Sample Recommendation and Follow-ups

October 2003 Expiration

Sample Recommendations
and
Follow-ups

Date Sold	Stock	Sell Put Option	Symbol	Net Credit	% Out of the Money	Closed	ROI	Profit
8/25/03	SLAB	OCT 25 PUT	QFJVE	.20	42 %	Expires 10/18/03	4.4 %	.20
8/25/03	EBAY	OCT 80 PUT	QXBVP	.45	28 %	Expires 10/18/03	3.9 %	.45
8/25/03	ADBE	OCT 25 PUT	AEQVE	.15	33 %	Expires 10/18/03	3.9 %	.15
8/25/03	KSS	OCT 50 PUT	KSSVJ	.35	18 %	Expires 10/18/03	5.4 %	.35
Average ROI							4.4 %
Annualized Average ROI							26.4 %
Net Profit								$ 1.15

8/17/03 - I am on the hunt for the October Puts. Have some good prospects. By the way, our September plays are doing fine.

8/24/03 - Alright. I have found 4 good plays this month. I have indicated the suggested minimum net credit to seek. Many times you can get a better credit than what I have suggested, thereby increasing your return. As you can see all of the plays with the exception of KSS are a long way out of the money - just the way we like it!

8/30/03 - Everything is going great. All of our plays were filled. Some of you have told me that you got better "Net Credits" - Great job!. SLAB dropped right out of the gate last Monday but by the end of the week was way up, didn't even come close to our strike price. EBAY will do a 2:1 split. The 80 Put will now be considered a 40 Put. You should not worry about that, your broker will make the adjustment.

9/6/03 - Everything is going fine. Just sit back and relax. If anything pops-up, I'll notify everybody.

9/13/03 - EBAY dropped this week but did not even come close to our Strike price. ADBE had a one day drop but is now back up. KSS is down a little bit for the week.

9/20/03 - All of our September plays turned out great. All expired worthless. If you sold 10 contract for each stock, you should have pocketed at least $1,50.00. That is approximately 4.6% in less than two months or about 27.6% annualized. KSS is trending lower. We'll keep it under surveillance.

9/27/03 - All is well. We continue to watch KSS.

10/4/03 - KSS is the only stock that is even close to its Strike. It is still $4 above our Strike price.

10/11/03 - EBAY had a nice run-up this week to above $60. KSS is still $2.65 above our Strike. We have a week to go before expiration and the money is all ours!

10/17/03 - Today is the day. I see nothing to worry about. Sit back, relax, and let the options expire! You keep it all!

10/18/03 - Ahhhh.... Well we did it! Another month of pure premium. You should have raked in at least $1,150 if you traded 10 contracts for each play. OK. I'm going to start working on the next set of plays. See you next week. Now, don't spend it all in one place ;)

Date - Date when Put Option was recommend to be sold.

Stock - Stock symbol of stock option to be sold.

Sell Put Option - Month, Strike, and Option to sell.

Symbol - Option symbol of option to sell.

Net Credit - The price at which option is to be sold (premium).

% Out of the Money - % at which stock is out of the money at time of recommendation.
Formula = 100-(Strike Price/Stock Price)*100

Closed - Date at which the Option expires.

ROI - Return on Investment.
Formula = (Premium*100)/((10%*(Stock Price*100))+(Premium*100))*100

Profit - Amount of premium kept at expiration.

Average ROI - Sum of each ROI divided by the number of ROI's calculated.

Annualized Average ROI - Average ROI multiplied by 6.

Net Profit - Sum of all profits.

Home Disclaimer Privacy Contact Affiliate Program

Investing in stocks, bonds, option and other financial instruments involve risks and may not be suitable for everyone.
Option investing and option trading is not for everyone. Option trading and option investing should only be a part of your overall option education and option strategy.