Archive for July, 2020

GE – A New Financial Cow for Our Growing Herd

Well, our milk-the-cow strategy has been going strong this year, after developing the strategy and working out the kinks in paper-based and live trading over the last 3 years. So we’ve decided to add a new cow to our growing herd, namely General Electric (GE). For my smaller investors, I needed to find a stock […]

 

BAC Milkings 30 July

Today BAC has moved up slightly and looks like it may eventually close the gap at $25. For now we will roll our 24 strikes up to 24.50 and book some profits. We make $391 on 10 contracts, or $0.39 per share of new profit. This is in about 4 weeks of time, so our […]

 

IWM Milking 31 July

Well, we were right yesterday in our belief that IWM would head lower. We dropped to 145.50 and believe we have support at 145. Because we guessed right in the direction of the move, we were able to bank a lot of lost premium. We have $2322 of profits for the day on 35 positions. […]

 

IWM

IWM has not moved a lot, but we chose to roll from 148 strikes to 147 strikes to slightly improve our theta erosion on the sold options. This is also because technical analysis suggests the stock will move to that level today or tomorrow. If we’re right, doing so now will bring in more overall […]

 

SPY Milkings 31 July

SPY gapped up 4 points this morning on positive earnings reports from the FANG stocks, which represent a big portion of the economy. This placed out positions, centered on $319 in anticipation of a possible drop to support there, deep under water on the call side. Despite that, we were quite profitable on the positions, […]

 

BAC – 28 JULY No Roll Needed

The Gods of Finance are smiling on our BAC positions today. The stock has zigged and zagged and closed within 10 cents of our “fulcrum”, a straddle centered on $24.50. At day’s end we had accumulated another $368 in unrealized earnings, in addition to our $1426 of realized earnings. This represents about 30% of our […]

 

SPY – 28 July – No Rolls.

For most of the day, the SPY has remained very close to our “fulcrum” point, centered on $323. In the last 15 minutes of the day, SPY took a drop towards $391, so we may recenter this tomorrow morning. Ideally we would have done so today, and booked a $600 to $700 profit on the […]

 

SPY Roll 27 July

SPY has moved up from $321 to $323, wo we recentered on that new strike of 323. The positions were profitable, making an additional $5,772 overall, or $360.75 per contract or $3.28 per share. I took advantage of the profits and the excess cash flow to roll forward in time. This gains more time erosion […]

 

IWM – Roll 27JUL

At the last minute, a break of IWM to a higher high caused me to roll the Aug 3 147 PUT/CALL straddle into a 148 PUT/CALL straddle. I had not intended to do so, as the options were centered close to the market price, but I detected a breach of higher highs suggesting the market […]

 

Milk The Cow Forum

My recent article on Seeking Alpha – an income producing options strategy I’ve labeled “Milk The Cow” – has elicited a lot of interest from readers and prompted a lot of questions. So I’ve created this post for readers to be able to interact off of the Seeking Alpha site and continue the discussion. As […]

 
Disclosure:This web site discusses exchange-traded options issued by The Options Clearing Corporation. Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies of this document may be obtained from your broker, from any exchange on which options are traded or by contacting The Options Clearing Corporation, One North Wacker Dr., Suite 500 Chicago, IL 60606 TradeJolt.com is not a registered investment advisor or broker-dealer. We do not make recommendations as to particular securities or derivative instruments, and do not advocate the purchase or sale of any security or investment by you or any other individual. By continuing to use this site, you agree to read and abide by the full disclaimer.