Green men are what the Ukrainian people are calling the Russian soldiers moving into Ukraine because they have removed all their insignias from their green uniforms. There is nothing to identify them as Russians except maybe their Russian language and the Russian armored personnel carriers and tanks that are transporting them.

S&P futures are down slightly on Sunday night as a result of the increase in tensions in the Ukraine. Putin moved in 3 more battalions of Russian troops and equipment. Germany has ratcheted up their calls for the defense of the Ukraine and the EU leaders are meeting to consider new and stronger sanctions on Russia.

There is a good possibility this will blow over like the last three months of Ukrainian headlines but you never know. Eventually geopolitical events have a way of spiraling out of control and they have been known to turn into wars.

NATO is meeting later in the week and nations bordering Russia are already asking for new defenses and thousands of additional NATO soldiers. While I doubt NATO will want to get involved in a conflict with Russia there is always one side that does not want war.

If tensions remain stable over the next couple of days the U.S. markets should continue to move higher. This is the first week of the month and the first week of the fall trading season. Fund managers with 45 days of trading left before their October 31st fiscal year end will be chasing prices and restructuring portfolios with a vengeance. As long as European headlines don't turn ugly we could see some price chasing once the Dow moves through resistance to a new high.

We want to keep our eye on the ball and be ready to exit if conditions warrant. If the rally does continue I will keep advancing the stop losses to take us out with a profit.

Jim Brown

Send Jim an email



Current Portfolio


Current positions

Covered Calls

Long Term Positions


Current Position Changes


GILD - Gilead Sciences (Closed)

Gilead is running away from the pack and our short September $90 put had declined to 20 cents and no longer worth the risk and margin to keep it open. I recommended we close the position last Tuesday.

Closed Sept $90 Put, entry $2.78, exit .17, +2.61 gain.



YY - YY Inc (Stopped)

YY declined on Friday to hit our stop loss at $83.65. We exited the position with a small gain.

Closed Short Sept $80 put, entry $2.50, exit $1.65, +.85 gain.



New Short Put Recommendations


TKMR - Tekmira Pharma

Takeover speculation is swirling around TKMR as its Ebola drugs move closer to reality. At least four drug companies are rumored to be considering a run at TKMR including Glaxo Smith Kline and Shire Pharma.

sell short Oct $17.50 put, currently $1.60. Stop loss $17.30



PRTA - Prothena Corp

Prothena is a clinical stage biotechnology company focused on commercialization of antibodies for the treatment of diseases involving proteins. They are making a major presentation at a conference on the 9th regarding Parkinson's disease.

Sell Oct $20.00 put, currently $1.05, stop loss $20.55



New Covered Call Recommendations


TKMR - Tekmira Pharma

Takeover speculation is swirling around TKMR as its Ebola drugs move closer to reality. At least four drug companies are rumored to be considering a run at TKMR including Glaxo Smith Kline and Shire Pharma.

Buy-write Oct $22.50 call, currently $21.30-$2.45, stop loss $17.30
Gain if called $3.65



NBIX - Neurocrine Biosciences

Neurocrine Biosciences, Inc. discovers, develops, and commercializes drugs for the treatment of neurological and endocrine-related diseases and disorders in the United States. It develops drugs for endometriosis, tardive dyskinesia, uterine fibroids, stress-related disorders, pain, diabetes, insomnia, and other neurological and endocrine-related diseases and disorders.

The company has several drugs moving into stage 2 or 3 development.

Buy-write Oct $17 call, currently $16.31-$1.00, stop $14.65
Gain if called $1.69



PRTA - Prothena Corp

Prothena is a clinical stage biotechnology company focused on commercialization of antibodies for the treatment of diseases involving proteins. They are making a major presentation at a conference on the 9th regarding Parkinson's disease.

Buy-write Oct $25 call, currently $22.90-$1.30, stop $20.55
Gain if called $3.40



New Aggressive Recommendations


None


New Long Term Recommendations


None


Existing Play Recommendations


Links to original play recommendation

CLVS - Clovis Oncology (Aggressive Covered Call)

CLVS - Clovis Oncology (Update Existing Position)

FB - Facebook (Long Term Short Put)

PRAN - Prana Biotech (Short Put - Update)

SCTY - SolarCity (Aggressive Short Put)

GILD - Gilead Sciences (Short Put)

SCTY - Solar City (Short Put)

GWPH - GW Pharma (Short Put)

YY - YY Inc (Short Put)

SRPT - Sarepta Therapeutics (Covered Call)

ISIS - ISIS Pharma (Covered Call)

INSY - Insys Therapeutics (Short Put)

AVGO - Avago Technologies (Short Put)

GTAT - GT Advanced Technologies (Covered Call)

NLNK - Newlink Genetics (Covered Call)


Margin Requirements:

There are several different formulas for determining margin requirements for naked put writing. These are normally broker specific and some can require larger margin requirements than others.

Here is the most common margin calculation for naked puts.

100% of the option premium + ((20% of the Underlying Market Value) - (OTM Value))

For simplicity of calculation simply use 20% of the underlying stock price and you will always be safe. ($25 stock * 20% = $5 margin)


Prices Quoted in Newsletter

At Option Investor we have a long-standing policy prohibiting the editors and staff from actually trading the individual recommendations in order to conform to SEC rules concerning trades.

The prices quoted in the newsletter are the end of day prices in most cases.

When discussing fills or stops the prices quoted are the bid/ask at the time the entry trigger or exit stop is hit. This is NOT a price that someone on staff actually got using a live order.

For entry/exit points at the market open the prices quoted will be the opening print. The majority of the time the readers are able to get a better fill than the opening print because of market maker bias at the open.

For trades with an opening qualification the prices quoted will be the bid/ask at the time the qualification was met.

All of these rules normally produce worse prices than an active trader would normally get. Because they are standardized there may be some cases where a price quoted was better than an actual fill. If you received a price that was dramatically different than what was quoted please let us know.