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OK any thoughts on a May 15 STO Put @ $125?
OK – newbie here and been reading as much as I can. We are very familiar with APPL stock so it’s not a bad place to start selling some puts. I understand and have set up basic streaming charts. I have been looking for the criteria to set up the APPL bi-weekly Puts and haven’t found the specifics. My questions:
1. sadaiyer you suggest adding the DMA 20/50/100 to this strategy?
2. I understand the concepts of the support and resistance and have drawn a line on my volume chart for the Support by Volume but I just make an estimate. I haven’t been able to find a tool that will tell me what the “correct” support line should be starting with a one year view then narrowing down to 3 mos.Any help would be appreciated. I just renewed my membership today becasue I know I have finally found where I will be able to learn faster then I have in 20+ years.
Thank you!
I am a new member and this is a trade that I haven’t done yet – only on paper. I believe I know, but having someone with more experience to confirm would be great for me too. Buying Calls, Selling Calls and Puts, I have a good grasp on. But this one, I know as “insurance” or closing an open Put write (sell position). Is there more or a better way of explaining it?
Thanks
I am right with you Tiki – my experience is 100% positive. Finally after all these years – I don’t want to even think about how much more we could have because we always saved first. And thanks for the info on your IRA stocks. Well at least GM was a pick from Schwab yesterday. He suggested:
June 34 STO Put. Don’t recall the return but it’s different today anyway. Plus from my research here, isn’t that a little far out?
Waiting for the call to tell our Account Manager it’s time to make a change.
Thx tiki – will look at SAFM and possibly close TSN since they are facing the same bird flu issues. However, their reputation is not what you are describing. From my research, they seem to be viewed as the “big bad company”…. regardless of whether their chickens have bird flu issues – don’t believe they do.
Trading options is still fairly new to me – so shifting my mindset is a little hard but I am getting there! I really don’t want TSN in the mix.
I am chicken plucking in TSN at the moment. But could close out 200 shares ~ 5.5 % gain and the ARR would be 50%? Owned since March 13.Ex – div sometime in May.
Still learning the rules here so this may not be the place to post.
Just by sheer luck (I am pretty sure), I briefly read the Hide and Seek Strategy and have done that with my FB shares (400 BTW) w/o having to deal with the dividend issue. Here’s where I am at:
STO FB 05/01/2015 89.00 C that I could BTC at any time with ~ $200 gain. 1 Contract
STO FB 09/18/2015 90.00 C – that I could BTC with ~ $100 gain 2 Contracts
STO FB 10/16/2015 100.00 C – that I could BTC with ~ $90 gain 1 Contract
I think if I play Hide and Seek, now that Q2 earnings announced, it may be time to close out at least the May Call and possibly the Sept. for a longer term play. Note: I have not looked at other potential covered call opportunites nor any technicals yet – maybe I shouldn’t be posting, but I am still learning.
Also, because my “crazy” trades in a commission free setup at the moment (quarterly fees apply), I have managed to scrape up $494 in option income in a tax-deferred account since July of last year.
So tomorrow is a talk with our local account manager to see what other programs
potentially could be more beneficial since I am way “out of scope” of the current program we have at Schwab.Fully disclosure with an anonymous Member name and thanks again. Finally, I believe I am starting to get it – I knew it was there but couldn’t put all the pieces together until I came here.
Thanks Teddi – everything I have read on this site has made complex issues straight forward for me after years of trying. I have not looked at the Hide and Seek Strategy, but I will now.
Now I am on Post #2! We bought in FB at an average cost basis of around $45 and still own it – it looks like a year ago but I could be wrong since we changed our brokerage firm. Needless to say, it’s been a good pick with a nice profit. I started placing covered calls, have managed to pick up a few $$ but nothing like I could have if I would have understood the Technical Indicators too.
Now, after being a member here for a few weeks, it really doesn’t fit our investment objectives anymore (dividend payers are probably better) and I am finally learning how to sell stocks! Really understand the don’t be greedy philosophy (not saying I am completely objective yet) but I am working on it.
The dilemma used to be and this is nothing that any investor wouldn’t know but what’s next when you take a gain? Now I am getting ideas like the question I asked about WMT a few minutes ago.
Now I will contradict myself – when I see potential $100 before the year end, and I also, while not a FB user, see the potential. Maybe an idea is to take our $$ invested out and just keep the gains or play with the “house’s” money as my husband would say?
Thank you!