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rktect1 said:
Glad I didn't take my own advice. Set a sell limit for $505 on 20% of my holding and another 20% if it reaches $525
Click to expand...

Instead of set a sell limit for $505 or $525, then why not use OPTIONS by selling CALL to reduce your cost, but I consider weekly dividend. As you want to to sell at $505, then sell a contract (1 contract = 100 shares) when it reach that level by the end of the week then it will be excercise or pull your shares from your account. If you sell at the right time you could easily collect more than $300 ($3) by selling 1 contract at the $505 strike during the trading market today. If you collect with an average $3*100 shares = $300 * 52 weeks = $15,600/yr or reduce your cost $156, but If you have 1000 shares then you could easily collect $156K/per year dividend. If it reach close or near the strike price and that you did not want to sale then just raise the stike price up to $510, $515 or $520, etc. then continue to collect and raise the strike price up when it go up or sell the strike below to collect more when it down. Why SELL as a lost. At the same time you could sell PUT example $470 to collect additional $2+ per contract ($200+) if you want to buy at a discount price, the farther the time the more money you get or discount from the current price consider $470 from the closing price that is more 6% for 2 trading days left for this week and because you collect +$2 that it has to drop more than $468 to consider a loss. Some have a mini lot consist 10 shares as well / standard is 100 shares. All of the above I mentioned expire this week, but it you sell for next week then you could collect more than double that amounts.

If you don't really want to own too many shares you could alway protect yourself or limited your lost by buying PUT such as $450 strike expire a month from now = or cost you nothing, then when this week end $470 expire worthless then you could sell $450 to collect additional income.

HOPE this help to reduce your cost or create extra weekly income.

On 5/15, I sold PUT $350 strike for JAN 2015 for more than $29 ($2,900 per contract) and I just closed it by bought it back for less than 1/2 since I want to release my margin instead lock up for another 17 months for less than 50% of what I collect for less than 3 months.

OPTIONS - Unless you have crytal ball, but more than 2/3 lose people trading option held into the last minute lost their monies because of time decay as options expire worthless, then why not take advance of it by selling the time for your benefit.

My favorite for weekly dividends are F, VMW & COST since they are not to much votalite like AAPL and I could easily get in or out and get the maximum credit close to a penny (every penny count since each one is = $1 per contract).
 
I really do not understand any of that.

I pay two bucks per trade.

I am averaging $447 per share. When aapl hits $505 I will sell 20% for a gain of $58 per share.
 
I did sell off that 20% which netted me a 13% profit. I think they had that money for six or more months so its hard gauging just how great of a trade this is or isn't. Overall it was not a lot of money and my profit not including the taxes I will pay later was around $800
 
I use Etrade and TradeMonster for options. I trade APPL on weekly basis and with gained a little as I try to mininize the risk by limit to $500 to buy put or call on any symbol except for credit spread could go up to several $K for 15% to 25% with couple of days such as one trade today on COST Bought OCT 13 and Sold AUG 23 with net debit of $1.75 and I will try to collect at least $25 per contract per week, so far I have vey high chance that COST will not reach to $114 (about 90% chance this strike expire worthless) by this Friday.

Here are my actual trades on AAPL with strategy below keep my winning rolling
On July 31, I bought AUG 17 CALL $460 strike for $3.69 (or $369)

On 08/02/13, I bought AUG 17 Call $470 strike for $3.47 ($347) and sell two AUG 9 Call for $1.87 (1.87*2 = $3.74 or $374) for net credit of $.27 ($27)

On 8/8 bought back two AUG 9 Call for $.26 (or gain $1.61 * 2 = $3.23, so my cost is $.24 + $3.69 ($393) for $460 and $470 strike expire on August 17

On 8/13 Sold (short) two AUG 17 CALL $490 strike at $6.1 ($610*2 = $1,220)

On 8/14 bought back to cover two $490 strike at $10 ($1,000*2 = $2000) and sold $460 for $38.35 ($3,835 - $2000 = $1,835) for credit of $18.35 that bring my credit to $1,220 + $1,835 = $3,055

On 08/15 sold (short) two AUG 17 $495 at $5.15 ($515*2= $1,030) and bought AUG 23 $495 at $9.3 for $1 ($100) credit so this brought to $3,055+$100 = $3,155

On 8/16 bought back to cover two $495 strike at $6 ($600*2 = $1,200) and sold $470 for $30.55 ($3,035 - $1,200 = $1,855) for credit of $18.55 that bring my credit to $3,055 + $1,855 = $4,910. After I took all this credit and I still have $495 for free.

Yesterday $495 strike gained more than 110% and while it was up I attempted to sell and buy with net credit for $505 or $510 strike for 2 to 1 as previous mentioned, but failed since I set credit to high. Tomorrow I may just use $500 for $2 or more credit.


FROM my example above, if you own 100 shares of APPL and you could convert the same way that I have been doing. If you win let me know or any option strategy that work for you, please share.


"Winner" never quit
 
Last edited:
SWAVET said:
I use Etrade and TradeMonster for options. I trade APPL on weekly basis and with gained a little as I try to mininize the risk by limit to $500 to buy put or call on any symbol except for credit spread could go up to several $K for 15% to 25% with couple of days such as one trade today on COST Bought OCT 13 and Sold AUG 23 with net debit of $1.75 and I will try to collect at least $25 per contract per week, so far I have vey high chance that COST will not reach to $114 (about 90% chance this strike expire worthless) by this Friday.

Here are my actual trades on AAPL with strategy below keep my winning rolling
On July 31, I bought AUG 17 CALL $460 strike for $3.69 (or $369)

On 08/02/13, I bought AUG 17 Call $470 strike for $3.47 ($347) and sell two AUG 9 Call for $1.87 (1.87*2 = $3.74 or $374) for net credit of $.27 ($27)

On 8/8 bought back two AUG 9 Call for $.26 (or gain $1.61 * 2 = $3.23, so my cost is $.24 + $3.69 ($393) for $460 and $470 strike expire on August 17

On 8/13 Sold (short) two AUG 17 CALL $490 strike at $6.1 ($610*2 = $1,220)

On 8/14 bought back to cover two $490 strike at $10 ($1,000*2 = $2000) and sold $460 for $38.35 ($3,835 - $2000 = $1,835) for credit of $18.35 that bring my credit to $1,220 + $1,835 = $3,055

On 08/15 sold (short) two AUG 17 $495 at $5.15 ($515*2= $1,030) and bought AUG 23 $495 at $9.3 for $1 ($100) credit so this brought to $3,055+$100 = $3,155

On 8/16 bought back to cover two $495 strike at $6 ($600*2 = $1,200) and sold $470 for $30.55 ($3,035 - $1,200 = $1,855) for credit of $18.55 that bring my credit to $3,055 + $1,855 = $4,910. After I took all this credit and I still have $495 for free.

Yesterday $495 strike gained more than 110% and while it was up I attempted to sell and buy with net credit for $505 or $510 strike for 2 to 1 as previous mentioned, but failed since I set credit to high. Tomorrow I may just use $500 for $2 or more credit.


FROM my example above, if you own 100 shares of APPL and you could convert the same way that I have been doing. If you win let me know or any option strategy that work for you, please share.


"Winner" never quit
Click to expand...

I have to admit that you've given me a puzzle to unravel as I know next to nothing about puts/calls/strikes/contracts.:confused: I can see I have quite a bit of reading to do. I see that your financial knowledge has served you well considering you finished #1 last year and you are in the top 5 this year in the autotracker. I'm impressed!!
 
AAPL reports earnings today. Anyone playing this? I'm thinking about picking up some shares before the bell.
 
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