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Options Oracle: 09/13/2012

We are selling in-the-money puts in an effort to buy the stock at expiration. Should the stock move up and stay over the $21 strike price then we would not get to buy the stock. However, we would still get to keep the premium we’ve collected. That wouldn’t be so terrible because it would result in a 6% […]

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Options Oracle: 09/07/2012

We are “rolling down” the strike price on the short side of our calendar spread for BIDU. We originally bought the Jan 110 Calls for 27.20 on August 24th, then we sold the October 125 Calls for 3.20 on August 29th. This lowered the cost basis of the leaps to 24. Rolling down the short side of the […]

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Options Oracle: 08/29/2012

Baidu bounced perfectly off of support just like I thought it would and it is now moving towards the 20-day moving average. The original strategy was to buy the Jan leap and wait for the stock to move higher before selling the near-term calls against the long position. This will turn the position into a diagonal call spread […]

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Options Oracle: 08/24/2012

Baidu has been a great trading stock and it looks like we’ll have another opportunity to take profits out of this long call position. Our goal is to buy the LEAP, wait for the stock to move higher and then sell front month calls against the long leap to collect a premium and lower the cost basis of […]

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Options Oracle: Expiration Week Alert 08/15/12

This Friday marks expiration day for the July option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), Potash Corp. (POT), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), SPDR Dow Jones Ind. Avg. ETF (DIA), Netflix (NFLX), Biogen, Inc. (BIIB) and Chipotle Mexican Grill (CMG). Watch the video »

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Options Oracle: 08/07/2012

On June 8th we bought the January 11 Calls for 4.60. The stock has since stayed in a trading channel with the price now at the upper resistance area of the price range. The red spinning top is a signal that the sellers may, once again, be moving in to push the stock lower. Another signal that tells […]

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Options Oracle: 08/03/2012

As you can see from the chart, there is a lot of room to go on the upside if this stock is going to fill the gap. A credit put spread makes money on the way up, so if the stock stays over the $290 mark we will get to keep the $3 credit to our account. […]

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Options Oracle: 07/27/2012

This is a new calendar spread that we are taking in Biogen (BIIB). It’s obvious that this stock has been in a well-defined upward trend and it looks as though there is enough support in this stock to justify a long diagonal call spread for a position. The trade instructions are laid out at the top of this […]

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Options Oracle: Expiration Week Alert 07/18/12

This Friday marks expiration day for the July option chain. We are currently holding positions in the following companies; SPDR Gold Trust (GLD), Potash Corp. (POT), iShares Silver Trust (SLV), AMEX SPDR Energy Select Index (XLE), Amazon (AMZN), SPDR Dow Jones Ind. Avg. ETF (DIA), Netflix (NFLX), Starwood Hotels (HOT), iShares Gold Trust (IAU) and Hain Celestial Group, Inc. (HAIN). […]

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Options Oracle: 07/13/2012

On May 25th we initiated a long call position in NFLX. Over time, we added a credit put spread to the position and eventually sold calls against the long leap position to lower the cost basis. Now that July expiration is right around the corner, we are going to sell the August puts against the existing position to […]

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