March 20th, 2011
Greetings and Welcome aboard to all new subscribers.
“*IMPORTANT* Please review our definitions in order to get acquainted with language we will be using”
Feel free to look at our past issues because many trades last multiple months.
Congrats to those who followed and made $ last month.
New Picks:IDCC@ $41.78
Sell to Open IDCC April 2011 $38.00 PUT @$1.30 Limit Good until Canceled. (3.42%)
InterDigital, Inc.(IDCC) engages in the design and development of digital wireless technologies for use in cellular and
wireless IEEE 802 related products. It also develops solutions for enhancing bandwidth availability and network capacity,
wireless security and seamless connectivity, and mobility across networks and devices. In addition, the company licenses its
technologies and mobile broadband modem solutions (modem IP, know-how, and reference platforms) to mobile device
manufacturers, semiconductor companies, and other equipment producers that manufacture, use, and sell digital cellularp
roducts. InterDigital solutions are incorporated in various products, including mobile devices, such as cellular phones,
wireless personal digital assistants and notebook computers, and data cards; base stations and other wireless infrastructure
equipment; and components for wireless devices. I expect this company’s share prices to fall in the near term, but I can’t overlook their fundamentals.They have enough cash on hand to run 10 quarters (!) without a single sale, they have a great profit
margin, and they are cutting edge in technology.This is a multi-month play.
TNA @ $73.90
Sell to Open TNA April 2011 $55.00 Put @ $1.30 Limit, Good until Canceled. (2.36%)
The fund seeks daily investment results, before fees and expenses, of 300% of the price
performance of the Russell 2000Â® Index. The fund will invest at least 80% of assets in securities that comprise the index. It will also utilize financial instruments that, in combination, provide leveraged and unleveraged exposure to the index. The fund is non-diversified.
We have been making money on TNA for a long time. I expect this stock to fall in the short-term as well. We are 19 steps “Out of the Money”.
How did we do last month?
CLDA did not sell at our limit price.
AGNC got Put to us, so now we sell the Call.
AGNC @ $30.67
Sell to Open AGNC April 2011 $30.00 Call @ .65c Limit, Good Until Canceled.
(2.21% Plus the 5.70% from the Put = 7.91%)
TNA got Put to us @$77.00 (3.31%)
TNA @ $73.90
Sell to Open TNA April 2011 $80.00 Call @ $3.10 Limit, Good until Canceled ( +4.02%)
Other Old Open Positions:
CAGC @ $6.88
Sell to Open CAGC May 2011 $8.00 Call @ .70c Limit, good until Canceled.
We are already up 19.64%, this will add another .0875%
VVUS @ $6.35
We have collected $5.92 from
selling Options on this Stock so far, 84.57% return …so far!
Sell to Open, VVUS June 2011 $8.00 Call @ .35c Limit, Good until Canceled.
GDXJ @ $36.90
We have collected $2.71 on this stock so far, a 7.13% Gain
Sell to Open, GDXJ April 2011 $38.00 Call @ $1.10 Limit, Good until Canceled. (+2.89%)
Until next time.
The Options Oracle
Brad Lee AKA “The Options Oracle” and “The Money Medic” is an individual investor who does not manage money for any financial institution. You are purchasing the list of stocks that he uses to select options contracts he feels will return him the highest, safest profits. Brad is not a broker, or financial adviser. He is a remarkable investor who has developed a successful strategy for himself, and is willing to share some of his magic with you. We urge you to paper trade these picks and learn how to develop a strategy that is appropriate for you. Thank
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