Investment Idea Sharing – April 11, 2015
See below for my personal stock market Buys or
Sells for this week:
Buy Stock/ Fund: UVXY
Sell Stock/Fund: none
Sell (to Open) Covered CALL: UCO, USO, UVXY
Buy (To Close) Covered Call: none
Sell (to Open) Cash Secured PUT: UVXY
Buy (to Close) Cash Secured PUT: none
See the details on each of these transactions
below the Weekly Summary table.
The world market indices were ALL up this week. Most are back to being very close to their
all time highs. Read more here: http://money.cnn.com/2015/04/12/investing/stocks-markets-2015-lookahead/index.html?source=yahoo_quote
Read about financial bubbles here: http://www.forbes.com/sites/panosmourdoukoutas/2015/04/11/two-things-investors-should-know-about-financial-asset-bubbles/?utm_campaign=yahootix&partner=yahootix
The price of oil went UP this week and ended at
$51.64, up from $49.14 last week.
See the 2 year weekly Oil Price chart here:
Weekly Summary Table of Worldwide Market Index
Closing values:
Here are my Stock / Fund BUYs for This Week:
Symbol:
UVXY
Buy Date:
April 10, 2015
Buy Price:
$13
Target Sell Price: $18
These UVXY shares were PUT to me at $13 on 4/10/2015
from a PUT that I sold on 4/9/2015 for $.26, a 2% return in 2 days (see details
below). I will try to sell a CALL next
week for at least a 1% premium at a $13 strike price and expiration date 1 or 2
weeks out.
Here are my Stock / Fund SELLs for This Week:
Stock Symbol:
Sell Date:
Sell Price:
Buy Price:
Buy Date:
Here are my Option (CALL or PUT) Sells/Buys for This Week:
Option: Sell to Open Covered CALL
Stock Symbol: UCO
Sell to Open Date: 4/7/2015
Expiration Date: 7/17/2015
Strike Price: $9
Option Price: $0.80
Oil prices have been coming back up the past 2
weeks and UCO got up to almost $8, so I sold this call at a 9% option premium
expiring in 13 weeks, for a weekly return of 0.7% per week.
Option: Sell to Open Covered CALL
Stock Symbol: USO
Sell to Open Date: 4/7/2015 , 4/10/2015
Expiration Date: 5/15/2015 , 7/17/2015
Strike Price: $20 for both
Option Price: $0.60 , $0.80
Oil prices have been coming back up the past 2
weeks and USO got up to almost $18. My buy in price is $20, so I sold these calls at a 3% option premium expiring
in 5 weeks and a 4% premium expiring in 13 weeks, for a weekly return of 0.4%
per week. Not my 1% target, but I have
so much USO that I am willing to accept a lower return on some of my shares in
order to start taking money off the table, and to lower my cash at risk if USO
goes up enough to CALL me out. I have
other $20 shares that I will wait to sell CALLs on until USO gets above my $20
buy in price.
Option: Sell to Open Covered CALL
Stock Symbol: UVXY
Sell to Open Date: 4/7/2015 , 4/9/2015 ,
4/9/2015
Expiration Date: 5/15/2015 , 6/19/2015 , 9/18/2015
Strike Price:
$15 , $22 , $22
Option Price: $1.15 , $1.07 , $2.40
UVXY has continued down for the past month as
I was buying these UVXY shares from PUTs I had sold. I must sell CALLs on my holdings to keep some
cash flow going while I wait for UVXY to come back to my buy in price. UVXY is tied to the VIX futures which usually
trade in “contango”. This means that
over the long term they will only go down, which drives UVXY down too. See Yahoo Finance 2 year chart for UVXY and
note the long term down trend including Reverse Splits (4 for 1 on Jan. 24,
2014, and 10 for 1 on June 10, 2013): http://finance.yahoo.com/echarts?s=UVXY+Interactive#%7B%22range%22%3A%222y%22%2C%22scale%22%3A%22linear%22%7D
My plan with these UVXY shares is to sell
calls while I wait for UVXY to come back.
These calls will lower my
effective buy in price. If the markets
take a drop, then UVXY will go back up and I can, hopefully, get called out
above my buy in price.
Option: Buy to Close Covered CALL
Stock Symbol:
Original Sell to Open Date:
Original Expiration Date:
Buy to Close Date:
Strike Price:
Option Price:
Option: Sell to Open Cash Secured PUT
Stock Symbol: UVXY
Sell to Open Date: 4/9/2015
Expiration Date: 4/10/2015
Strike Price: $13
Option Price: $0.26
I have been continuing to sell PUTs on UVXY as
it has gone down from $22 last month to $13 now. It has gone down farther than I expected and
these $13 PUTs are the last I will sell on UVXY. Now, I will sell covered CALLs to start driving
down my effective buy in prices until UVXY comes back up.
Option: Buy to Close Cash Secured PUT
Stock Symbol:
Sell to Open Date:
Expiration Date:
Strike Price:
Option Price:
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StockEvaluator ‘Short List’
Download ‘Short List’ here: http://www.ultimatestockfinder.com/stockevaluator_short_list.xls
‘Short List’ screens using 12 fundamental
value limits that I want to see in a stock before considering it as a possible
buy.
View the Stock Evaluator ‘Short List’
screening criteria and target limit values here: http://www.ultimatestockfinder.com/short_list_12_criteria.JPG
Mutual Fund Evaluator ‘Short List’
Download ‘Short List’ here: http://www.ultimatestockfinder.com/mutualfundevaluator_short_list.xls
View the Mutual Fund Evaluator ‘Short List’
screening criteria and target limit values here:
Please remember to send me any other
investing ideas, information or questions that you want to share with the group.
Thanks,
John D.
Disclosure: The author has no positions in any of the
stocks or mutual funds mentioned in this article unless clearly stated above. We
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