{"id":8600791,"date":"2014-10-21T09:27:07","date_gmt":"2014-10-21T13:27:07","guid":{"rendered":"http:\/\/www.philstockworld.com\/?post_type=toptrades&#038;p=8600791"},"modified":"2024-10-23T14:20:07","modified_gmt":"2024-10-23T18:20:07","slug":"top-trades-for-tue-21-oct-2014-2","status":"publish","type":"post","link":"https:\/\/www.philstockworld.com\/2014\/10\/21\/top-trades-for-tue-21-oct-2014-2\/","title":{"rendered":"Top Trades for Tue, 21 Oct 2014 09:25"},"content":{"rendered":"<blockquote>\n<p>\n\t\tSDRL\/Yodi &#8211; Keep in mind this is a function of low oil prices, which come and go over time and not a particular flaw in the business. &nbsp;I assume the short 2016 puts are the $30s and it looks to me like the 2017 $23 puts are $8.50 so I&#39;d spend $3 of the $4.70 you collected to drop the strike 20%. &nbsp;That leaves you with the stock at $35 less the short calls ($2?) and the $1.70 left from the short $30s is net $31.30\/27.15 and, if you sell the $30s for $2.25, that drops you to net $29.05\/26.03. &nbsp;If they keep up their dividend ($4), it still makes for a nice hold as you&#39;re getting 13.7% while you wait. &nbsp;You can be more aggressive on the call sale but the $25s are only about $1 more and I don&#39;t think it&#39;s worth it. &nbsp;\n\t<\/p>\n<p>\n\t\tAlthough, interestingly, as a new trade idea, since the SDRL 2017 $25 calls are $3.30 and the 2017 $30 calls are $2.25 &#8211; &nbsp;I love buying 20&nbsp;of those&nbsp;spreads for $1.05 ($2,100 but&nbsp;$1.25 would be fine) and selling 5 of the short 2017 $13 puts for $3.20 ($1,600) and then you are in $10,000 of long spreads for net $500 and your worst case is owning 500 shares of SDRL for net $14, which is 39% off this already low price.\n\t<\/p>\n<p>\n\t\t<img decoding=\"async\" src=\"http:\/\/www.finviz.com\/chart.ashx?t=sdrl&amp;ty=c&amp;ta=1&amp;p=d&amp;s=l\" style=\"height: 243px; width: 500px;\" \/>\n\t<\/p>\n<p>\n\t\tWhat a fantastic way to profit from Yodi&#39;s pain!&nbsp;<img loading=\"lazy\" decoding=\"async\" alt=\"cheeky\" height=\"20\" src=\"http:\/\/www.philstockworld.com\/wp-content\/plugins\/ckeditor-for-wordpress\/ckeditor\/plugins\/smiley\/images\/tongue_smile.gif\" title=\"cheeky\" width=\"20\" \/>\n\t<\/p>\n<\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>SDRL\/Yodi &#8211; Keep in mind this is a function of low oil prices, which come and go over time and not a particular flaw in the business. &nbsp;I assume the short 2016 puts are the $30s and it looks to me like the 2017 $23 puts are $8.50 so I&#39;d spend $3 of the $4.70 [&hellip;]<\/p>\n","protected":false},"author":8,"featured_media":12387615,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[26305],"tags":[],"class_list":{"0":"post-8600791","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-top-trades"},"_links":{"self":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/8600791","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/comments?post=8600791"}],"version-history":[{"count":0,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/posts\/8600791\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media\/12387615"}],"wp:attachment":[{"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/media?parent=8600791"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/categories?post=8600791"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.philstockworld.com\/wp-json\/wp\/v2\/tags?post=8600791"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}