Sold 2 Puts TM Nov $50 strike to open at 1.50 crediting my account $300.
My thoughts are that this company had a high near $140 within the last 52 weeks and by far the best of all auto makers IMHO, therefore I wouldn't mind owning this stock at $50, or keep the premium. IMO Toyota is the worlds premium auto manufacturer. If I end up being put the stock at $50, I'll hold the shares. Either way, I'm a happy camper and I'm glad that I can take in a premium for this stock by selling a put at the $50 Strike per share put. WOW! Never thought that I'd see that, but no-one thought that Bear Sterns could fold either! Wish me luck!
Sold 10 Puts GE Nov $10 strike to open at .20 crediting my account $200.
My thought are that Warren Buffet Bought at $20+ with a 10% return, so if I end up being put the stock at $10, while I'm not getting a 10% guaranteed return, I'm still buying the stock 50% below where the oracle bought it, That makes me happy and If I don't Get put the stock, I'll keep the money. I only sell puts on stocks that I would not mind owning at the right price and with GE brand name, I figure if they can get rid of any of the bad balance sheet stuff, even with the recession, $10 will be a good price.
Looking for good prices here possibly near a bottom - Selling puts on dips in this market can be dangerous, but then again everything has risk.
Bought 500 shares of Zwieg Fund - Closed End Fund at $2.70. I bought this because it's down about 75% from its highs and it has a Net Asset Value (NAV) of approx $3.42. So if they were able to close all of their positions today, that would leave me with a tidy .72 profit on a $2.70 stock. Mainly they have thrown the baby out with the bathwater on this one - I believe.
In Conclusion, My thoughts are if I get put stocks, I may end up with a very substantial portfolio at very reasonable prices.
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