Option Trading Articles: RE: [ConservativeOptionStrategies] somewhat different conservativestrategy

Patience seems to be a virtue here, I like MNTA,STEC as low dollar stocks for CC plays, buy the stock right after expiry or when it is in your target price, wait and sell covered calls OTM two weeks before and repeat, looking at the $12.50 cals for MNTA

--- On Wed, 12/16/09, Hand, John <john.hand@opm.gov> wrote:

From: Hand, John <john.hand@opm.gov>
Subject: RE: [ConservativeOptionStrategies] somewhat different conservativestrategy
To: "'ConservativeOptionStrategies@yahoogroups.com'" <ConservativeOptionStrategies@yahoogroups.com>
Date: Wednesday, December 16, 2009, 8:21 AM

John,

I've been thinking of trying that too. Also, with a two weeks before expiry.

I am more inclined to do ITM, as I have little interest in owning the stocks.

If/when I try it, I'll post my activity.

Thanks. Jack

-----Original Message-----
From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of John Hudgens
Sent: Tuesday, December 15, 2009 4:05 PM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: [ConservativeOption Strategies] somewhat different conservativestrateg y

Since some of you write naked puts on stocks, here is an alternate plan. but does entail more money up front, but the same if you end up with the stock.

I have been experimenting with a new strategy the friday before expiration Friday and for the last 3 months it has worked well.

I have a list of 15-30 stocks I wouldn't mind owning. Friday before expiration I look for ATM or slightly ITM yields of 2-4 % (premium over stock price) and write covered calls for a week. Doesn't work well on Monday, as too much EV goes away over the weekend, but does work on Friday. Try paper trading it. I did 200 GG, 300 MAC and 200 GNK this last friday. for about 3% for 1 week assuming all goes well. Takes away a lot of market risk -- being in for 7 days versus 4 to 5 weeks. If they take the stock, I'm happy. If I keep it, I write a next month call or sell it.

As usual, the fly in the ointment this time was MAC and TSL GG is a big TBD.I would appreciate critical comments

John