{"id":3630,"date":"2017-10-03T13:49:11","date_gmt":"2017-10-03T17:49:11","guid":{"rendered":"http:\/\/www.mainstbeatswallst.com\/?p=3630"},"modified":"2017-10-03T13:49:11","modified_gmt":"2017-10-03T17:49:11","slug":"jetblue-buy-write","status":"publish","type":"post","link":"https:\/\/www.mainstbeatswallst.com\/?p=3630","title":{"rendered":"Jetblue “Buy-Write”"},"content":{"rendered":"

I just heard a story on the airlines companies on the “Half Time Report” on CNBC. One of my favorite shows. And my favorite segment is when the Najarian Brothers talk about unusual Activity<\/strong>. They cover stocks that have an unusual amount of options being bought. Today Jon was covering Jetblue (JBLU). He reported that JBLU had thousands of Call being bought with the October and November Strike Prices. This normally means someone knows something and they’re looking for JBLU to move for the next month. With this information I decided to get involved. I didn’t buy options because I don’t buy options often. In fact, extremely seldom! I stayed with my strategy and did a “Buy-Write.” \u00a0I’m looking to make a little on the stock and bring in a premium. JBLU does not have weekly options so I went with the Strike of 10\/20\/17 which is 18 days away. Not a big deal because I got the stock at $19.69, so I won’t have too much money tied up. I bought 1000 shares at $19.69 and sold 10 contracts of the 10\/20\/17 $20 Calls. This option gave me a premium of 45\u00a2 for a total premium of $450. I’ll be in this position for a little over 2 weeks and my Rate of Return<\/span><\/a> on the premium only is 2.2%. If I get assigned, which I think I will, I’ll make another 31\u00a2 on the stock sale. If it goes the way I feel it will, I’ll make the 45\u00a2 premium and the 31\u00a2 on the stock sale for a total of 76\u00a2 on the “Buy-Write.” That would be 76\u00a2 or $760 on the $19.69 stock for a total return of 3.8%. I hope this works this way. This is what I look for when playing this game.<\/p>\n

JBLU “Buy-Write”<\/strong><\/span><\/p>\n

Buy 1000 Shares JBLU @ $19.69<\/p>\n

Sell to Open 10 JBLU 10\/20\/17 $20 C @ 45\u00a2 (+$450)<\/p>\n

 <\/p>\n

I recommend stop listening to these guys selling books claiming to be making $50,000 a week. If I’m making $50,000 a week (Trade Like Chuck) I’m not selling books!<\/p>\n

Slow and Steady, Steady and Slow.The tortoise wins the race!<\/p>\n

What’s wrong with making 3.8% in a little more than 2 weeks? To make a lot more take higher risk trades. Don’t gamble! By the way, if you made 3.8% every 2 weeks it’s 98% a year. Let me know of a hedge fund doing that.<\/p>\n

 <\/p>\n

Steve<\/p>\n

The Options Coach\u00a0<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

I just heard a story on the airlines companies on the “Half Time Report” on CNBC. One of my favorite shows. And my favorite segment is when the Najarian Brothers talk about unusual Activity. They cover stocks that have an unusual amount of options being bought. Today Jon was covering Jetblue (JBLU). He reported that […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1],"tags":[],"class_list":["post-3630","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75MP0-Wy","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3630","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=3630"}],"version-history":[{"count":1,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3630\/revisions"}],"predecessor-version":[{"id":3631,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/posts\/3630\/revisions\/3631"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=3630"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=3630"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=3630"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}