It’s been a while since I updated the results on our Twitter trades, and it seems like a good time to do so. Just a reminder, during the trading week, we publish trade ideas on Twitter and StockTwits accounts. We are summarizing them here as a way to have some post-mortem review on the trades. These posts are meant to help keep records on the trades, help gain insights on how we trade, and help you become better in your trading.
- All the trades were found on the options screener by Option Samurai. Check it out there to find trades like this.
- Read our previous post-mortem post
- Read a really good example on how we manage a position over time with our $BX position example.
The first trade I shared was Covered call $KO
$KO at support. Buying Covered Call: Option premium + dividend before expiration. http://t.co/vVV9OBQGbg #options pic.twitter.com/M9XjRVgWgQ
— OptionSamurai (@OptionSamurai) March 9, 2015
$KO is dividend aristocrat (has been distributing bigger dividend each year for more than 25 years) and was on support before dividend. The position did not go perfectly as KO broke support, but it held $40 area. The position is currently breaking even after including the dividend and the calls. I intend on keep selling calls, similarly to the $BX position. The second trade was Naked put $MSFT
$MSFT @40 is interesting w/ over 3% div yield + pe 15 (cheapest among peers).Naked put trade: http://t.co/4NVqFPBi16 pic.twitter.com/bxVs8zA70N — OptionSamurai (@OptionSamurai) March 12, 2015
The reasons were in the tweet: good company, good div yield, support, cheap-ish.
I closed the trade for profit for 5 cents (usually don’t wait when I get a chance to close the trade for a nickel).
Third trade is still open, $EMR, ‘boring’ industrial company with steady dividends. So far the position is profitable.
http://t.co/kGeSg6TfVo $EMR On support and interesting. It distributed #dividends over 25 years straight. pic.twitter.com/j21HcyE0al
— OptionSamurai (@OptionSamurai) March 16, 2015
Forth trade was $GILD
$GILD Long call. 100 Looks like a support. Also, Low IV and very close BE point. http://t.co/h3Ql3DqHnA pic.twitter.com/a2t2iiReLI — OptionSamurai (@OptionSamurai) March 23, 2015
This trade was on my ATR radar, where I find trades that the break even point is much smaller than the volatility. Since the expiration was relatively close I closed the trade two days later, at a small profit (didn’t have enough time till expiration if I’m wrong).
I twitted about $GIS but missed a 7% move in few days, even though it was on my radar (happens sometimes…)
$GIS Raised dividends by 7%. yield is 3.3%. Distributes and increases dividends 16 years straight. Looking for buy setup. #dividends
— OptionSamurai (@OptionSamurai) March 24, 2015
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