[Kikib]

Thanks Amy! Well since I have never done stupid things LOL, I really appreciate your posts – at this point, I am in such repair mode but do not want to continue this! The only light on the horizon is that I did let go of many stocks that really don’t meet our goals, with nice gains and socked away some cash in the process for cash secured puts.. The rest is ouch but working on it!

[Kikib]

Hi Jim,
I am probably not using the right words! You are correct – I rolled them down to a lower strike price – does that make sense now? I hope so or I am worried..

[Kikib]

Hi Jim,
Well this isn’t a very nice day for my portfolio but sticking to my plan. I rolled out both calls I had since I had made profit and now feel more comfortable going lower a week out – as you are suggesting. I went with 1 @85.50 and then another @ $84 since as the day went on, I saw the risk lessen for the 84. For now can trade commission free (quarterly advisor fees apply) so I am taking advantage of every trade that makes sense and don’t have to worry about the individual commissions. My plan is to get the portfolio to a point where I won’t be in this repair mode when I get out of the current Portfolio Plan via Schwab. I think my trades have probably been more than the fees and my track record for rescue, hasn’t been too bad. Thanks again for your help and the stop on quote.

Also, if you get a chance I started another post on GMCR about Support levels? Is there really one now? This stock just keeps going down so I don’t think selling any puts makes sense until there is some stability? Your thoughts?

Thanks,
Valerie

[Kikib]

Hi Dave,
Been meaning to respond to this. I agree, call the regular number or get the active trader’s desk. Through the program we have, the Options specialist was proud of getting his “20-year gold watch”. Unfortunately, he proved to me that he is just taking up space a riding it out – I don’t think a further explanation is required. It wasn’t a problem for me, since by this point, I knew enough to not act on any of his recommendations. The good news? He really is the only person that has disappointed me – their customer service is great.

Another alternative, is Options Express. I keep a small account and their help has been phenomenal . Schwab did acquire them but they haven’t fully merged. They are who I typically call when I have a question and I also found their streaming charts much easier to set up.

I am to start a new topic but the post is still about GMCR – just thought it was time to start GMCR Loser Part 2…

Thanks,
Valerie

[Kikib]

Teddi I made a comment on PFE using this technique but now really see the potential – Super Charge Buy-Write concept is fantastic! As long as I can get in and out relatively quickly, then it really makes sense. Looking at KO right now which was another of your picks from this past week. Trying to get the price down before the ex date on 6/11. This may also be a good way to get me out of a stock that I don’t really like anymore TRV. Ex date is 6/8 and isn’t worth keeping – at least when I got into it. It’s just doing the numbers and understood that there will almost always ? be a decline when a stock goes ex, – your strategy makes sense! I looked at all 7 you brought up over the last couple of days and assuming you can get the right entry point, makes sense to me.

[Kikib]

First thanks to both of you – Amy I really appreciate all the info you share. Jim – I ended up picking up the the June $88 call for $1.45. I really liked the stop on quote once I called Schwab and found out how to do it. I also learned a bunch of other risk mgt. strategies I can employ.

Yeah maybe we are a little crazy but I am hooked! As long as (and I’m not) needing the $$ now, then I now am learning the tools to set up my future and insure that I have significantly increased my chances for success – finally.

Now this may sound crazy too but I have become “ostracized” by the broker since I am not playing by their “pie chart” and only trading their A or B rated stocks – they are “robots” but I don’t mean that in a derogatory way, they have to comply with the corporate rules. Ironically, every stock they recommended that I did buy has not done well but I can’t blame them for GMCR -they wanted me to sell it ASAP. I really like Schwab, their web site is great, and their customer service is really good until you become a rebel. The account rep in FL is fantastic and working with me to get out of this.

I am not quite ready to go on my own so plan to keep their Private Client Service for one more quarter but I am being moved to someone else. This way, while I pay a fee, at least I can trade all I want for free. Since I am keeping alot in cash right now and using it to write cash secured puts, I don’t pay enormous fees since they don’t charge a quarterly fee on cash and only a very small amt. on fixed income – which is another issue. They talked me into corporate bonds that I really don’t want but one thing at a time.

So thanks again and so glad I found all of you!!

[Kikib]

Hi Jim,
Somehow I think, “operator error”. I thought I replied to you last night but can’t see the post? Regardless, I followed what you said, it made sense to me, and because brokerage firms have different terminology, placed the trade you suggested for a slightly less premium.

So thank you – added this to my trader’s diary and I have a few more losers where this will work…

Hindsight is nothing but wow could I have gotten out of some very bad stocks without taking major hits… In IRA accounts!

[Kikib]

Well did this one since it’s a stock worth owning but then realized Teddi – I am not in you league! So yes I own 300 shares now but while I can profit from the trade you recommended, I am a newbie and don’t need to be doing these type of trades (IMHO). So I bought back only one of the 33.50 calls, that I entered at $34.09 I believe? This way, no loss but a nice stock and at the moment.

[Kikib]

You have to love it – I made a short term play since this isn’t something I want to own long term but made this trade and then did something stupid (working on that unemotional trade strategy) and watched it go way over the call I wrote and bought it back. Wrote another call and it didn’t get called away last Fri. Now, just hanging tight on my June WK1 $91 C and most likely, at my entry point – 86.50 will just sell the shares it if it doesn’t close above $91 on Fri. Whatever happens, no BTC C before Fri unless BABA takes a dive way south then will determine, thx to my handy Excel Spreadsheet, the best option.

[Kikib]

Since I posted this, I have made some conservative but profitable Put trades. Mostly these are on stocks that I am trying to remove from portfolio for the most part without taking a major loss. One example GMCR – this is what I have done over the last week or so:
STO P 2 contracts @ $87.50 exp 5/29 Bought them back at a $50 profit this morning.
STO P 2 contracts @ $88. exp June. I have decided to let these ride and if exercised, bring down my cost basis enough to get out within the next few mos.

I am doing this all with watching the technicals so this could change.

Also, Selling Puts on stocks I WANT to own – WMT and JNJ

Thanks – it helps me to kind of talk out loud about what I am doing as well :)

[Kikib]

It’s a start – I agree. This morning : STO P 5/29 @ 88.50 .77 Premium. The idea is if called, it will lower my cost basis significantly so I can get out. – it will put me just over $100 but I doubt it will get called. In the meantime, I will write a couple of calls – every little bit helps.

[Kikib]

Last night a read a news brief from Vickers on Insider Trading. Believe there were 2 direct purchases yesterday – don’t quote me but one for 15K shares and the other for 2.5K shares. Stock is up slightly in after hours so I will be watching closely this AM.

[Kikib]

Hi Amy,
Thanks – I have been looking at all the losers that I have today. Looking at different strategies, charts, and this one actually does look a little more promising than the rest. I’m sure this has been said here, but these analysts really do a great job of downgrading after the stock has tanked! So yes that to me may be a good thing. In the meantime, I am writing calls closed in and may consider a LEAPS put?

Thx – glad to be here.
Valerie

[Kikib]

I didn’t make the trade I brought up a few weeks ago but should have. The only issue I have with WMT is they seem to always be getting bad press for something. However, they used to be a client when I worked for a major corporation. They really believe in investing in technology and with the limited exposure I had, their IT systems were good. For me that is a plus but that was about 5 years ago. I am going to looking again – I need to get some quality stocks in my core portfolio as I try to get rid of my bad ones.

[Kikib]

Hi Teddi,
I am quite certain I did, but I can’t find a record of it. I will send you another email now.

Thank you!

[Kikib]

Hi Mike,
Thank you for your suggestions. I was consider buying more shares but I am sure you know how that makes me feel – BUT take out the emotion right? What you say makes sense because the premiums are really good for GMCR.

Just because I felt I had to do something, I closed out a couple of worthless covered calls on Fri. and then wrote a couple of new short term ones for quick $200 until I can figure out the best solution. Not complaining about $200 normally but there’s alot of $200 calls to get this back!

Also this by the way is in my IRA so another reason it hurts to take a loss. Ultimately, I believe GMCR will come around but I am tired of the roller coaster in this one. Also right now (which will be ending soon), all my trades are commission (but not advised quarterly fees) free via Schwab. So until the end of June, I can take advantage of not paying commissions. I am in the process of accumulating $$ in the account and they don’t charge fees on that. However, I am not “playing” by their rules (pie charts, asset allocation , etc.) so let’s just say, I have not been a “model” client.

What I have learned here in a little over a month, is what I have been trying to do (on and off) for over 20 years – my chances of successful investing, is better then it has ever have been. I spend a few hours every day learning more and while I will never be overconfident, I know I can make decisions that I can back up with the Trade Plan I am working on, etc.

Looks like GMCR was down in after hours – only $.05 so that tells me this may be close to the end of the pain but hard to tell until Mon.

Thanks again and yes I am looking to celebrate with you!
Valerie

[Kikib]

Thanks – I contacted Teddi. In the meantime, I did a paper trade for a 95/90 put spread Jun 15. That will give me more education on a spread w/o hurting this mess. If that works out, I could get closer to even but if Cramer is talking $70 – just that he’s saying it is bad enough.

[Kikib]

Ok thx Tiki – that’s my idea at the moment. Sticking with weeklies to pick up some premium on selling calls. I tried to get some filled today but the upbeat in the AM died before I could jump in with at least a few bucks.

[Kikib]

Thanks Richard! I am slowly gaining my confidence but cautious… I am in a major “fight” LOL (I do understand the corporate game) with the service we signed up for at Schwab – left the co. for a reason and came back but now that I am actively checking what’s going on, I am in 100% agreement with Teddi’s 9 myths about investing and several others – just as I have known intuitively for years that it wasn’t right but busy working, etc., etc. We will be making a change from the current program but I do like Schwab’s tools and their client service. Just will pay maybe to the end of the quarter and take it from there. Too much $$ lost over the years with bad advice, excess fees, and it’s not going to happen anymore. At least I will take responsibility if I make a mistake.

Bears repeating, I am so glad I found this site.

[Kikib]

Thanks Richard and Patrick for your TWTR ideas – I too, was just about to be at a good profit point and wanted to sell my TWTR then the plunge. My option trading isn’t as advanced as yours although I do understand the general idea. As Tiki says the premiums are still good (not as good on as they used to be), so I was sticking to short term covered calls. But at this rate, it’s going to take longer then I want to at a minimum break even and get out. So I will have to get more creative. I will be checking your ideas as they would be different today but just a brief review, not much has changed in terms the the potential strike prices – just the dates.

I personally don’t see TWTR recovering quickly from this but that is not from a thorough research and evaluation – just more from my personal historical perspective.

[Kikib]

Pablo,
I also have a Schwab account but an account at Options Express too. I don’t have much $$ there but I really like their tools and the customer support is fantastic. While I am far from having perfected any of the tools, they do have a couple that will allow you to set up many options parameters for screening. I also find their streaming charts to be easier then the ones on Streetsmart edge.

Hope that’s useful.

[Kikib]

Thanks again for the help. I spent yesterday reading many posts here on put selling. My first Put sell on AAPL that I decided to close today, was a gain of .87% in 8 days. I am happy with that result but will be continuing to spend more time learning then jumping in.

[Kikib]

Thanks Dave -no I haven’t read that yet. That might be a really good section to read :) Thanks again.

[Kikib]

Thanks – I’m learning alot here. When I rec’d the alert that AAPL went below the threshold I set up $123.50, I went in msec meltdown:) and then realized all is fine. I feel fine at $123 May Put even if I end up owning it. In the long run, at least for now, AAPL is a stock we know and have done well on.

Just happy that I am learning all the techncial indicators, making at least somewhat educated decisions, and I do have a plan that I will need to tweak a little – due to the m sec meltdown…

[Kikib]

Thank you Dave. I have actually decided to play it safer at 123. I want to be try to be succesful not taking on unecessary risks! If I end up owning the stock (not my goal), it wouldn’t be the worst thing either. The plan as you say is to close it out before expiration. And I will as you say read and re-read.

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