In The Money Options

In the money options can be in the money puts or in the money calls. There are many in the money options including deep in the money options.

Visa Stock Credit Put Spread Rescue Investor Questions

, Categories: Investor Questions, Visa Stock (V)

Visa Stock Credit Put Spread Rescue Investor Questions

The latest correction in stocks has caught a lot of investors off guard. When holding naked puts, often the first line of defense is a roll down as stock valuations fall and place naked puts in the money. For those with credit put spreads often the fall of a stock can make rolling down more difficult if investors who sell credit spreads have sold more put credit spreads than they would normally have capital available to actually cover. The dollar return or actual income earned…

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Gilead Sciences Stock (GILD) Is It Over or Undervalued – Investor Questions

, Categories: Gilead Sciences Stock (GILD), Investor Questions

Gilead Sciences Stock (GILD) Is It Over or Undervalued – Investor Questions

Once in a while an interesting stock appears when an investor writes in. The most recent question came from an investor interested in Gilead Sciences Stock which trades under the symbol GILD on the NASDAQ. Gilead Sciencesis a research-based biopharmaceutical company that discovers, develops and commercializes medicines with a primary focus on human immunodeficiency virus (HIV)/AIDS, liver diseases, such as hepatitis B and C and cardiovascular/metabolic and respiratory conditions. They operate in North America, Europe and Asia Pacific with sales of $11.2 billion. They are…

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Target Stock – Understanding Rolling ITM Naked Puts and Closing Naked Puts Early For Optimum Return

, Categories: Investor Questions, Target Stock (TGT)

Target Stock – Understanding Rolling ITM Naked Puts and Closing Naked Puts Early For Optimum Return

2013 was an easy year for selling puts against Target Stock and there was one stock trade. By the year-end the return was 24.7%. This year though retail stocks look weak and the credit card debacle certainly has hurt Target stock. Meanwhile though I have continued with my strategy of selling naked puts. An investor wrote in recently to ask about his position. Let’s take a look at his Target Stock position and then explain what I think would have been strategy to employ. Investor…

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Controlling Losses By Rolling Naked Puts Down

Categories: Apple Stock (AAPL), Selling Put Options

Controlling Losses By Rolling Naked Puts Down

This is a strategy article for FullyInformed Members that discusses why rolling naked puts down is key to controlling loss of capital. The recent downturn in Apple Stock on September 11 placed my naked put strikes at the $480 put into the money and left my positions at risk of possible assignment. While the risk of assignment in Apple Stock is quite low, even on deep in the money naked puts, until close to option expiry or sometimes shortly after a dividend is declared, it…

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Bank of Nova Scotia Stock (BNS) – The Ultimate Stock

, Categories: Bank of Nova Scotia Stock (BNS)

Bank of Nova Scotia Stock (BNS) – The Ultimate Stock

Investors who use various strategies to earn income from stocks are always looking for the Ultimate Stock. Investors are seeking stocks that can provide income while at the same time control risk of loss to their invested capital and they want a stock that is easy to implement strategies against. Not many stocks can meet that criteria, but Bank Of Nova Scotia Stock (BNS) can. I have been trading within BNS Stock for decades but the past 3 years have shown how incredibly easy this…

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In The Money Naked Puts and 3 Rescue Strategies

Categories: Investor Questions, Kinder Morgan Energy Partners Stock (KMP), Profit And Income Strategies

In The Money Naked Puts and 3 Rescue Strategies

Sometimes when investors sell naked puts they assume a stock is in a long-term uptrend only to find out that it is not.  When the stock falls, the investor ends up with in the money naked puts that are often deep and at risk of assignment. Recently an investor wrote to me regarding his KMP Stock (Kinder Morgan Energy Partners Stock) which he had sold puts at, watched the stock pull back and failed to act quickly to protect himself from losses. Now sitting with…

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Selling In The Money Put Options For Substantial Profits on BNS Stock

, Categories: Bank of Nova Scotia Stock (BNS), Selling Put Options

Selling In The Money Put Options For Substantial Profits on BNS Stock

I keep a watch list of favored stocks that have established trading ranges. Throughout the year those stocks often pull back and I take those opportunities to sell in the money put options for what are always excellent put premiums. A lot of investors frown on selling in the money put options for fear of being assigned shares at higher prices than where a stock is presently trading. But I look upon selling in the money put options as a win-win situation. The stocks I…

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Deep In The Money Naked Puts Rescue Strategy For ABX Stock

, Categories: Barrick Gold Stock (ABX), Intel Stock (INTC), Naked Calls, Stock And Option

Deep In The Money Naked Puts Rescue Strategy For ABX Stock

This is a FullyInformed Members strategy article on rescuing deep in the money naked puts. The recent plunge in gold has left a lot of investors holding naked puts on gold miners that ended up deep in the money. Recently an investor wrote me regarding his Barrick Gold Stock (ABX) as he was left holding naked puts at $30 and $29 put strikes that were deep in the money. He rolled those puts into October but was wondering what I might suggest for handling these…

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Intel Stock and Adjusting In The Money Naked Puts

Categories: Intel Stock (INTC)

Intel Stock and Adjusting In The Money Naked Puts

Recent stats on Intel Stock continue to show the majority of analysts are bearish on Intel Stock. Of 36 analysts following Intel Stock only 4 have it rated a buy and 22 have left it as a hold. Standard and Poors released a report recently where they set their 12 month target price on Intel Stock at $23 basing it on their projection that earnings will be $2.04 a share in 2014 resulting in a PE of 11.3 times. They see no growth in 2013…

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Deep In The Money Puts Rescue Strategy With Naked Calls

, Categories: Cliffs Natural Resources Stock (CLF), Profit And Income Strategies

Deep In The Money Puts Rescue Strategy With Naked Calls

This is a FullyInformed Members strategy article delving into a rescue strategy for a trade where the investors got caught in a downturn and is holding deep in the money puts. Once in a while a stock falls so quickly that investors who have sold naked puts don’t have the chance to buy them back and roll down. Other times they do buy them back and roll down but the collapse of the stock is so swift that they cannot roll down quick enough or…

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Rolling In The Money Puts on ABX Stock Part 1

Categories: Barrick Gold Stock (ABX), Selling Put Options

Rolling In The Money Puts on ABX Stock Part 1

I have been receiving a lot of questions on the Put Selling of ABX Stock (Barrick Gold Stock) and with a number of investors caught holding in the money puts with the pullback in both gold and ABX Stock, I thought I would answer some of the questions asked in two parts. Both Part 1 and Part 2 are strategy articles and are for FullyInformed Members. The first article looks at Rolling In The Money Puts on ABX Stock for those investors who want to…

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Clorox Stock ends In The Money Puts with Momma Strategy

, Categories: Clorox Stock (CLX)

Clorox Stock ends In The Money Puts with Momma Strategy

I have used the Walk That Profit Home To Momma Strategy on Clorox Stock since January. I started with selling in the money puts at the $75.00 strike on January 7. I followed up on January 18 selling the $77.50 put strike and then on January 31 I sold the Clorox Stock $80 naked puts. All of these were in the money at the times and all were for February. Clorox Stock meanwhile has risen steadily and on Friday it closed at $81.70. Clorox Stock…

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Rolling In The Money Puts Decision-Making Process

Categories: Aflac Stock (AFL), Selling Put Options

Rolling In The Money Puts Decision-Making Process

I receive a lot of emails asking about how to decide on rolling sold in the money puts. This is a strategy article for FullyInformed Members that looks at the decision-making process for rolling sold in the money options. Here is a good example of a recent email on rolling sold in the money put options. “Teddi; I always have trouble deciding what to do when puts I have sold fall in the money. You always seem so calm and self-assured. How can I get…

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Selling In The Money Put Options For Income Successfully In Clorox Stock

, Categories: Clorox Stock (CLX), Selling Put Options

Selling In The Money Put Options For Income Successfully In Clorox Stock

Selling in the money put options generates enormous returns that far exceed selling out of the money puts. Throughout January 2013 for example, I have sold in the money put options on Clorox Stock as the stock has been rising. The strategy of selling in the money put options makes a lot of sense when you understand the risks that are associated with the strategy. A stock like Clorox Stock makes an ideal candidate for in the money Put Selling with its $2.56 annual dividend,…

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YUM Stock 2012 Trades

Categories: Yum Stock (YUM)

YUM Stock 2012 Trades

YUM Stock has only been in my portfolio since 2009. YUM Stock symbol is YUM and it trades on the New York Stock Exchange. YUM Brands operates fast food outlets in 120 countries and territories around the world. It has three main concepts of KFC, PIZZA HUT and TACO BELL. YUM Brands is a profitable company in the Cyclical Consumer Goods & Services sector and Restaurants industry. Earnings per share is growing but not as rapidly as in prior years. This could be a result…

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