Safe-Option-Trading-Income Blog

May 13, LEAPS

Sun, 13 May 2012 12:25:26 GMT

How to use LEAPS options in conservative options strategies

May 13, Good Reading on Cash-Secured Puts

Sun, 13 May 2012 02:41:50 GMT

Here's another great article from the folks at Seeking Alpha. This one, by Mark Bern, discusses the details of how to create a 4% return over a two-month period using Walgreen (WAG) as the underlying in a cash-secured put strategy.

May 13, Good Reading on Cash-Secured Puts

Sun, 13 May 2012 02:41:47 GMT

Apr 29, Trading Options as Insurance to Protect your Stock Portfolio

Sun, 29 Apr 2012 22:38:22 GMT

Trading Options as Insurance: How to use puts to insure your stock portfolio

Apr 26, The small stock trader by Mika

Thu, 26 Apr 2012 13:02:26 GMT

The small stock trader by Mika is also a small unique book that covers almost all the major stock market topics such as the traits of a successful small

Apr 2, Potential Covered Call Candidates

Mon, 02 Apr 2012 10:05:05 GMT

If you are looking for beaten-down, high-quality dividend-paying stocks for your covered call program, then check these out: BBY, HPQ, BTU, DV, BHI. All have been knocked down considerably and may fit into you trading plan. Remember, these are not recommendations, but food for thought.

Mar 19, What strike price is best for your covered calls

Mon, 19 Mar 2012 11:00:30 GMT

Here's an interesting piece to help investors decide at which strike price to sell their covered calls. The author uses Ford (F) as an example.

Feb 26, Good Covered Call Article

Sun, 26 Feb 2012 14:33:00 GMT

Check out this article on the Seeking Alpha Website. Good commentary on why it can be a good idea to write covered calls on stable dividend-paying companies.

Feb 12, Cash-Secured-Put Candidates

Sun, 12 Feb 2012 13:16:52 GMT

With the overall market up over the last few months, a cautious value investor may be finding it difficult to identify potential buys. Here's a few strong dividend-paying companies well off their 52-week highs. In fact, some are near their 52-week lows. Consider writing cash-secured puts on these - if they meet your overall criteria - and get paid to acquire them at even lower prices. CRR, WAG, MFC, ANF, MOD, TR, RES, ECA

Jan 2, Weekly Options

Mon, 02 Jan 2012 18:07:35 GMT

An introduction to weekly options and their potential in the safe-option trader's toolkit.

Jan 1, Barran's Article on Covered Calls

Sun, 01 Jan 2012 14:49:23 GMT

Barrons's has a nice piece extolling the virtues of covered calls, buy-writes, and put selling. From the article: " ...investors must master a simple options-trading strategy—known as the "buy-write" or "covered call"—that was proven in 2011 to make a silk purse from a sow's ear". Thanks to Jeff Partlow for calling attention to this in the Yahoo! Group "Just Covered Calls".

Dec 31, Safe-Options Ideas for 2012

Sat, 31 Dec 2011 17:25:59 GMT

Here's a few ideas to consider going into 2012: Consider acquiring more stocks via cash-secured puts. Quality is important: make sure you are using financially strong underlyings for your safe options selling programs. Think about longer-dated covered calls; the premiums are richer. And finally, total return comes from the sum of options premium, capital gain, and dividend income. Best wishes for a prosperous 2012.

Dec 24, Seasons Greeting

Sat, 24 Dec 2011 16:38:50 GMT

A blessed Christmas season to all!

Dec 10, Wall Street Journal Article on Covered Calls

Sat, 10 Dec 2011 21:33:50 GMT

Here's an interesting article about covered calls that recently appeared in the Wall Street Journal. Thanks to Jeff Partlow for calling our attention to this on the Yahoo! Group "Just Covered Calls".

Dec 3, Jack Schwager

Sat, 03 Dec 2011 21:03:15 GMT

Jack Schwager, author of Market Wizards

Dec 3, How to trade stock options

Sat, 03 Dec 2011 20:21:17 GMT

How to trade stock options

Dec 3, Amazon Gift Card

Sat, 03 Dec 2011 17:12:38 GMT

As you prepare for the Holiday Season, consider giving an Amazon Gift card! Shop Amazon's Gift Cards - Perfect Anytime

Nov 25, Options Time Decay

Fri, 25 Nov 2011 21:34:24 GMT

A description of Options Time Decay and why it benefits options sellers

Nov 25, The Magic of Compounding Interest

Fri, 25 Nov 2011 21:19:28 GMT

Investigating the Magic of Compounding Interest

Nov 25, Sell Before You Buy

Fri, 25 Nov 2011 21:08:37 GMT

Understanding the Concept of "Sell Before you Buy"

Nov 24, Happy Thansgiving!

Thu, 24 Nov 2011 21:23:34 GMT

Wishing one and all peace and blessing on this Thanksgiving Day.

Nov 21, How To Turn Dividend Aristocrats Into High Dividend Stocks

Mon, 21 Nov 2011 21:26:14 GMT

Great article from DoubleDividendStocks.com outlining the use of cash-secured puts and covered calls on quality dividend-paying companies.

Nov 20, The Iron Condor

Sun, 20 Nov 2011 20:28:22 GMT

Introduction to the iron condor, a potentially useful options technique for use in range-bound markets

Nov 20, OptionsHouse Brokerage

Sun, 20 Nov 2011 15:50:27 GMT

Looking for a good IRA brokerage that pays you first?

Nov 7, AVON calling?

Mon, 07 Nov 2011 13:06:43 GMT

Avon (AVP), the personal care products company, is a profitable, dividend-paying company. It has been recently beaten down to the lower end of its 52-week trading range. Perhaps this may make a good candidate for a longer dated covered call, potentially enabling you to collect dividend, premium and capital gain. Also, AVP has strike prices in one dollar increments, adding additional "optionality" to your game plan.

Oct 31, Interesting Covered Call Article

Mon, 31 Oct 2011 01:00:54 GMT

Another interesting covered call piece from Seeking Alpha for your reading pleasure.

Oct 17, REITS and covered calls

Mon, 17 Oct 2011 00:34:59 GMT

Here's an interesting recent article from the Wall Street Journal indicating that many REITs pay handsome dividends and have been beaten down in price. What they don't mention is that many of these securities also have listed options. At these low prices, they might make attractive covered call candidates in some portfolios. Have a look at selling options one strike price above the current price and that expire after the next dividend date. If you are called out you'll be happy with a profit and get to keep your option income. If you are not called out, you'll receive a very nice dividend and some option income as well.

Oct 9, Excellent Covered Call Trading Plan

Sun, 09 Oct 2011 21:23:36 GMT

Don't miss the excellent and detailed trading plan offered by "My Covered Call Blog" In a carefully documented way, we can see a plan that involves the acquisition of dividend-paying stocks by using cash-secured puts and then, once acquired, writing calls against them.

Oct 1, Non-US Dividend Paying Stocks

Sat, 01 Oct 2011 20:25:52 GMT

When considering stocks for covered calls, we recommend using dividend-paying stocks as good conservative choices for the underlying in many trading scenarios. Don't automatically restrict your search to US-based issues, as many in our international readership already know. Check out AZN, STD, BMO, FTE, and STO for starters. They all have juicy yields and listed options.

Sep 28, Master Limited Partnerships and Covered Calls

Wed, 28 Sep 2011 12:09:49 GMT

Some Master Limited Partnerships may make good vehicles for covered call writers. Many of these pay very handsome dividends. Look at KMI, KMP, EPD and EPB for staters. By writing calls on these for expiration dates after the next dividend, you gain the potential for juicy dividends as well as nice option income.

Sep 25, Cash-Secured-Puts

Sun, 25 Sep 2011 14:02:00 GMT

Given the past week's market declines, now may be a good time to initiate or add to cash-secured put positions on high-quality stocks. As always, follow you plan.

Sep 18, Introducing our new Sister Site

Sun, 18 Sep 2011 16:27:08 GMT

Safe-Options-Trading-Income is pleased to announce our new Sister Site, www.simple-trading-systems.com Please visit and share it with your friends.

Sep 11, 9-11 ANNIVERSARY

Sun, 11 Sep 2011 11:53:19 GMT

As we recall the terrible events that took place 10 years ago in New York, Pennsylvania, and Washington, let us all pray for peace and understanding among the peoples of the world.

Aug 28, Favorite Trading Books

Sun, 28 Aug 2011 21:42:05 GMT

Favorite trading books for your education and enjoyment

Aug 27, Another great covered call article

Sat, 27 Aug 2011 17:05:37 GMT

Take a look at this article, by Robert Weinstein, on the Seeking Alpha website. He provides some nice examples of using covered calls on dividend-paying stocks to capture option income plus dividends.

Aug 5, Opportunity

Fri, 05 Aug 2011 18:45:01 GMT

With the market dropping so far so quickly and the VIX on the rise, this may be a good time to sell cash-secured puts on quality stocks you'd like to own. Look at TGT, KSS, DE, and AVP as potential ideas among others.

Aug 2, Debt Deal: What's in it for us?

Tue, 02 Aug 2011 10:42:59 GMT

So many of us have been trying to anticipate how the U.S. debt deal, about to pass Congress and signed by the President, will affect our trading and investments. Here's an interesting article from Yahoo Finance that offers some interesting and compelling thoughts.

Jul 23, Covered Call Advisor: Weekly Covered Call Example

Sat, 23 Jul 2011 15:06:38 GMT

Jeff Partlow, creator of the Covered Call Advisor Site, has an excellent discussion of a recent trade he made using an in-the-money weekly covered call. The trade he made involved FCX, lasted 5 days and netted an absolute return of 0.6% (annualized rate of return = 44.2%). Visit the link provided for his excellent discussion of this trade.

Jul 9, Agricultural Stocks and Covered Calls

Sat, 09 Jul 2011 11:55:40 GMT

Have a look at Todd Johnson's ideas on using covered calls on fertilizer stocks as published in the Seeking Alpha website. Good perspectives and food for thought.

Jul 2, UVV - Potential Covered Call Candidate

Sat, 02 Jul 2011 23:58:51 GMT

UVV is a quality, dividend-paying issue well off its highs. This stock may make an excellent candidate for long-term covered call writes. Consider buying the stock at current prices and sell out-of-the-money calls against it several months out. The combination of premium income, dividend income, and potential capital gains looks appealing. Check the link provided for further research on UVV.

Jun 17, Great Article On Cash-Secured Put Selling

Fri, 17 Jun 2011 01:49:33 GMT

As mentioned often on this site, selling cash-secured puts to acquire high-quality dividend-paying stocks can be an excellent part of your investing plan. Check out the article by Parsimony Investment Research as published at the Seeking Alpha website. It's hard to argue with them at all.

Jun 11, WJS article: "Economic Fragility" of the average American

Sat, 11 Jun 2011 20:12:34 GMT

It's really kind of scary: About fifty percent of Americans are leading an "economically fragile" life. What is the evidence of this? According to the Wall Street Journal, nearly half of Americans would find it difficult or impossible to come up with $2000 in 30 days to meet an unexpected emergency. Read the article for the details.

Jun 5, Put Selling Opportunity

Sun, 05 Jun 2011 15:33:41 GMT

Over the last week the stock market has come down. Many people are starting to ask questions. Should I get out? Is this the beginning of a bigger decline? Perhaps it's timely to look at this decline as an opportunity. Now there are more than a few profitable, dividend-paying companies well off their 52-week highs. Names like Aflac (AFL), The Gap (GPS), Avon (AVP) and Oshkosh (OSK) to name a few. Time to check your trading and investing plan. If these types of issues fit into your program, perhaps selling cash-secured puts to acquire may be a good idea. For a quick review of cash-secured put selling see the attached link, which will take you to another informative part of this website.

May 29, REITs and Real Estate ETFs

Sun, 29 May 2011 21:48:40 GMT

A perspective on REITs (Real Estate Investment Trusts) and their use in safe-option-trading.

May 28, TGT

Sat, 28 May 2011 23:58:35 GMT

TGT may be an interesting issue to think about for safe options traders. It is a financially strong, dividend-paying company at or near it's 52-week low. Selling cash-secured puts to acquire and then writing covered calls against this issue may make sense for some portfolios. Especially interesting is that there are some options with strikes in $1 increments, making for some good "optionality" in selecting the right strike price for your own situation.

May 14, Some Thoughts On CSCO

Sat, 14 May 2011 12:18:25 GMT

CSCO keeps getting beaten down. Take a look at its yearly chart. It is now at its 52-week low. Is this a good example of a great stock at a bargain price? CSCO is a leader in the information technology space. For safe-options traders, this may be a good point to initiate cash-secured puts with a goal of acquiring this issue in the $16 range or even lower. Another appealing feature of CSCO: it has option strike prices in $1 increments and it trades weekly options. This gives lots of flexibility to construct a potentially profitable trade if CSCO meets your criteria as a good stock to own.

May 9, Silver Bubble?

Mon, 09 May 2011 00:28:37 GMT

Has the bubble in silver burst? Or is this just a sharp pullback in an ongoing uptrend? And what does this mean for safe-option sellers? As always, high-beta stocks and ETF's, like silver ETFs, can carry juicy option premiums. Many covered call sellers like to get the really high premiums - but it comes with a risk. Those who sold calls against silver ETF's have seen the underlying drop in recent weeks. The lesson here: are your covered call plays conservative enough and is your position-size small enough that you wont get badly hurt by a sudden downdraft?

May 4, The VIX Indicator

Wed, 04 May 2011 23:10:43 GMT

Elsewhere on this site we have mentioned the utility of the VIX (Volatility Index) as an indicator of market stress or market complacency. Prolonged low readings on the VIX, like we have now, may indeed be indicating market complacency. It is interesting that the stock market averages are at or near multi-year highs. Although the VIX is not a predictor, we should heed its use as an indicator. It is suggesting that conservative investors do not intitiate too many new and risky long positions in speculative issues.

Apr 16, DiviData Website

Sat, 16 Apr 2011 20:15:48 GMT

Do you like selling front-month covered calls on dividend paying stocks? If so, you may be interested in dividata.com. This site specializes in scouting out and rating dividend-paying stocks. One of the features of this site is "dividates", a module that catalogs the ex-dividend dates for selected stocks during the coming month. Use this site, along with your own stock selection criteria, to screen for covered-call candidates for the current month.

Apr 4, WSJ Article on CC Funds

Mon, 04 Apr 2011 11:20:48 GMT

Have a look at the Wall Street Journal Online article about different funds that use covered calls to enhance returns. Many of the techniques outlined in this article are emphasized here at safe-options-trading-income.com