Potash Corp (POT) is merging with Agrium (AGU) imminently. This will create an awesome vertical structure for the new company as Agrium has a large retail network for the combined company’s products. The wholesale distribution of Agrium has the potential to really charge sales of the combined product line.
- cash-secured put selling for building stock positions and generating income…
- covered call writing for trimming positions and generating income…
- LEAP call buying for when large opportunities present themselves, such as after major corrections…
- Swing trading of calls and puts for our R.A.R.E. members.
Option selling is a professional strategy that takes some getting used to, however, if you are a long-term investor with a contrarian streak who likes to add income to the bottom line, this is THE strategy worth learning.
Before making any options trades, read Characteristics & Risks of Standardized Options, study the CBOE Education Center and engage in paper (pretend) trading for an extended period before trading options.
Also, read this article:
Most trades are hidden, however, several recent trades and most older trades have been released to serve as samples. More will be released as the options expire.
The oil markets are getting clobbered again because apparently the U.S. has a lot of cheap and easy to get to oil forever, there’s no reason for a risk premium on oil for say a bigger war in the Middle East and because we’ll all be driving electric cars next year.
In my recent Seeking Alpha article I said this: “This time, the only potential downside I see is a secondary offering to raise another quarter billion dollars or so. I expect that soon. However, it will only temporarily hit share prices as people scream, stomp their feet, panic, and sell the dip.” https://seekingalpha.com/article/4074040-citron-wrong-exact-sciences
The energy sector is getting beat up again, especially oil. The charts show a fairly strong support level for oil in the middle $40s which we have discussed before. While there might be a bit more downside if there is strange news out of the Middle East short-term, I think we need to focus on the intermediate term.
I am taking my first positions in Antero Resources (AR). The company is a pure play natural gas play in the Marcellus and Utica shales. It offers a very strong margin of safety and a chance to rise 50% or more in the next 2 to 4 years.
The First Trust ISE-Revere Natural Gas ETF (FCG) is rising as a hurricane heads towards the U.S. While I am concerned of a further sell-off of about 10%, FCG is a position that we need to establish. We can move in that direction by selling cash-secured puts today for a fraction of a position. The upside in natural gas is fairly obvious at this point. A lot of projects have been curtailed […]
The First Trust ISE-Revere Natural Gas ETF (FCG) is down today as options expire. While I am concerned of a further sell-off of about 10%, FCG is a position that we need to establish. We can move in that direction by selling cash-secured puts today for a fraction of a position. The upside in natural gas is fairly obvious at this point. A lot of projects have been curtailed for the next […]
I recommended initial purchases of First Solar and SunPower here: http://kirkspano.ebizontech.biz/investments/277-buy-sunpower-spwr-first-solar-fslr Today I am expanding one of those positions as the solar sector shows capitulation. For those with a position in SunPower or just looking for a good income with growth play, SunPower (SPWR) is showing capitulation today. It could fall a bit more, however, these are clearly prices to want to buy at for the long-term. When asking yourself about […]
Per our talk in the forum, I am buying stock in Silver Spring Networks (SSNI) a play on the smart grid. I am also selling puts to defray my cost or pick up more shares on downward volatility. The company has already worked on some huge projects and is profitable. I believe they will continue to surprise to the upside. I think this is especially true given the energy bill […]
I am currently listening to the Exact Sciences earnings call. The Anthem news is excellent. Revenue is going to be good. Kevin affirms test volume. Points out focus on controlling costs. Looks like company can be profitable by Q4 2016 or Q1 2017. I am buying the January 2018 $8 calls with a limit price of $2.50 for 1% of the Punch Card Stocks portfolio. Kirk Fundamental Trends http://kirkspano.ebizontech.biz/trades
I am closing the puts on the iShares Russell 2000 ETF – IWM. Ahead of Janet Yellen, I want to take profits on these puts we bought a month ago. With only a month left of duration, I will be looking to roll into new put positions on any significant technical rally as I see the S&P 500 going into the lower 1600s and continuing to drag small cap stocks […]
As we can see in my report “The Stealth Bear Market Crashes In” small cap stocks are doing the worst in this market environment. Therefore I am hedging my stock portfolios and using this as a swing trade. The position will be need to be risk managed and likely rolled come late January or late February. I am particularly concerned about the next few weeks in the stock market as […]
These trades are for the Retirement Income Options portfolio, each for approximately 2% of net asset value. These companies represent the risky components of that portfolio. If you are underweight these names in your equity portfolio, but already hold some, I believe you can add as well. In general the story on all five stocks are that the names are extremely oversold based on their inherent risks. I believe the risks […]