Stocks and Options » Puts

BP plc (ADR) (BP) – Assigned Jun08 Puts – Sold Calls

Bill — Mon, 23 Jun 2008 18:22:58 +0000

I was assigned 2 BP Jun08 75 Puts last Friday. I expected to be assigned these Puts but this happened a day before they would have been assigned anyway. So I was able to sell covered calls on them a day earlier.

I sold 2 BP Oct08 75 Puts for a net deposit of $290.50 in an IRA account. My basis in these shares is now 71.90 after accounting for accumulated options. I usually prefer to sell closer in options but did not do so in this case. I wanted to sell the 75 strike and get a reasonable premium so I sold further out this time.

I have a long term belief in oil and some of the oil stocks so I was a little aggressive when I originally sold the BP Puts. BP has a decent dividend at .81 per quarter and 4.82% annualized.

Georgia Gulf Corporation (GGC) Puts Assigned

Bill — Thu, 19 Jun 2008 23:34:51 +0000

This morning I was assigned 5 GGC Jan09 20 Puts in my taxable account and an IRA account. GGC went ex-dividend today so I am not surprised that I was finally put these shares.

I then sold 5 GGC Jul09 5 Covered Calls for a net deposit of $70.25 for the two accounts. Some of the Calls were sold at .20 and some at .15. If I had just been a little more patient they would all have been sold at .20, but I was in a hurry because I needed to leave the house. I own some of these shares at $14.98 and some at $17.42 after accounting for option premiums received. GGC is paying a .08 dividend and is currently priced at 4.55.

I first heard of GGC from Jim Cramer sometime last year (I think). It has not done well since then, basically trending down. GGC is currently rated as a hold or sell by those analysts that follow the stock. Recent news indicate a dispute between some GGC debt holders and GGC regarding GGC continuing to meet the covenant of the debt.

GGC seems to be adversely affected by the home building crisis because a number of its products are used in making vinyl building products.

Rolled out Apr08 AMZN Puts

Bill — Tue, 04 Mar 2008 01:17:56 +0000

I BTC 2 AMZN Apr08 80 Puts and STO 2 AMZN Jul08 80 puts for a net deposit of $450.98 in an IRA account. If put to me I would own AMZN at 67.92 after considering accumulated option premiums on this lot. AMZN has pretty good premiums so I could get back to even and probably make additional money if it is put to me. Or, I may just be able to continue rolling it out and make money that way. AMZN closed today at 62.43.

Sold Mar08 Puts for Alaska Communications Systems Group, Inc – ALSK

Bill — Thu, 21 Feb 2008 17:08:51 +0000

Today I sold 4 ALSK Mar08 12.50 puts for a deposit of $129.oo in an IRA account.

I already own 1100 shares of ALSK in taxable and IRA accounts. It pays a good dividend (6.65% at its current price of 12.80) and I write Covered Calls on it, generally at the $15 strike price.

This stock tends to move between 12/12.50 on the low end up to 15.50/16 on the high end although it has been making lower highs around 14 for the past couple of months.

Dec 07 NYSE Group, Inc. – NYX

Bill — Wed, 02 Jan 2008 19:10:34 +0000

Two NYX Dec07 70 puts expired in December. I originally sold these puts in August 07 when the stock was just above $70 for $810.49 in an IRA account.

I have not resold these NYX puts but as I write this the stock is off its recent highs at just over $85. There has been recent support at $80 so I will watch this one and may sell some $75 or $80 puts for Feb or Mar.

I currently own 200 shares of NYX with Mar08 90 calls written against them. I also have sold 2 NYX Mar08 85 puts and 2 NYX Mar08 80 puts.

This is a stock that Cramer has great faith in. In his most recent book he says that this may well be a $200 stock within the next few years.