Weekly Option Report – July 17, 2015

Rest on R & R Friday and Saturday.  Some Quick notes:

I completed a spreadsheet of China, Greece and Japan ETFs that I can use for long or short options trades.  It includes the following information:

ETF Name

Symbol

Index

Hedged Currencies

Net Assets

Dividend

Bid / Ask Ration - Option

Option

Option Liquidity

If you are interested send me a comment / note and I can send you the spreadsheet (using Google docs).

If you are interested send me a comment / note and I will send you my wheel of fun option strategy presentation (using Google docs).  I am looking for people to review it and me input.

If you have any investing please send me an email and I will help you develop an option strategy for your ides.

Until next week and have a great week trading.

Paul

Weekly Option Report – July 10, 2015

ASHR I sold my final option put options on July 6^th and July 7^th that I purchased on June 12, 2015. The closing price of ASHR was $55.20 on June 12, 2015 (the record high). When I sold my last put options on July 7, 2015 the price was $36.70 (loss of 34%). The lowest stock price since I purchased ASHR was $33.89 (loss of 38.5%) on July 8^th. The stock price of ASHR gained 27% over the next 2 days to close $43.25 on July 10^th.

I made a total gain of 168% for the 25 days of the ASHR short trade.

I will be looking for other opportunities to get back into the main land China stock market using the ETF ASHR either long or short. I love the volatility of the China main land stock market.

GLW

My June 19, 2015  $21 put was in the money and I purchased 4000 shares of GLW (I sold 4000 for $23 late in 2014 and have sold 4 different puts since January 1^St this is the first one to finish in the money). I am since trying to sell my 40 (4000 shares) call options at $21 or $22 30 or 60 days out. This will continue my wheel of fun strategy with GLW.

I am still trying to do a covered combination option strategy next week.  For example sell a GLW put at $20 and a call at $22 when I am long the stock.  It was something I was considering to add to my wheel of fun option strategy.

COP

COP stock went under $62 and I sold a August 21, 2015 $60 put for $1.90 when the stock price was at $60.21 on Thursday July 2, 2015 (current stock price $60.51) to re-start my wheel of fun option strategy.  Think of if as getting paid for a limited order.  I love the stock so purchasing the stock at $60 (minus 1.90) would not be a problem. At the cost of $58.10 the dividend would be around 4.9%.

Currently I own 1000 shares of COP and I write calls when the stock price goes over $67.50.

The July 10^th stock price is $59.13.

Other ideas:

I am looking to either go long or short the Chinese, Greece or Japanese market by going long or shorting a large country index ETF.

I am putting together a spreadsheet of China, Greece and Japan ETFs.  It will include the following information:

ETF Name

Symbol

Index

Hedged Currencies

Net Assets

Dividend

Bid / Ask Ration - Option

Option

Option Liquidity

If you are interested I can send you the spreadsheet (using Google docs).

If you are interested send me a note and I will send you my wheel of fun option strategy (using Google docs).  I am looking for people to review it and me input.

If you have any investing please send me an email and I will help you develop an option strategy for your ides.

Until next week and have a great week trading.

Paul

Weekly Option Report – July 3, 2015

June 27, 2015 (today) ASHR ETF price has dropped 25% since I purchased the put option on June 12, 2015 (Strike price $50, expiration date January 15, 2016).  I am now in the money for my $50 put option and Implied Vol. (IV) and delta has been increasing (which it should).  My gain is 180% (delta and IV has increased a lot over the last week). Not a bad 3 weeks. My gain would be higher but the US market is closed today but the CSI loss another 5.4% last night (gain would be around 200%).

When do I sell? At 300% gain? What do you think?

Note. The total China capital market loss over the last 3 weeks is 12x the total Greece GDP.

GLW

My June 19, 2015  $21 put was in the money and I purchased 4000 shares of GLW (I sold 4000 for $23 late in 2014 and have sold 4 different puts since January 1^St this is the first one to finish in the money). I am since trying to sell my 40 (4000 shares) call options at $21 or $22 30 or 60 days out. This will continue my wheel of fun strategy with GLW.

I am still trying to do a covered combination option strategy next week.  For example sell a GLW put at $20 and a call at $22 when I am long the stock.  It was something I was considering to add to my wheel of fun option strategy.

COP

COP stock went under $62 and I sold a August 21, 2015 $60 put for $1.90 when the stock price was at $60.21 on Thursday July 2, 2015 (current stock price $60.51) to re-start my wheel of fun option strategy.  Think of if as getting paid for a limited order.  I love the stock so purchasing the stock at $60 (minus 1.90) would not be a problem. At the cost of $58.10 the dividend would be around 4.9%.

Currently I own 1000 shares of COP and I write calls when the stock price goes over $67.50.

Other ides:

I am looking to short the Japanese market by shorting a large Japan index ETF. I need to decide if it will be a currencies hedged or non-hedged ETF and the timeframe.  The government continues to purchase Japan stocks by using pension funds and loans and driving the Yen down (so there company can export and have higher profits). How long can it continue?

I am putting together a spreadsheet of Japan ETFs.  It will include the following information:

ETF Name

Symbol

Index

Hedged Currencies

Net Assets

Dividend

Bid / Ask Ration - Option

Option

Option Liquidity

If you are interested I can send you the spreadsheet (using Google docs).

If you are interested send me a note and I will send you my wheel of fun option strategy (using Google docs).  I am looking for people to review it and me input.

Until next week and have a great week trading.

Paul

Option Trades - June 26, 2015

ASHR ETF price has dropped 19% since I purchased the put option on June 12, 2015 (Strike price $50, expiration date January 15, 2016).  I am now in the money for my $50 put option and Implied Vol. (IV) and delta has been increasing (which it should).  My gain is 141% (delta and IV has increased a lot over the last week). Not a bad 2 weeks.

I decided to sell 40% of my put option Friday June 26, 2015.  I decided to let the other 60% ride since the cost of trade has been paid (it now pure profit).

Josh thanks for talking about the China mainland stock market and how over priced the stock are (was around 250 EPS).

GLW

My June 19, 2015  $21 put was in the money and I purchased 4000 shares of GLW (I sold 4000 for $23 late in 2014 and have sold 4 different puts since January 1^St this is the first one to finish in the money). I am since trying to sell my 40 (4000 shares) call options at $21 or $22 30 or 60 days out. This will continue my wheel of fun strategy with GLW.

I may try a covered combination option strategy next week.  For example sell a GLW put at $20 and a call at $22 when I am long the stock.  It was something I was considering to add to my wheel of fun option strategy.

COP

I am still looking for COP to go below $62.  When it does I will be selling $60 puts to re-start my wheel of fun strategy on COP. At $60 COP pays a 4.50% dividend.  Currently I own 1000 shares of COP and I write calls when the stock price goes over $67.50.

Other ides:

I am looking to short the Japanese market by shorting a large Japan index ETF. I need to decide if it will be a currencies hedged or non-hedged ETF and the timeframe.  The government continues to purchase Japan stocks by using pension funds and loans and driving the Yen down (so there company can export and have higher profits). How long can it continue?

Until next week and have a great week trading.

Paul

Option Trades - June 19, 2015

ASHR stock price has dropped 12.6% for the week.  I am now in the money for my $50 put option and Implied Vol. and delta has been increasing (which it should).  My gain since I purchase the put is 59%. Not a bad week.

Josh thanks for talking about the China mainland stock market and how over priced the stock are (was around 275 EPS).

GLW

My June 19, 2015  $21 put was in the money and I will be buying 4000 shares of GLW (I sold 4000 for $23 late in 2014 and have sold 4 different puts since January 1^St this is the first one to finish in the money). Early next I will be selling 40 (4000 shares) call options at $21 or $22 30 or 60 days out. This will continue my wheel of fun strategy with GLW.

COP

I am still looking for COP to go below $62.50.  When it does I will be selling a %

$60 put to re-start my wheel of fun strategy on COP. At $60 COP pays a 4.50% dividend.  Currently I own 1000 shares of COP and I write calls when the stock price goes over $67.50.

Until next week and have a great week trading.

Paul

Option Trades - June 12, 2015

I shorted the main land China market - CSI 300 today by buying a put on the ASHR ETF.  Today was a record high of $55.17.  It has been up 151% since June 16, 2014.

Details of the put:

• Strike price - $50.00
• Expiration date - January 15, 2016
• Cost 4.50

Other details:

• I used 10% of my option year to date trading profits to buy the put.
• Implied vol has decreased from 64.42 to 41.63 since June 9, 2015 (increase in the price).  This is very good if you are buying an option.

I can make profit 2 ways

• Price drops to $45.00 at expiration (I can sell to close at any time)
• If implied vol. increases.  If the price drops, or bad news comes out of China, etc the implied will increase.

Paul

Option Trading Volatility - How to Profit by Using Volatility

Please review and comment on my option trading presentation:  Option Trading Volatility - How to Profit by Using Volatility.