payout is around $2.59. I’m leaning toward setting my sale price below $2.59, it’s not the high, but it’s been a consistent price point. Tech analysis of the chart shows a gap from 2.73 to 2.50. If you believe that “gaps are filled” then buying around this 2.24 and setting the sell order at 2.72 or so would result in $0.48.sh for just over a 20% gain.

The concept that gaps are filled doesn’t predict when, just that they are, eventually, “filled”. In the meantime, I’m looking for just over 10% and the chance to roll it a few times before the gap does get filled.


Disclaimer: This is what I’m doing with my money. Do your own due diligence, I’m not recommending any investment, yada yada.

3/8/2012

CMRG Results

Filed under: Money,Stocks — site admin @ 5:51 pm

I decided to adjust my roll range down $0.01 since the high on 2/17/12 was $3.39. I would have had another round trip trade @ $.31/sh if I had done that – but no matter. I sold CMRG today for just over 6%. Shares were bought on 2/10 so that’s a pretty good rate of return. I have a new buy/contingent sell order in for 3.08 to 3.39. Let’s roll! I’m okay with cranking out 6-7% monthly returns.


Rolling CMRG. Do your own research

2/28/2012

YHOO Today

Filed under: Money,Stocks — site admin @ 10:48 am

It’s a snow day and I’m watching my order to sell YHOO calls way too closely. I had an order in to sell the Jul 16 calls for 1.00. I adjusted that order to .85 today. Then I canceled that order and went for actual premium and sold the Jul 15c for 1.24. I will look to close this position below .30 if the price gets there with more than 30 days on the contract. So, three possibles: buy back the calls for less than .30 (depending on time remaining), let the calls expire – watching the time – get exercised at 15.00.


Disclosure: I’m long YHOO and writing covered calls

2/22/2012

YHOO Plunge

Filed under: Money,Stocks — site admin @ 7:54 am

YHOO has been hit pretty hard over the last week or so and I closed my Apr 15.00 calls at .60. Net of commissions I’m at a 96.76% cash rate of return on the options. If we look at rate of return based on the shares of YHOO held I have to pick a point to measure from. I bought these shares at 14.98, the calls were sold on 15.00, I’ve sold several calls already, etc. For simplicity sake the net premium collected is $0.68 per share. On the $15 strike that ends up being 4.5%. For just under 1 month. I don’t mind doing that a few times per year.

1/26/2012

YHOO Covered Calls

Filed under: Money,Stocks — site admin @ 9:43 pm

I closed out my Yahoo April $16.00 calls @ $0.87. I sold the calls for $1.50. Net of commissions I’m at a 42% gain. I’ve entered a new limit order to sell the April $15.00 call for $1.50. If that sells, an order to buy it back at $.75 gets entered. Before commissions that order is a 100% return if it gets entered and then closed out.
There are (at least) three potential outcomes if the April 15c sells:

  1. The second order never executes and I keep the $1.50
  2. The second order executes and closes me out at 100% gain (minus commissions)
  3. YHOO closes above $15.00 and I have to deliver the shares. (And I keep the $1.50)
    If this happens I will look to sell the $13.00 or $14.00 puts.

Disclosure: I’m long YHOO, selling covered calls.

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