Buy APC BRKB IWM (sell puts)

Buy APC via selling Nov 80 puts

Buy BRKB via selling Dec 100 puts

Buy IWM via selling Dec 95 puts

I sell puts on Anadarko Petroleum, Berkshire Hathaway and the Russell 2000 ETF. Option expiration frees up a lot of buying power and I put some of it to use. Record highs in the stock market mean less equity exposure than I would like at this point in the option cycle. All of these are what I have termed worm trades, way out of the money, high probability, low profit. The fishing terminology is a catch so small that it isn't even a small fish, it is digging for worms.

Again, the caveat for newer readers excited by my high percentage of wins (12 and 1 for October). Most of my trades are at 80% to 90% probability to begin with. The payoffs are scaled to match. The folks buying the puts that I am selling have a low percentage chance of a profit, but hope their option is a big winner paying off 5-to-1 or better to compensate for the low probablity.

Long AMGN APC BA BRKB FDX GDX IWM KORS LGF NKE XOP XRT

Net long GLD SPY