January 27th, 2010 - Update

Unfortunately I am finding it too difficult to keep up my blog with real-time posts from my mobile Droid. I will leave my blog up so anybody that wants to can see my trading plan and some past trades. From now on I will post my trades as close to real time as possible in the Yahoo Group JustCoveredCalls. Link Below:

http://finance.groups.yahoo.com/group/justcoveredcalls/

This is an excellent group for people of all levels of experience from beginners to experienced. A day doesn't go by that I don't learn something new from these folks who generously give their time and knowledge. It is a friendly atmosphere where we all help each other. I guarantee you that this free site has more knowledge than any training course you could pay for. Please come by and visit us.

New Trade - 1/6/10 - CLX - (Clorox)

Naked Put - CLX (Clorox) Feb 10 @ $60 Strike for $0.85 each. Net $85 per contract.

Clorox is one of my sure things. I originally purchased it at $56 and kept writing calls on it until it was finally taken from me last month at $60. I have been waiting for a pull back but it hasn't happened so I am going to just jump back in. Clorox is a solid company with a long long history of raising dividends. Nothing would make me happier that to get put this stock at a price of $59.15 ($60 - $0.85 premium). Not the juiciest return of my portfolio but a very safe investment.

Ticker: CLX
Expiratoin: 2/19/10
Invest Date 1/6/10

Current Stock Price $61.75
Strike Price $60.00
Premium $0.85
Annual Dividend $2.00

Days to Expiration 44
Return (Assumes CSP) 1.42%
Annualized Return 11.75%
Downside Protection 4.21%
Effective Dividend if Put 3.38%

New Trade - 1/5/10 SO (SOUTHERN CO)

Naked Put - SO (Southern Company) Feb 10 @ $32 Strike for $0.70 each.

Risk Management:

Ticker: SO
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $32.60
Strike Price $32.00
Premium $0.70
Annual Dividend $1.75

Days to Expiration 45
Return (Assumes CSP) 2.19%
Annualized Return 17.74%
Downside Protection 3.99%
Effective Dividend if Put 5.59%

New Trade - 1/5/10 O (Realty Income Corp)

Naked Put - O (Realty Income Corp) Feb 10 @ $25 Strike for $0.85 each.

Risk Management:

Ticker: O
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $26.40
Strike Price $25.00
Premium $0.85
Annual Dividend $1.72

Days to Expiration 45
Return (Assumes CSP) 3.40%
Annualized Return 27.58%
Downside Protection 8.52%
Effective Dividend if Put 7.11%

New Trade - LLY - 1/5/10

Naked Put - LLY (Eli Lilly) Feb 10 @ $34 Strike for $0.85 each.

Risk Management:

Investment Return / Protection For Naked Puts

Ticker: LLY
Expiratoin: 2/19/10
Invest Date 1/5/10

Current Stock Price $35.10
Strike Price $34.00
Premium $0.85
Annual Dividend $1.96

Days to Expiration 45
Return (Assumes CSP) 2.50%
Annualized Return 20.28%
Downside Protection 5.56%
Effective Dividend if Put 5.91%

Year End 2009

Okay, I have been out of the loop now for a couple of months. I have had to travel to places that don't have high speed internet but I have all that fixed now with my new DROID! I will pick back up my blog postings in the new year however they may not all be real time as before. I will try to post them all as close to real time as possible but if I am on the road trading from my Smart Phone then I will have to wait until that evening for posting. Anyhow, here was a trade for today:

Investment Return / Protection For Naked Puts

Ticker: PFE
Expiratoin: 2/19/10
Invest Date 12/30/09

Current Stock Price $18.43
Strike Price $18.00
Premium $0.63
Annual Dividend $0.72

Days to Expiration 51
Return (Assumes CSP) 3.50%
Annualized Return 25.05%
Downside Protection 5.75%
Effective Dividend if Put 4.15%

New Trade - 8/25/09 - NUE

STO (2) Naked Put - NUE (Nucor) Oct 09 @ $40 Strike for $1.00 each. Net Premium $199.

Risk Management:

Ticker: NUE
Expiratoin: 16-Oct-09
Invest Date 25-Aug-09

Current Stock Price $46.50
Strike Price $40.00
Premium $1.00
Annual Dividend $1.40

Days to Expiration 52
Return (Assumes CSP) 2.50%
Annualized Return 17.55%
Downside Protection 16.13%
Effective Dividend if Put 3.59%

New Trades - NSC, NYX, UNG, CHU - 8/25/09

I will be out of town most of this week so if I make a trade I will just do a quick entry without the risk management details.

Made the following Covered Call trades on existing shares Monday -

NYX - $28 Strike
UNG - $12 Strike
CHU - $15 Strike (I bought an additional 300 shares of this one and I am now writing calls on 500 shares).

Made the following NP positions Monday -

NSC - $45

I am looking for an entry point for NPs on IPI and NUE this week but I am hoping for a pull back first.

New Trade - 8/20/09 - DE

STO (2) Naked Put - DE (Deere and Co. a.k.a. John Deere Farm Equipment) Sep 09 @ $42 Strike for $1.25 each. Net Premium $249. A solid company with a history of overcoming any and all economic challenges.

Risk Management:

Ticker: DE
Expiratoin: 18-Sep-09
Invest Date 20-Aug-09

Current Stock Price $44.40
Strike Price $42.00
Premium $1.25
Annual Dividend $1.12

Days to Expiration 29
Return (Assumes CSP) 2.98%
Annualized Return 37.46%
Downside Protection 8.22%
Effective Dividend if Put 2.75%

Trade - 8/19/09 - HCBK

STO (5) Naked Put - HCBK (HUDSON CITY BANCORP INC) Sep 09 @ $12.50 Strike for $0.20 each. Net Premium $97. This is a regional bank in New Jersey and New York. They are taking advantage of other banks misfortunes. Pull their quarterly and yearly financials and watch how they are growing. Also they are commited to shareholder value and are buying back shares. My BB&T Calls were all taken early so I am looking for some "financial" industry exposure.

Risk Management:

Ticker: HCBK
Expiratoin: 18-Sep-09
Invest Date 19-Aug-09

Current Stock Price $13.42
Strike Price $12.50
Premium $0.20
Annual Dividend $0.60

Days to Expiration 30
Return (Assumes CSP) 1.60%
Annualized Return 19.47%
Downside Protection 8.35%
Effective Dividend if Put 4.88%

Trade - 8/19/09 - TK

STO (2) Naked Put - TK (TEEKAY CORP) Sep 09 @ $17.50 Strike for $0.90 each. Net Premium $179. I currently hold the Aug 15 NPs that will expire this Friday so I am upping my strike point for more premium for the Sept strike. A good niche shipping company with a good dividend. This will be the 3rd month in a row that I have been writing Puts on it.

Risk Management:

Ticker: TK
Expiratoin: 18-Sep-09
Invest Date 19-Aug-09

Current Stock Price $17.90
Strike Price $17.50
Premium $0.90
Annual Dividend $1.27

Days to Expiration 30
Return (Assumes CSP) 5.14%
Annualized Return 62.57%
Downside Protection 7.26%
Effective Dividend if Put 7.62%

Trade (Re-entry) - 8/18/09 - EMR

STO (2) Naked Put - EMR (EMERSON ELECTRIC CO) Sep 09 @ $32 Strike for $0.60 each. Net Premium $119. This is another solid company with a 30+ year track record of raising dividends. They need the economy to turn around to start going up but they have been in a tight trading range for about a year now. The stock was really good to me earlier in the year and I will not hesitate to enter another position on an additional 5% pull back.

Risk Management:

Ticker: EMR
Expiratoin: 18-Sep-09
Invest Date 18-Aug-09

Current Stock Price $34.10
Strike Price $32.00
Premium $0.60
Annual Dividend $1.32

Days to Expiration 31
Return (Assumes CSP) 1.88%
Annualized Return 22.08%
Downside Protection 7.92%
Effective Dividend if Put 4.20%

Trade (Re-entry) - 8/18/09 - VZ

STO (2) Naked Put - VZ (Verizon) Sep 09 @ $30 Strike for $0.79 each. Net Premium $157. I am back in Verizon after a nice pull back. This is a big strong stable steady Eddy company. Also a very nice dividend. If I get put at $30 I will enter more NPs at $28. It won't bother me a bit to play a "Buffet" and hold this one forever.

Risk Management:

Ticker: VZ
Expiratoin: 18-Sep-09
Invest Date 18-Aug-09

Current Stock Price $30.22
Strike Price $30.00
Premium $0.79
Annual Dividend $1.84

Days to Expiration 31
Return (Assumes CSP) 2.63%
Annualized Return 31.01%
Downside Protection 3.34%
Effective Dividend if Put 6.30%

New Trade - 8/17/09 - NYX

STO (2) Naked Put - NYX (NYSE EURONEXT INC) Sep 09 @ $25 Strike for $0.72 each. Net Premium $143. I have Call positions on this one as well at $29 strike and I am taking advantage of almost a 10% pull back in the past week. I like the downside protection and the dividend if put on this one.

Risk Management:

Ticker: NYX
Expiratoin: 18-Sep-09
Invest Date 17-Aug-09

Current Stock Price $27.15
Strike Price $25.00
Premium $0.72
Annual Dividend $1.20

Days to Expiration 32
Return (Assumes CSP) 2.88%
Annualized Return 32.85%
Downside Protection 10.57%
Effective Dividend if Put 4.94%

New Trade - 8/17/09 - XOM

STO (1) Naked Put - XOM (Exxon Mobile) Sep 09 @ $65 Strike for $1.55 each. Net Premium $154. A good pull back today on this stock and I leaped into it. This is a bellweather company that has seen alot of support around the $65 mark all year. This gives me safety and I am now overweight on commodities in my portfolio.

Risk Management:

Ticker: XOM
Expiratoin: 18-Sep-09
Invest Date 17-Aug-09

Current Stock Price $66.62
Strike Price $65.00
Premium $1.55
Annual Dividend $1.68

Days to Expiration 32
Return (Assumes CSP) 2.38%
Annualized Return 27.20%
Downside Protection 4.76%
Effective Dividend if Put 2.65%

New Trade - VALE - 8/17/09

STO (3) Naked Put - VALE (VALE SA) Sep 09 @ $18 Strike for $0.54 each. Net Premium $160. This is an original trade I made on 7/31 but then exited when it spiked up. The stock is down again in sympathy with negative information out about China. I am not worried about that and I am taking this opportunity to get back into a good company.

Risk Management:

Ticker: Vale
Expiratoin: 18-Sep-09
Invest Date 17-Aug-09

Current Stock Price $19.60
Strike Price $18.00
Premium $0.54
Annual Dividend $0.48

Days to Expiration 32
Return (Assumes CSP) 3.00%
Annualized Return 34.22%
Downside Protection 10.92%
Effective Dividend if Put 2.75%

Trade - 8/14/09 - AEM

STO (1) Naked Put - AEM (AGNICO-EAGLE MINES LTD) Sep 09 @ $50 Strike for $1.35 each. Net Premium $134. Putting on some inflation hedges with this one. A good GOLD company that should have plenty of cash flow next year as well as this one. 12%+ downside protection.

Trade - 8/12/09 - CTL

STO (3) Naked Put - CTL (CENTURYTEL INC) Sep 09 @ $30 Strike for $0.70 each. Net Premium $208. This is a continuation of a stock that I traded last month.
Risk Management:
Ticker: CTL
Expiratoin: 18-Sep-09
Invest Date 12-Aug-09

Current Stock Price $31.50
Strike Price $30.00
Premium $0.70
Annual Dividend $2.80

Days to Expiration 37
Return (Assumes CSP) 2.33%
Annualized Return 23.02%
Downside Protection 6.98%
Effective Dividend if Put 9.56%

Partial Closeout - 8/10/09 - IPI

Decided to take 1/2 of my position off the table for IPI August Naked Puts. Bought back 3 NPs at 50 cents each. Sold them for $1.45 each just 10 days ago. 95 cent per share profit on 300 shares is not bad for 10 days (139% annualized).

Closeout - 8/10/09 - NAT

After the disappointing earnings release and outlook from NAT Friday I am closing my 2 open NPs on NAT. Bought them back for $1.15 each so still was able to get them back for 50 cents on the dollar and still made a very nice return on the money. I will now drop out for a little while and look to re-enter this one on any pull back.