Options


Options are for those looking increase income, manage risk and take advantage of time sensitive opportunities. This section is for those who are using Fundamental Trends option strategies:

  • 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:

Don’t You Dare Trade Options Until You Read This!!!

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.

Selling Puts on Silver Spring Networks and Buying Stock – SSNI

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 […]

Buying Exact Sciences LEAPs

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

Taking Profits on Puts on iShares Russell 2000 ETF – IWM

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 […]

Buying Puts on iShares Russell 2000 – IWM

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 […]

Selling puts on CHK, DDD, EXAS & MU

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 […]