Personal Finance and Investing

Hoppy

(3,595 posts)

9. The strategy I described, works best in stocks that trade weekly options and are high volatility.

Mon Apr 18, 2016, 09:26 PM

Apr 2016

Example: Goldman Sachs.... Trading now at $159.00

You can buy the May 27th, $155 put at $4.00. x 100 = $400.

You can then sell the $160.00 call, week after week for about $2.00 each week. You can do that until May 27th. when you start all over. Potential profit, approx. $1,000 for the cycle.

If the stock goes below $155. on May 27, you still win.

This is a simplistic overview of the strategy, but study it with Facebook, Apple and so forth.

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Is now a good time to buy oil stock? [View all] craigmatic Apr 2016 OP

According to the old rule, elleng Apr 2016 #1

Here's 3 of them progree Apr 2016 #3

What's your opinion on shell oil? craigmatic Apr 2016 #7

Nice dividend yield, 7.24% :-) progree Apr 2016 #10

Shell oil is like 52 dividend is like 7%. Chevron is 98 dividend is like 4.4% craigmatic Apr 2016 #4

I think there is the long-term headwind of climate change - divestiture and the indisputable progree Apr 2016 #2

yes the climate change argument is persuasive. Ideally I'd like to get into Tesla or technology but craigmatic Apr 2016 #6

Buy 100 BP and sell a covered call, Jan. 2017. Then, buy a $25 put, Jan, 2017 Hoppy Apr 2016 #5

You sound really good at this. craigmatic Apr 2016 #8

The strategy I described, works best in stocks that trade weekly options and are high volatility. Hoppy Apr 2016 #9