CLOSING the 6/7 Options Action Trade - $MCD - scott

20 july - was touch and go there at the beginning but if you stuck it out this put sale expired today at max profit. if you can keep the attitude of "i wouldnt mind owning the stock if it goes lower" when it ACTUALLY goes lower then selling puts is almost always a win-win strategy.

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29jun - was kind of scary for a bit there, but youre up about 40% if you are still holding this..Puts going for .85ish now with stock near 88.50. like i said below, i like put sales but prefer to do them with a bigger return,,ie higher IV stocks.

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7 jun - scott has a trade on MCD on tonights Options action segment.

Sell the July 87.50 put for $1.30

Selling puts is good way to enter into stocks at a lower cost basis. not mentioned is that you need to set aside enough buying power / margin to be able to actually buy the stock at $87.50 if you get "put the stock" at opex.. so figure $8750 for each put you sell.. so if that is a good enough of a return till july opex...earning $130 on $8750 then go for it.. seems like a bit low vs some other strategies and other stocks.. also if the stock drops that low, people always seem to change their tune and dont want to own the stock at that level.
    if you have a bullish thesis till july opex, i would make this a  risk reversal instead of just a put sale.. with same margin needed.. such as sell the 87.50 put and buy the july 90call.. for about zero cost.

scott's on-air trades in a google docs spreadsheet

CLOSING the $UNH Options Action trade - mike

20 sep - going to close out this trade. if you followed and took no action since this aired in June will be another full loss. my usual comment is that if you go out that far to keep trying to sell front month calls against it to lower your cost basis. stock down a few bucks since trade entry. see all of mike khouws on-air trades in this google docs spreadsheet

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8aug -  been 2months since this trade was shown on-air and if you followed and are still holding the SEP call, its worth about 10cents..so 85% loss if you did not sell an Aug call against it to roll the calender trade. still 5weeks to go for SEP opex but not looking good

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6jun - on show tonight mike discusses a calender spread for UNH , there the video video clip doesnt explain the trade very much, but its a call calender

Buy the July / September 60 call calender (buy the Sep, sell the july) for .85

cant say i follow the stock or the sector so dont have much to say about it.. do like the trade setup, would look to also sell an Aug 60 call after July Opex to reduce the premium more depending on where stock is then.

mikes on-air trades in a google docs spreadsheet

CLOSING the Options Action trade - $LMT - mike

20 SEP - pretty skillful job picking the exact bottom for buying a put, this trade will be another max loss if you followed and took no action along the way. stock is near 91 now. no surfing dog, wrestling bears, or giant crab sandwich videos to go with this one.(if you watch the show you will know what that means) see all of mikes on-air trades in this google docs spreadsheet

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7aug - ouch!! this Put is worth about 10cents so you are down 95% if you followed this recommendation and are still holding.. pretty much nailed the bottom on this call. still 5+ weeks to SEP opex but not looking good so far. i can see why the options action guys have stopped giving trade recommendations on their Fast Money hits.

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5jun - on tonights Options Action segment , mike has a trade for LMT, as usual goes way out in time.. thus allowing 3-4 months of not revisting the trade im sure.

Buy the Sep 75 Put for 2.30

Brian calls him out mentioning a put spread instead, mike recommends that if trade moves in your favor to leg into a put spread.. sure that works, but im in the camp of not trying to be too cute with the trades, i would rather not commit the capital upfront so i would put on a put spread from get go. My alternative to this if you were committed to that 75 level would be to reduce the cost of the Put by making this a series of calender Put spreads.. sell the July 75 put for .75 as well.. then doing it again based on strikes in August... $2.30 is steep for a directional bet... $2300 if you do a 10lot so id look for ways to reduce that premium outlay

google docs spreadsheet of MIkes On-air trades