Hi Steve,
Yesterrday I got in at 69.95
Happy Thanksgiving

Hi Dan – I don’t know what the “best” way is to use options on this. But, I can tell you what I did this morning. I sold the CAH Mar 17 70 strike Put and bought the Mar 17 65 Put for a net credit of $1.78. This is a very conservative trade. The most I can make is $178 per contract. I can loose $500 per contract, less the $178 I made by selling the spread, or $322. But, I can make my profit without CAH increasing in value. In other words, all I sold was time, which will keep marching on. Of course, if the stock goes down in value, I can loose up to $322 per contract. But, since Jim Pearce thinks the stock will go to $82, it is a risk I am willing to take, since I make my maximum profit if CAH stays above $70. This type of trade is used frequently, with much success, by Jim Fink in his Options for Income publication. Tell me what you decide to do. Howie

Hi Dan, I like to be helpful, but I have a disclaimer I am not an Outstanding Options Trader although I do trade them. I can give you some interesting sources of free info on them but first here is what I did in my ‘regular’ acc yesterday. I feel better about it now sincce CAH has gone up and I am making some moolah already. I bought the Call CAH Jan 20 2017 70 I paid 2.51 it seemed like a lower price comparing with others. I took the approx holding time, to pick an expiration. It is 58 days to expiration.
Now for the option tips this sounds like an odd name, but google TASTY TRADE, and also look up Dough I like the free recs from Tom Preston from dough.
hope that is helpful
Happy Thanksgiving

Hi Dan:
First let me say that I am still learning about options and spreads by doing since joining OFI 2 years ago.
Here are the results of my experience/experiments with SW trades:
LMAT bought the stock@ $20
BMA bought and sold the stock per SW with a little loss
GNC sold naked put and got assigned cost $13.27 (incl commision)
Dlph sold naked put, expired did not enter another one cuz it had run up
VLO sold 2 rounds of naked puts, last expired 11/18/16 when Jim sent alert to sell VLO got $$$ 🙂 Thanks Jim.
BKE sold put spread 25/22.50 got assigned, cost $23.29 (Incl commission) (Thanks, black arrow for the encouragement).
RGR and CAH bought the stocks.
Buying the stocks is more capital intensive but the actual $ gain is bigger than options but the ROI is higher with options. I guess I prefer actual $ than a theoretical return.
Also, I cannot trade spreads on my tax deferred account, only cash secured naked puts, so the actual after tax return is better with naked puts and stocks for me. And since SW has a fast turn around, these are short term gains (or loss–we hope not), and for me, is better palced in a tax deferred account.
I hope this helps

PS The other down side I see to trading options is you can be left holding the options/stock at a time when Jim issues an alert to sell.

Having lived in the Boston area for a number of years; if we pronounce the ticker symbol CAH, thats how people from that area pronounce Car.
Lets see I did CAH two ways. I bt the stock, so Far my gain is 1.64% based on my entry price have made 115.01.

Then in an effort to spend less $, I bt the 20 Jan 17 70 call my purchase price was 2.51 and last price was 3.10 today I gained $157.50 % wise it was up 20.19% cumulative this one is up 169.50 and 22.51%. [the 20 means the date of expiration in January which is out abt 56 days. 17 refers to the year 2017, 70 is the ‘strike price’, at this point it is ITM: In-The- Money. When I bt it it was near the $ my assumption was it could increase. Tasty Trade has made studies showing the optimum number of days is 41 this would point to the earlier expiration date in January.

I didn’t see one either but it always can be helpful to be obssesive

I keep checking the Investing Daily website for New Alerts before they get sent out. 🙂

Happy Turkey Day everyone.

I usually have the web page open as I watch the market.
Got in when Jim posted it up here.
It wasn’t too long after that when I got the text alert on my phone for it.

Not that I know of, but I am watching it closely to see what emerges. Could just be general fear over Trump going after the drug companies, which I think is over blown in which case we may get a bounce once earnings do come out (CAH is scheduled to release earnings on 2/7).

Was there an alert on the raise in stop loss price that I missed? If there was no alert, I think it would be a good idea to have one whenever you are making a changes like this or it could get missed. Just my two cents.

Nice trade Roger. Glad to hear it!

Nice!