Norfolk Southern saw a huge pop on Friday, shares were up 1.91/share or about 3% on a fairly flat day in the markets.
I took this opportunity to close out a put I sold with a March expiration.
I originally sold 1 NSC March 16 '13 $67.50 Put @ 5.17. I saw this put trade over 7.00 when NSC shares were punished the hardest over the last few months. While I didn't sell the put at the highest point , I was still able to make a decent profit by closing out the position.
I bought to close the March 16 '13 $67.50 Put @ 3.74 for a profit of $143 before commission.
I still have a January expiration put that hopefully will expire worthless this month giving me another $210 in premiums.
I do plan on buying more NSC but the main reason I sold was that I think the shares have jumped back up a little too fast and we may see more weakness in the markets. I think I can find another attractive put option to sell on NSC shares.
This was some news I saw posted on E*TRADE Friday:
Norfolk Southern facilitates $2.1 billion in industrial investment in 2012
New plants and expansions announced in 2012 represented an investment of $2.1 billion by Norfolk Southern customers and are expected to create more than 6,100 jobs in the railroad's territory, in future years potentially generating more than 141,000 carloads of new rail traffic annually.
Norfolk Southern assisted state and local government and economic development officials throughout 19 states in helping customers identify ideal locations for new and expanded facilities.
"Our 2012 results were once again anchored by the energy sector," said Newell Baker, assistant vice president industrial development. "Norfolk Southern assisted in the location or expansion of 32 energy-related facilities in 14 states across our service area. Marcellus and Utica Shale gas exploration projects continued to play an important role, along with coal, and power generating equipment. We were excited to see the first shipments of Bakken Crude delivered to east coast refineries in 2012, and we expect this subsector to grow significantly in 2013. In addition, the continued rebound in the metals and automotive markets during 2012 played an important role for us and for our service area."
The balance of other projects secured during 2012 was distributed among several of the broad product areas Norfolk Southern serves.
Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including industrial park planning, site layout, track design, and logistics assistance. During the past 10 years, Norfolk Southern's Industrial Development Department has participated in the location or expansion of 1,021 facilities, representing an investment of $28.7 billion by NS customers and generating more than 48,000 jobs by those NS customers companies in the territory served by the railroad.
Norfolk Southern Corporation is one of the nation's premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.
Connect with NShttp://www.nscorp.com http://www.facebook.com/NorfolkSouthern http://www.flickr.com/photos/norfolksouthern http://www.twitter.com/nscorp http://www.youtube.com/user/norfolksoutherncorp
SOURCE Norfolk Southern Corporation
10:00 AM ET 1/4/13 | PR Newswire
Norfolk Southern Corporation (NYSE:
NSC) participated in the location of 64 new industries and the expansion
of 30 existing industries along its rail lines in 2012.New plants and expansions announced in 2012 represented an investment of $2.1 billion by Norfolk Southern customers and are expected to create more than 6,100 jobs in the railroad's territory, in future years potentially generating more than 141,000 carloads of new rail traffic annually.
Norfolk Southern assisted state and local government and economic development officials throughout 19 states in helping customers identify ideal locations for new and expanded facilities.
"Our 2012 results were once again anchored by the energy sector," said Newell Baker, assistant vice president industrial development. "Norfolk Southern assisted in the location or expansion of 32 energy-related facilities in 14 states across our service area. Marcellus and Utica Shale gas exploration projects continued to play an important role, along with coal, and power generating equipment. We were excited to see the first shipments of Bakken Crude delivered to east coast refineries in 2012, and we expect this subsector to grow significantly in 2013. In addition, the continued rebound in the metals and automotive markets during 2012 played an important role for us and for our service area."
The balance of other projects secured during 2012 was distributed among several of the broad product areas Norfolk Southern serves.
Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including industrial park planning, site layout, track design, and logistics assistance. During the past 10 years, Norfolk Southern's Industrial Development Department has participated in the location or expansion of 1,021 facilities, representing an investment of $28.7 billion by NS customers and generating more than 48,000 jobs by those NS customers companies in the territory served by the railroad.
Norfolk Southern Corporation is one of the nation's premier transportation companies. Its Norfolk Southern Railway subsidiary operates approximately 20,000 route miles in 22 states and the District of Columbia, serves every major container port in the eastern United States, and provides efficient connections to other rail carriers. Norfolk Southern operates the most extensive intermodal network in the East and is a major transporter of coal and industrial products.
Connect with NShttp://www.nscorp.com http://www.facebook.com/NorfolkSouthern http://www.flickr.com/photos/norfolksouthern http://www.twitter.com/nscorp http://www.youtube.com/user/norfolksoutherncorp
SOURCE Norfolk Southern Corporation
I'm going to hopefully start selling puts again later this month when I get my big paycheck on the 15th. A lot of the value that was there a week ago has quickly evaporated. I just hope that I can have as successful of a year in options as you had in 2012.
ReplyDeleteHey PIP. Thanks for stopping by. I look forward to seeing some of your options trades and ideas.
DeleteClosing out of the NSC option was solid IMHO. I think NSC could get above your strike by March, except that we've got another round of debt ceiling related idiocy coming up in a few weeks, which will probably drag on far longer than it should and cause the markets to throw a fit.
ReplyDeletePersonally, I'm trying to decide between buying some NSC now or waiting a couple of months for a shopping run in the bargain bin courtesy of Congress.
Hi FI Journey,
DeleteThanks! You bring up a good point about more debt ceiling debates coming up. I can definitely see the markets being really volatile. This could be good for trading options.
Nobody can predict the markets so I try to make purchases each month. You can always find value somewhere. I still like NSC even at these prices but I am overweight in railroads so don't plan on buying for a while. I also will not be buying as much the first quarter due to a tax bill coming up. I will be selling puts though.
Take care!