I sold to open some DryShips (DRYS) Nov 6 puts this morning. DRYS has support at a rising 50 day SMA and 61.8% retracement as well as ascending trendline. DRYS is up sharply this morning on average volume with reports of a Baltic Dry rally.
DRYS Hourly
I’m not convinced this recent UNG movement is a lasting trend. UNG is right at a declining 50 day SMA as well as some resistance from a declining trendline (see chart). Given these technical indicators and reports of record natural gas inventories I decided to sell more calls on my UNG position.
UNG Hourly
I’m having a lot of difficulty finding any new long positions to initiate and looking at the NASDAQ Composite weekly chart it is easy to see why. The area around 2150 is clearly an area of importance that we need to watch closely. Former areas of support tend to act as resistance. This doesn’t mean that the market can’t continue. It is likely we consolidate either over time or through price. I’ve been a net call seller over the last few days in anticipation of some consolidation or a pullback.
Nasdaq Weekly
I sold to open some October 7.50 covered calls on a small CardioNet, Inc. (BEAT) position. BEAT has been range-bound between $7.80 and $6.50 for nearly 2 months. On strength I will sell Oct or Nov 7.50 puts. This is a 30 minute chart. I normally post hourly bars.
BEAT 30 Minute
I sold to open ENER Oct 14 covered calls in my IRA. ENER has a flat 50 day SMA. I decided to sell calls and collect some premium anticipating some short-term weakness.
ENER Hourly
I had the following options expiring in September.
Energy Conversion Devices, Inc. (ENER) – I sold ENER September puts back on July 23rd in my taxable account. This is a 2 month net return of 7.54%.* I sold ENER October 13 puts on September 17th once I was confident the September puts would expire OTM.
I also hold ENER in my IRA and had some September 16 calls expiring which I sold on August 10th. This is a 6 week net return of 4.64%* and lowers my cost basis to $13.01.
ENER Hourly
United States Natural Gas (UNG) – I had September 14 calls expiring that I sold back on August 10th in my taxable account. This is a 6 week net return of 4.95%.* and brings my cost basis down to $11.52. I sold some UNG Oct 12 Calls in my IRA on Friday, September 17th before close.
UNG Hourly
RTI International Metals, Inc. (RTI) – I sold to open RTI Sep 17.50 puts back on August 4th. This is a 6 week net return of 6.24%.*
RTI Hourly
Smith International Inc. (SII) I sold SII September 25.00 puts back on August 13th. This is a 5 week return of 2.77%.*
SII Hourly
Basic Energy Services, Inc. (BAS) – I sold BAS Sep 7.50 puts on July 24th. This is a 6 week net return of 15.23%*.
BAS Hourly
I closed out these September options prior to expiration:
* The return is calculated using the premium I received from the sale of the options (less commissions) and the capital required to pay for their possible assignment.
Just before close on Friday I sold October 12 calls on a portion of my UNG position. UNG has some heavy resistance at the $12 area with the declining 50 day SMA and a descending trendline. I will sell calls on the remaining portion of my position if there is further weakness next week.
UNG Hourly
I closed out my BEAT September 7.50 puts. BEAT isn’t really showing a definite trend so I didn’t want to risk being put the stock at this point. I may consider selling some more puts next week. I sold these back on July 28th at 1.30 and bought them back at .25. That is a net return of 11.13%. *
BEAT Hourly
* Return is based on the premium I received from the sale of the options (less commissions) and the capital set aside to pay for their possible assignment.
I sold some ENER October 13 puts in my taxable account. I actually made the trade this morning but didn’t get around to posting it until now. The chart looked a lot better this morning. The price is back above the 50 day SMA and the 50 day SMA has flattened out. ENER made some big moves this week on higher volume. Support at $12.25 and resistance at $15.70. I am also short the September 12.50 puts in this account which should hopefully expire OTM tomorrow.
I am long ENER in my IRA. If there is further weakness I will sell some 13 or 14 strike calls.
ENER Hourly
Sold balance of BAS on strength before close. I’m still short the September 7.50 puts and barring any unforeseen catastrophes I will just let them expire worthless. Resistance at $9 as you can see on this cart. This is a daily chart chart – I normally post hourly bars.
BAS Daily