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