While the market’s short-term uptrend remains intact, a pullback or consolidation of some sort seems increasingly likely – especially as the major indices approach what are likely to be significant upside resistance levels. As a result, my only new position this week is a covered call: Southern Copper [[PCU]] – I sold some September 20-strike [...]
This week was March options expiration and, as usual, I had a number of options positions expiring: Air Products & Chemicals [[APD]] – Some March 35-strike puts I sold against APD last November expired out-of-the-money (OTM) for a 5-month net return of 12.9%.* Archer Daniels Midland [[ADM]] – The March 15-strike puts I sold against [...]
I made the following options trades recently as further defensive moves in my portfolio: AFLAC [[AFL]] – Early last week as AFL dropped into the low teens I rolled over my short put options position by buying back the August 25-strike put options I was short and selling some January 2010 12.5-strike puts for a [...]
As the market continues to move lower – and as likely future 10 to 20-year annual real returns edge up toward the high single digits – I’m increasingly viewing my put option sales as a way of establishing potential long-term investment positions. When stocks were trading at all-time highs and the average dividend yield was [...]
