Wednesday, October 26, 2011

Generating Income via Put Selling of November Options

With volatility in options still very high by historic standards, CCI continues to believe it makes sense to pursue the generate of income via put selling.  The past two months CCI has picked 2 option plays for the next month's expiration.  A recap of those trade and this months selections are discussed in this article at

One of these trades is the next step in managing the Alpha Natural (ANR) position previously established by CCI.  The other is another round of selling of Corning (GLW) $13 puts.  

FYI, since that article was written earlier in the week, GLW reported positive earnings and moved up a few percent.  This already makes the GLW put sale profitable.  If those gains in price hold, and the reduction of perceived risk by the passing of the earnings release drops option volatility, CCI will likely cover this position and look to deploy the capital on another put sale in  stock with more option premium.  

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