Selling PUT and CALL XJO ---- LIVE

Traded ON REAL ACCOUNT

8 Sep 2011 Sell 10 put ANZM79 SEP11 1900 @0.350 ANZ $19.36
29 Sep 2011 expired Profit $350 in 20 days

4 Oct 2011 Sell 10 put WBCK87 Exp 27Oct11 1800 @0.430 WBC $19.42
6 Oct 2011 Buy 10 WBCK87 Exp 27Oct11 1800 @0.160 WBC $20.57 -- Profit: $270 in 2 days

13Oct2011 Sell 10 put WBCVT9  Exp 27Oct11 2100 @0.260 WBC $21.59
29Oct2011 expired Profit $260 in 16 day

25Oct 2011 Sell 10 put WBCK77 Exp 24Nov11 2100 @0.570 WBC $22.00
15Nov2011 Buy 10 WBCK77 Exp 24Nov11 2100 @0.320 WBC $20.97 -- Profit: $250 in 20 days

15 Nov 2011 Sell 5 put BHPUT8  Exp 24Nov11 37.00 @0.755 BHP $36.86
16 Nov 2011 Buy 5 BHPUT8 Exp 24Nov11 37.00 @0.555 BHP $37.15 -- Profit: $100 in 2 days

16 Nov 2011 Sell 10 put WBCCH7 Exp 22Dec11 20.00 @0.410 $20.80
22Dec2011 expired Profit $410 in 36 days

22Dec2011 Sell 6 put BHPXM8 Exp 21Jan12 34 @0.725 $34.72
24Jan2012 expired Profit $435 in 32 days

2Feb2012 Buy 10 PUT NABX67 Exp 21Feb12 34 @0.750 $23.87
8Feb2012 Closed  @1.625 Profit $875 in 6 days

8 Feb2012 Buy 10 PUT ANZC57 Exp 21Feb12 22 @.480 $21.63
16Feb2012 Close @0.750 Profit $270 in 8 days

6Mar2012 Buy 20 PUT ANZES7 Ecp April12  $22.29 @0.340
8Mar2012 Close @0.600 $21.78 Profit $520 in 2 days

9Mar12  Buy PUT 20 ANZEQ7 Exp 29Apr12 $21.79 @0.375
13Mar12 Close @0.225 Loss $300 in 4 days

14Mar12 Buy 20 PUT ANZEW7 Exp26Apr12 $22.37 @0.460
19Mar12 Close $22.67 @0.330 Loss $260 in 5 days

21Mar12 Buy 20 PUT ANZEW7 Exp 26Apr12 $22.53 @0.375
26Mar12 C close @0.200 Loss $350 in 5 days

28Mar12 Sell 6 put BHPSY9 Exp 29Apr12 $34.53 @.0.550
26Apr12 Expired Profit $330 in 28 days

26April12 Buy 10 PUT WBCBJ8 Exp29Apr12 $21.89 @0.670
26Apr12 Expired Loss $670 in 24 days

26Apr12 Sell 10 put NCMPT8 Exp 24May12 $25.84 @0.650
1May12 Close @0.375 Profit $275 in 5 days

2May12 Sell 10 ANZNK7 Exp 24May12 $23.76 @0.480
24May12 Expired Profit $480 in 22 days ----- buy 1000 ANZ Shares

14June12 Buy 10 put ANZM47 Exp26July12 $21.37 @0.485
27June12 Close @210 Loss $275 in 13 days

_________________________

12July12 Buy 10 put CBACQ8 Exp 26July12 $53.60 @0.390
16July12 Sell (close) @0.170 Loss $220 in 4 days

31July12 Buy put 10 NABBL8 Exp Sep12 $25.05 Strk price 25.50 @775

17Aug12 Close Stk price $23.77 @..900 Profit $125 in 18 days


18July12 Sell call 10 ANZRG7 Exp 30Aug12 $22.04 @.240
30Aug12 Expired Profit $240 in 42 days


30Aug12 Sell put 7 BHPG49 Exp Sept12 $31 Stk price $32 @.610
11Sep12 Close @0.140 Profit 7x610-140= $330 in 12 days


18Sep12 Buy put 10 BHPNK8 Exp Oct12 $33.85 @0.850
25Sep12 Sell (close) $1.1 Profit $250 in 7 days

26Sep12 Sell 10 BHPRP8 Exp Oct12 $32.70 @0.300 Strk prc $31.5
25Oct12 Expired Profit $300 in 30 days
 
25Oct12 Buy put 20 BHPDP9 Exp 29 Nov $34,41 @.710
26Oct12 Close $34,09 @.860 Profit $300 in 2 days

26Oct12 Buy put 20 WBCEQ9 Exp 29Nov $25.34 @.680
2Nov12 Close put @0870 Profit $380 in 6 days

2Nov12 Sell 10 ANZI48 Exp 29Nov @0,500 $25,60
29Nov12 Get assigned Profit $500 in 27 days

29Nov12 Buy 1000 ANZ @25
26Feb13 Sell 1000 ANZ @28,32 Profit $3320



28Feb13 Sell Put 10 NCMTP7 Exp Mar13 @0.420
27Mar13 Expired Profit $420 in 29 days



28Mar13 Sell Put NCMTR7 Exp 23Apr13 @.500
28Mar13 Close @1.450 Loss $950 in a day

Bad new stock goes down 8%




28Mar13 Buy put STOMV9 exp Apr13 @.590 at $12.515
5Apr12 Close @1.00 at 12.05 profit $410 in 7 days

10Apr13 Sell 10 put ANZB99 exp May13 price $28.30 @.600
30 May13 Expired profit $600 in 62 days

11Apr13 Sell 8 put BHPF88 exp May13 price $33.61 @.520
30May13 Expired profit $416 in 50 days
________________________

1 July13 Sell 10 put WBCDZ7 strk price 27.5 exp 30July price $28.30@440
25July13 expired profit $440 in 24 days

2Aug13 Sell 20 PUT ORGBK7 ORG@12.22 SP$11,50 Exp29Aug13  @.200 Total @.400
29Aug13 expired profit $440 in 27 days

7Aug13 Sell 10 PUT NCMVS7 NCM@11.25 SP$10.50 Exp29Aug13 @.290
29aUG13 expired profit $290 in 22 days

24July13 Buy10 `PUT NCMZ69 NCM@12.70 SP$12.50 Exp26Sep13 @1.040 
26Sep13 Sell @11.95 @.550 loss $490 in 58 days

6Aug13 Sell 10 PUT NCMW37 NCM@11.92 SP$10.50 Exp26Sep12 @.330
26Sep13 Expired profit $330 in 50 days

16Aug13 Sell 20 PUT NCMZ29 NCM@11.62 SP$11.50 Exp26Sep13 @.390 Total@.780
26Sep13 Expired profit $780 in 40 days

26Aug13 Sell 10 PUT QBEUR8 QBE@15.50 SP15.5 Exp26Aug13 @.350
26Sep13 Assigned @14.70 profit $350 in 30 days

29Aug13 Buy 20 PUT ORGM88 ORG@13,25 SP13 Exp26Aug13 @.220 Total@.440
26Sep13 Expired Loss $440 in 27 days

26Sep13 Share 1000 QBE Bought at $15.5
April14 Sold $12.50
Loss: $3000


26Sep13 Sell 10 PUT NCMQ67 NCM@11.95 Exp24Oct13 @.425
Oct12 Expired Profit $425 in 30days

Oct13 Share 1000 NCM Bought at 11.50

15Nov13 Sell 10 Call QBEST9 $15.52 SP15.50 Exp19Dec13 @.450
19Dec13 Expired Profit $450 in 35 days

7Mar14 Sell 10 CALL NCMMM7 SP12,5 NCM@12.18 Exp27Mar14 @.355
27Mar14 Expired Profit $355 in 20 days 

27Feb14 Sell 10 PUT NCMWZ7 SP11 NCM@11.39 Exp29Mar14 @.370
27Mar14 Expired Profit $370 in 30 days

27Mar14 Share 1000 NCM Bought at 11

Buy 10 put QBEy97 @.500
Stock get assigned
Loss: $500


----------------------- Selling Options Only ----------------------------------------

30Apr14 Sell 5 XJOXN8 SP:5300 @13.000 Total $650 Exp 16May14
Expired: profit $650 in 16 days
 
9May14  Sell 5 XJOTM8 SP5100@15.00 Total 750 Exp 29June14
Expired: Profit: $750

27Mar14 Sell 10 CALL NCMZF7 SP10 NCM@9.66 Exp29May14 @.630 Expired Profit: $650 

26May14  Sell 5 XJOLQ7 SP5150 @13.00 Total 650 Exp 17July14 Expired Profit $650
 
25June14 Sell  5 XJOXR7 SP4975 @11.00 Total 550 Exp 21Aug14 Expired Profit $550

6Aug14 Sell 10 XJOT89 SEP-14 PUT 4975 Expired: Profit $ 950

27Aug14 Sell 10 XJO..SP5150 @7.00 Total 700 Expire 16Oct14 Expired. Profit $700 

6Nov14 Sell 10 XJOZF8  @3 SP5175 Exp 20Nov14 Expred Profit $300

26Sep14 Sell 10 XJOD99 @7 SP4550 Exp 20Nov14 Expired Profit $700

19Nov14 Sell Put 10 XJOUM7 @6 SP4875 Exp 18Dec14 Expired Profit $600

13Nov14 Sell Call 10 XJOF59 @6 SP5700 Exp 18Dec14 Expired Profit $600

1Dec14 Sell Put 10 XJONP7 @9 SP4650 Exp 15Jan15 Expired Profit $900 

19Jan15 Sell 1000 NCM @10.500


4Dec14  Sell Call 10 NCMVT7 @650 SP10.50 22Jan15 Expired Profit $650

11Feb15 Sell 10 Put XJOU67 @4 SP5500 19Feb15  Expired Profit $400

12Dec14 Sell 10 Put  10 XJOVP7 @15 SP4500 19Feb15 Expired Profit $1500

16Jan15  Sell 10 PUT XJOES7 @9 SP4350 19March15 Expired Profit $900 

16Mar15 Sell 10 Put  XJOUN9 @4 SP5650 19Mar15 Expired Profit $400

30Apr15 Sell 10 Put XJOXR7 @6 SP5175 21May15 Expired Profit $600

4June2015 Sell 10 Put XJOWS7 @600 SP 5150 ex 8June2015   Expired Profit $600

23July2015 Sell 10 Put XJOB49 @7 SP5100 exp 20Aug2015 Expired Profit $700

25Aug15 Sell 10 Put XJOX28 @9 SP3750 exp 17Sept2015
26Aug15 Bought back @2 Profit $700

1Sept2015 Sell 10 Put XJOQB7 @6 SP4200 exp 17Sep2015 Expired Profit $600

3Dec15 Sell 10 Put XJOKI8 @500 SP4850 exp 17Dec15 Expired Profit $500
 
4Dec15 Sell 10 Put XJOSK8 @600 SP4375 exp 21Jan16 Expired Profit $600

8Feb16  Sell 10 put XJOTT8 @500 SP4450 exp18feb16 Expired Profit $500

TRADING


 8Apr16 Sell 10 put XJOUF9 @1200 SP 4300.0 EXPIRING 19-MAY-2016

Covered Call Writing

What You Need To Know About Covered Call Trading

Tuesday, July 14, 2009

by Karim Rahemtulla, Investment Director, Smart Profits Report

As promised last week, this is the start of a series on options strategies I've planned in order to show you a world of possibilities that the mainstream "press" quite simply doesn't want you to pay attention to.

At the risk of sounding like a conspiracy theorist, I firmly believe that most investors are intentionally kept in the dark about anything that breaks away from the "buy stocks and mutual funds" mantra that makes Wall Street money.

Most mutual fund managers can't see much further beyond Investing 101, and too many people in general are skeptical of options altogether. The problem is that they have no idea what they're missing.

The options market was created for professionals, institutional money managers, and those who report to their wealthy, sophisticated constituents instead of the general public. But that doesn't mean that the average Joe and Jane can't use it too. They just need to get a few pieces of inside information first.

When George Soros took down the Bank of England to the tune of billions of pounds, he did it by using the leverage that options provided him. Basically, he saw a trend and figured out how to exploit it legally and with a surprisingly small amount of risk.

Sure, if it went against him, he would have lost out big time, but not nearly as much as someone who played the game the usual way. You see, the key to trading options is knowing how to use them to maximize the efficiency of your money. And the first and easiest strategy for doing that is the covered call trade...

Get "Free" Money

In order to execute a covered call trade you need to use both a stock and an option, hence the term "covered." It means that your trade is covered by the underlying shares that you own.

There is no risk to the broker when you execute it since there is protection of equity by the shares you already own even if it goes against you. And that's the reason why covered calls can be used by anyone in any type of account, including your retirement account.

When you enter into a conventional covered call trade, you're essentially pledging to sell your shares at a certain price - known as the strike price - on a certain date, commonly referred to as expiration.

For pledging your shares, a buyer pays you an amount of money called a premium. And it doesn't matter what the final outcome is; you still get to keep that premium regardless of who ends up with the shares in the end.

Since it's yours to keep, spend or reinvest, you reduce the basis of your stock. Remember: Anytime you reduce your basis or capital risk, you also reduce your risk.

The One, Two, Threes Of A Covered Call

A typical covered call trade would go something like this:

Step 1: You buy 1,000 shares of Yamana Gold (NYSE: AUY) for $8.40 per share, totaling $8,400, and since you believe that the stock can go to $10 by year's end, you look at an options chain (a listing of options available) to find out what the market is buying and selling the Yamana $10 options for.
(Note: This market is open to anyone who wishes to buy or sell options)

Step 2: The option is trading for $0.90 on the bid and $0.95 on the offer, so you sell 10 contracts of the Yamana January $10 call options, receiving proceeds of $900.
Now a few things to keep in mind before we go on...
~ Just as with stock, you buy at the offer and sell at the bid.
~ Options are always priced in increments of $0.01, $0.05 and $0.10 depending on volume traded and selling price. The Yamana options are priced in $0.05 increments and the price reflected is per share x 100 shares.
~ Options trade as contracts, and each contract is equivalent to 100 shares of stock. So while the Yamana options are priced at $0.90 by $0.95, the minimum dollar amount that you need to be aware of is for 1 contract or $90 by $95. And it also means for the purpose of covered call trading, that you need to own at least 100 shares of Yamana to execute the trade.
~ The strike price of $10 means that the buyer or seller of the option has the right to either buy or sell Yamana at $10 depending on the strategy used. If the option is sold - as in the case of a covered call trade - the seller of the option is obligated to deliver shares of Yamana to the buyer of the option if the shares close at $10 or higher.
The buyer of the option then has the option of taking delivery of the shares or selling the option back into the market.
As Close To A Win-Win Conclusion As You Can Possibly Get

Step 3: With your cost now reduced by 90 cents per share to $7.50 ($8.40 - $0.90), you wait for one of three possible outcomes.
Yamana closes at $10 or higher at expiration in January, in which case your shares will automatically be sold to the buyer of the option at $10 per share.
(In order for the buyer in this case to have made any money, Yamana would have to close at $10.90 ($10 strike price + cost of $0.90 per option) or higher. Anything less, and it wasn't worth it.)
If it closes at $10 or higher you make 33% on your money ($10 strike minus $7.50 cost = $2.50 profit. $2.50 profit divided by $7.50 cost equals 33%). Or...
Yamana stays at $8.40 come expiration. In that case, as the seller, you still make money because you took in $0.90 per option you sold. Therefore, your return on the trade would be 12% ($8.40 minus $0.90 = $7.50. $0.90 divided by $7.50 = 12%) and you would still retain ownership of the shares since they didn't close above $10. Or...
Yamana closes below $8.40, in which case you still make money, since your cost was $7.50. The only way you lose money if Yamana closes below $7.50, your adjusted cost and your breakeven point.

Covered Calls: As Simple As That

Basically, just as long as Yamana closes below $10, you retain ownership of those shares. And from there, you can either sell your stock at a time you see fit or keep it to sell even more call options against your position, reducing your cost even more in the process.

And as the owner of the shares, you're entitled to any dividends paid out to shareholders during your stint as owner.

So let's summarize:

A covered call trade requires you to own the shares that you then sell options against.
The money received from selling the options is yours to keep immediately.
If the shares close above your strike price, they will be taken away (called away) from your account automatically and the money will be deposited in your account.
Covered calls can be done in any type of account, including retirement accounts.
Covered call trading can generate additional income while reducing your risk.
Next week, we'll explore a variation on covered call trading that can reduce your risk substantially while still providing double-digit returns.

Karim