Nucor Stock (NUE) Trades For 2013

Nucor Stock has been in my portfolio since 2010 and this marks year 4 of trading within Nucor Stock. Nucor Stock symbol is NUE. Nucor specializes in the sale of steel and related products in North America. Nucor stock has seen 39 consecutive years of dividend increases. To start off 2013, investors seem convinced that Nucor Stock will move higher as the economy improves. The stock is already climbing along with the general stock market direction which is moving up to start the new year.

Last year in 2012 the returns were spectacular with a gain of 25% between put selling and a handful of stock trades using the Bollinger Bands Strategy Trade. Nucor stock however has not recovered from the highs of 2008 when it was trading around $83.00 before the collapse. During the bear market, Nucor Stock lost 69.7% of its value, falling to a low of $25.25 in November 2008.

Nucor Stock Daily Chart in 2012

In 2012 the stock collapsed in the late Spring into the Summer months and then began a recovery into late December. The trading range for the year is shown below. Several times I purchased shares using the Bollinger Bands Strategy Trade as I feel the stock is undervalued or on sale below $38.00. These trades worked out especially well. Meanwhile the volatility in Nucor stock is such that put selling premiums have remained strong, also adding to the profitability. 2013 should be an interesting year.

Nucor Stock 2012 Daily Chart

Nucor Stock Daily chart for 2012

Nucor Stock (NUE Stock) Investment Strategy For 2013

By now, I have made enough income in my trading to pretty well pay for 500 shares, so every time I sell 5 naked puts, the cost basis is almost zero. I will therefore be selling puts more aggressively in Nucor Stock now that I have made so much income to date. I can afford to take a bit more chance with Nucor Stock when Put Selling and stay closer to at the money than in prior years. Meanwhile though I will still be doing my best to avoid assignment of shares. The other strategy I will use is the Bollinger Bands Strategy Trade which you can review through this article for trading the stock when I believe it is on the verge of a bounce back. Between these two strategies I am expecting good returns again in 2013. Whether they will be as good as in 2012 I am unsure.

Nucor Stock (NUE Stock) Trades For 2013 – Year 4

Nucor Stock (NUE Stock) TRADE STATS:
Capital Currently In Use:
$47015.00
Income Earned in 2013: $17549.50
Total Income Earned Since Trade Started In 2010: $38941.75
Total Of My Own Capital Required If All Naked Puts Were Assigned: $8073.25
Number Of Shares If All Naked Puts Were Assigned: 1000
Share Price Valuation(Total Capital Required/Number of shares): $8.07

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Review Nucor Stock Trades For 2012
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Review Nucor Stock Trades For 2010
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Date Stock At
Time Of
Trade
Action Taken (All Figures Are US Dollars)
ACTIVE TRADES ARE HIGHLIGHTED
Comm. Shares
Held
Capital
In Use
Gain/Loss Total
Income
Dec 7 2012
40.40 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 19JAN13 $38 Strike for $.85 (status: expired)
13.25 19013.25 411.75 21127.25
The above is the remaining trades from 2013. You can review Nucor Stock 2012 Trades through this link. Total capital earned in 2012 = $9494.25 / $38000.00 capital in use = 24.98% return

All Nucor Stock Trades Below Are in 2013
Commission $1.00 per contract + $5.00 per trade
Jan 3 44.75 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 16FEB $43 Strike for $0.95 (status: expired) 15.00 43015.00 935.00 22062.25
Jan 18
47.52 Jan Options Expiry: 5 Naked Puts $38 expired
21127.25
Feb 4 46.10 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 16MAR13 $43 Strike for $.67 (status: expired) 15.00 43015.00 655.00 21782.25
Feb 15 48.20 Bought 15 Nucor Stock 16MAR13 $45 Puts for .42 cents
Comments: This is an unusual trade for me as I rarely buy puts or calls. However the stock has been at this level back on January 23 and it is too high a level I believe, to be maintained. Now back at the Upper Bollinger Band I am expecting this will turn out to be a great trade as Nucor Stock should pull back towards the Lower Bollinger Band. This is in keeping with my Bollinger Bands Strategy Trade (Status: sold for $2.25 on Feb 26 – profit $2730.00)
15.00 (630.00)
Feb 15 48.12 Feb Options Expiry: 10 naked puts $43 expired
Feb 25 43.80 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 16MAR13 $43 Strike for $0.95 (status: expired) 15.00 43015.00 935.00 22717.25
Feb 25 43.80 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 20APR13 $42 Strike for $0.90 (status: expired)
15.00 42015.00 885.00 23602.25
Feb 26 43.55 Sold 15 Nucor Stock 16MAR13 $45 Puts for $2.25
Comments: A very nice return on these puts. The stock though it sold off yesterday has today pushed inside the Lower Bollinger Band which I believe is a signal that the stock wants to rebound from here. I sold my puts and I have bought some stock. I bought the stock rather than the calls because if I am wrong and the stock falls, I can easily sell in the money covered calls, collect perhaps the next dividend payment which is in March and then be exercised out. The calls on the other hand are wasting assets and if the stock falls or moves sideways the calls will lose value. As it is hard to know which way is best I am buying shares instead. This is why it is nice to have cash always available. For these short little trades it comes in handy.
15.00 3360.00 2730.00 26332.25
Feb 26 43.55 Bought 500 shares Nucor stock using the Bollinger Bands Strategy Trade for $43.55
Comments: See the comments above for Feb 26 to understand why I bought stock today instead of calls.
5.00 500 (21780.00)
Mar 12 47.50 Sold 500 shares Nucor Stock for $47.50.
Comments: The stock is looking weak here. This is the third day of going sideways. I am selling here in lieu of Nucor stock reaching the Upper Bollinger Band.
5.00 0 23745.00 1965.00 28297.25
Mar 14 45.75 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 20APR13 $43 Strike for $0.65 (status: assigned)
Comments: Here is the trade alert on this trade.
10.00 21510.00 315.00 28612.25
Apr 1 44.95 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 20APR13 $43 Strike for $0.38 (status: assigned)
Comments: Here is the trade alert on this trade.
10.00 21510.00 180.00 28792.25
Apr 2 43.50 Sell To Open (STO) Put Selling 3 Nucor Stock Naked Puts 20APR13 $42 Strike for $0.60 (status: expired)
Comments: Here is the trade alert on this trade.
8.00 12608.00 172.00 28964.25
Apr 2 43.50 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 20APR13 $41 Strike for $0.39  (status: expired)
Comments: Here is the trade alert on this trade.
10.00 20510.00 185.00 29149.25
Apr 4 43.00 Bought 500 shares for $43.00
Comments: The stock is trending the Lower Bollinger Band but refuses to break through it. It’s because this is much stronger support here. I bought 500 shares for a bounce back to $44.00 which I think the stock will do within a couple of days. I have put in my offer to sell at $44.00
5.00 500 (21505.00)
Apr 4 44.00 Sold 500 shares for $44.00
Comments: Well this is nice. I did not even get a chance to send out the trade alert! The stock hit $43.00 and bounced immediately back. I was taken out of my trade while I was busy writing the trade alert article!
5.00 0 21995.00 490.00 29639.25
Apr 18 41.75 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 18MAY13 $42 Strike for $1.30  (status: expired)
Comments: Here is the trade alert on this trade.
Comments: Per this article, I sold naked puts on Nucor Stock today.
10.00 21010.00 640.00 30279.25
Apr 19 42.38 Options Expiry: 10 Naked puts at $43 assigned  (status: Holding July $43 covered calls against this stock – see May 21)
5 naked puts at $41 expired / 13 naked puts at $42 expired
Comments: Rather than roll the $43 I took assignment since I was going to buy shares this morning when the stock got down below $42. I figured there was not much point in applying more capital by buying shares when I can accept 1000 shares instead. I will be waiting for a bounce back before selling these shares or selling covered calls.
10.00 1000 (43010.00)    
May 17 45.77 May Options Expiry: 5 naked puts $42 strike expired          
May 21 47.00 Sell To Open 10 Covered Calls July $43 for $5.10 (status: Exercised July 19 for $43)
Comments: I sold covered calls rather than unload the stock as it paid more premium than selling at $47 and I might just pick up the June dividend payment and the stock might fall back to below $43 by July and allow me to sell covered calls again.
15.00 1000   5085.00 35364.25
May 22 45.65 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 22JUN13 $44 Strike for $.55 (status: BTC Jun 21 for .15)
10.00   22010.00 265.00 35629.25
Jun 6 44.10 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 22JUN13 $43 Strike for $.46 (status: expired)
10.00   21510.00 220.00 35849.25
Jun 21 44.00 June Options Expiry $43 naked puts expired
Jun 21 44.00 Buy To Close (BTC) 5 Nucor Stock Naked Puts 22JUN13 $44 strike for .15 10.00 (85.00) 35764.25
Jun 21 44.00 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 20JUL13 $44 Strike for $1.25 (status: expired)
10.00 22010.00 615.00 36379.25
Jun 26 43.66 Dividend paid 1000 shares X .3675 367.50 36746.75
Jul 16 44.50 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 17AUG13 $43 Strike for $0.47 (status: expired)
10.00 21510.00 225.00 36971.75
Jul 19 45.64 July Options Expiry $44 naked puts expired
10 X $43 covered calls exercised
Comments: This is from the May 21 trade where rather than selling my shares for $47 I sold the covered calls for $5.10 instead.
20.00  0 36971.75
Aug 16 46.92 August options expiry 5 naked puts $43 expired
Comments: Stock is overvalued in my opinion and I will wait for it to pull back before selling more puts
Sep  3 45.55 Bought 500 shares of Nucor Stock at $45.55 per this article. (status: sold for 46.72 – Sep 5) 5.00 500 (22780.00)
Sep 3 45.55 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 19OCT13 $43 Strike for $0.78 This Put Selling trade on Nucor Stock is as described per this article.  (Status: BTC Sep 19 for .4 cents) 15.00   43010.00 770.00 37741.75
Sep 5 46.72 Sold 500 shares of Nucor Stock at $46.72 5.00 0 23355.00 575.00 38316.75
Sep 19 51.00 BTC 10 naked puts Oct 19 expiry $43 strike for .04 15.00 (55.00) 38261.75
Sep 27 48.44 Sell To Open (STO) Put Selling 5 Nucor Stock Naked Puts 19OCT13 $46 Strike for $0.33 (Status: expired)
Comments: This article discusses this trade.
10.00   23010.00 155.00 38416.75
Oct 10 48.00 Sell To Open (STO) Put Selling 10 Nucor Stock Naked Puts 1613 $47 Strike for $0.54 15.00 47015.00 525.00 38941.75
Oct 18 51.09 Oct Options Expiry: $46 naked puts expired

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