Sell to open HBI January 22.50 puts. HBI is up today on higher volume. Price pulled back to the rising 50 day SMA. The 22.50 strike gives me a little room as well. 22.50 is also trendline support as seen on the daily chart.
HBI Daily
I wrote DryShips, Inc. (DRYS) Jan 6.00 puts and Jan 7.50 covered calls earlier today. DRYS has been forming a symmetrical triangle for the last few months and all the moving averages have flattened out as seen on the daily chart.
I’ve been able to sell a lot of puts over the last several months on DRYS, but I need to watch this set of options very closely for a breakout as it is nearing the apex of the triangle. I don’t really follow chart patterns in a strict sense – I’m just aware of them. Trend lines and moving averages hold much more importance with my system.
DRYS Hourly
DRYS Daily
STO DSX (Diana Shipping Inc.) Jan 15 puts. I mentioned a week or so ago that I would be ready to sell the January 15 puts on a pullback. I’m still short the December 12.50 puts and the December 17.50 calls. On continued strength I will probably close the December calls.
I was tempted to sell some DRYS puts as well but I need to see a little more follow through in the shippers before I make that commitment.
DSX Hourly
STO UAUA (UAL Corporation) January $7.50 puts. UAUA jumped back above the 50 day SMA on trendline support. I had an order in this morning at the 6 strike but it didn’t get filled. I sold the 7.50 strike which leaves me the 6 strike in case I need to make any trade adjustments.
All the major airlines are up today. I’ve had several of the airlines in my watchlist and finally went with UAL. I may add some DAL or CAL on a pullback.
UAUA Daily
UAUA Weekly
Sell to open American Eagle Outfitters, Inc. (AEO) Jan 15 puts. Nice bounce off trendline support at $14.50 on higher volume. I’d prefer to have a little more cushion than the 15 strike but that was the only viable option at the current price.
AEO Hourly
AEO Daily
I wrote some RTI International Metals, Inc. (RTI) January 17.50 puts just before close.
RTI Hourly
RTI Daily
November 2009 Options Expiration summary.
I made a few trade adjustments earlier this month and rolled CENX and GMXR forward and down:
I also closed out of some short options positions early to lock in a profit and eliminate any risk of assignment.
DryShips, Inc. (DRYS) – The DRYS November 6.00 puts I wrote at the end of September expired OTM. This is a 7 week return of 7.38%. *
DRYS is forming a wedge on the hourly chart – like just about every other chart I’m seeing right now. I might take another opportunity to sell more puts this coming week. Probably the January 5 strike. I should probably write some covered calls on the small position I’m holding too. I was hoping for a breakout much like DSX but it hasn’t formulated yet.
DRYS Hourly
My current cash position is at about 60%.
* 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.
I sold to open DSX December $17.50 calls. I’m expecting some near-term weakness and consolidation. I will look to sell December or January 15 strike puts after a decent pullback – maybe in about a week.
DSX Hourly
Another day, another new low for UNG. This is why you need to pay attention to moving averages. It is very tempting to try to pick a bottom, but it will only cause you grief (and money).
UNG Hourly
I sold to open some CENX (Century Aluminum Co.) January $7.50 puts just before close today. CENX is back above the 50 day SMA and the moving averages on the weekly chart have lined up nicely as well.
I made an adjustment to CENX a few days ago in my taxable account to roll forward and down to December $7.50 puts. This new trade was in my IRA. I choose January because the premium was double December premium (albeit small).
I’m choosing to be more conservative and sell puts further OTM and farther out in expiration as the market seems to be grinding sideways in the near term.
CENX Hourly
CENX Weekly