Trading Plan

by billb 20. October 2008 09:25
Due to the recent assignments, I came up with a trading plan over the weekend.  GE was so damn close to the money, I think there is a real possibility that it will trade over $20 this morning, especially due to the recent volatility in the market.  When that happens, I'm going to sell it and then sell another put, probably around $17.50.  The XLF assignment at $16.00 may or may not cross back into profitability, so I'm going to stick with my original plan and start selling calls on XLF.  I'll report back later on the strikes.

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10/20/2008 9:54:30 AM

billb

Executed. Sold my GE back @ 20.10, sold 17.50 puts for 0.60 credit. Sold XLF 19.00 calls for 0.26.

I'm going to hold off on selling C calls this month until it rises in price a bit. The premium for 22.50 and 25 are a little too low for my liking. And again, given volatility, I think we'll witness a spike at some point where I can get some decent premium.

billb us

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