Option Trading Articles: Re: [ConservativeOptionStrategies] pfe

Saturday, January 2, 2010

Re: [ConservativeOptionStrategies] pfe

                 Vandollar,
                               Please excuse my feeble attempt at dry humor. No need to buy PFE, I already own two separate blocks of the stock and could continue selling calls and collecting dividends if I wish. My comment about placing a collar on PFE was in reference to the two directly opposite opinions I recently read from the "experts." I was thinking out loud that perhaps my best option would be sell $18 calls and buy $18 puts to lock in profits and carry me home past the one year mark. We then enjoy the lower capital gains tax rate. At February expiration the market would tell me what to do but my profit from the past year and one additional dividend would be assured, insured and in my pocket no matter who is correct !
                                                    Regards and good trading,
                                                                                   Jack

From: Vandollar <mercdesdrvr@yahoo.com>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Sat, January 2, 2010 10:48:11 AM
Subject: Re: [ConservativeOptionStrategies] pfe

Sounds like you did well Jack, always glad to see that. Couldn't you just buy your PTE and go on?

--- On Fri, 1/1/10, Jack Wigandt <nhhobbyfarmer@ yahoo.com> wrote:

From: Jack Wigandt <nhhobbyfarmer@ yahoo.com>
Subject: Re: [ConservativeOption Strategies] pfe
To: ConservativeOptionS trategies@ yahoogroups. com
Date: Friday, January 1, 2010, 5:35 AM

            Vandollar,
                          You know the rule of opinions, everybody's got one! Some of the free stuff I read from time to time as part of a sales pitch offer me 180 degree opposite opinions on PFE. One "expert", who's specialty is making money shorting weak stocks, tells of the coming disaster for many Dow stocks and recommends PFE LEAP PUT options to make you wealthy in 2010.
                          On the opposite side of the field and from the very same publishing company, just yesterday, I read how PFE sales are expected to grow as pharmaceuticals are now one of our biggest exports and the weakling dollar makes our products even more accessible to the world. BUY PFE now to get rich as it climbs to $20/share+
                           My last batch of PFE, I have held for just under one year and have a nice profit now.We wrote calls against the position each month and collected dividends. I guess the only thing to do is put a collar on it, collect one more dividend and then allow it to be called away or put it to someone else, depending on the market. I sure can not listen to the "experts",,, , they can not agree on anything!
                                                          Regards and good trading,
                                                                                          Jack

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