[Teddi Knight]

Thanks for the help Ed.

Jack Follick

[Teddi Knight]

My INTC Xdiv trades went different than usual. I did 3 seperate trades – 2 $28.50 Buy writes on 2,500 shares each of the Aug 14 – one for $.29 net and one for $.26. The $.26 one did not get exercised (weird) so I still own the stock til the 14th and get the dividend. The other was for 2,000 shares@ $27.50 and was identical to Teddi’s ($.21), and got exercised away.

JFollick, you really didn’t do an xdiv stock option trade as you went out to Sept15 expiration – which gives you a good probability of not getting exercised away. To do Teddi’s Supercharged Xdiv trade, you can only go out a week or possibly two past the dividend date at most. Better luck next time – the good news is that you will get the dividend.

Ed Boot

[Teddi Knight]

btc @ 1.10
STO 152.50 8/28 p @1.07

[Teddi Knight]

STO DIS SEPT. 4 STRIKE $100 @ 1.00

THANKS FOR MAKING US WAIT TEDDI:)

AMY

[Teddi Knight]

I tried this also. I bought 600 shares of INTC at 27.09 and sold 6 11Sept15 27.5C for 1.65. My shares were not called and I will collect the dividend $0.24/share. However when the market opened yesterday which was the ex-div date, the delta on the call options dropped from 0.993 to 0.81 creating about about 0.15 of time value for the options. If I close the position now, it will wipe out at least 2/3 of the value of the dividend. I will need to hold this position for several more weeks, possibly to expiration, for the delta to return close to 1.000. The bid/ask spread on the call options also increased after the ex-div date.

Jack Follick

[Teddi Knight]

My stock got called off and I lost 0.09 per share without getting the dividend. Now I know why you did what you did.
I am in a confusion on when a share gets called off during ex-dividend. It would be good if you can explain this with INTC example. Thanks

[Teddi Knight]

I rolled down and out to Aug21 115/105 and gave up the original premium of 0.50 received. The AAPL Aug21 121 call which I bought yesterday should cover this loss.

[Teddi Knight]

Order filled today 8/5/15
BTO 10 AAPL August 21 121 Call @ 0.77
Thanks Teddi
Mot

[Teddi Knight]

Hi Teddi,
Because option price change a lot and the difference between bid and ask price big, it is hard to set stop loss. I set stop loss for stock about 10%, but i dont know how many percent stop loss is good for option.
Thank you
Mot

[Teddi Knight]

Teddi – I have not been using the stop loss in my exit plan. I do a manual exit when I feel the stock has no scope for recovery. Infact, I keep losing money because of this. What is an ideal stop loss limit to look at percentage wise? I normally tend to roll down if I think the stock will recover if not take the loss. I tend to close the contract when the stock peps up a bit.

[Teddi Knight]

Thanks,Miss Teddi,for reminding me to look at buying & selling calls.
got into AAPL at 121 for 21Aug. @ 70cents

[Teddi Knight]

thanks….good explanation. It’s an inexpensive insurance policy, sort of like SDOW, but I don’t hold SDOW for any length of time.

Amy

[Teddi Knight]

Thanks Jim, I did smile. I have been in this situation before, and worked myself out surprisingly quickly, although XOP may be a different story. OTOH, as I have watched it, there are so many shorts in all these stocks that if and when oil bounces, even back to 50, XOP will be fine. I have a $1.70 premium built it which brings my cost down some.

Amy

[Teddi Knight]

15, didn’t start at 15, but I added along the way:)

[Teddi Knight]

Amy
XOP is a dangerous neighborhood to be walking through these days. In an effort to make you feel a bit better. . . I have an open position in ABX. Yes, I said ABX and you can stop smiling now. I originally opened the position in the mid 40’s (price, not year) and that was three years ago. Through a variety of rescue strategies, I now have a cost basis in the low 20’s. ABX trades below 7 today. I have strict rules that I invest by and a while ago the red flags went up on ABX, so I covered my position with long term puts to stem the loss. Any seasoned investor will tell you that’s just nuts. They will say close the position and move on. But I don’t give up easily and it’s just plain fun to work the position.

From reading your posts you seem to have a good investment knowledge about you. So I guess you just have to decide. Do you cut your loss or work the position to profitability. The problem is, no one knows how long that will take. XOP will not go bankrupt. It will be there as long as you want to work the position. The premiums are high. . . It could be fun.

I “have taken the pledge”. I will never again invest in commodities. There are just too many variables.

As you can see here I’ve offered no advice whatsoever. But I do hope I’ve made you smile. You’re smart, figure this out. XOP has rich premium’s. Cut your losses or make it work.

Keep posting your position.

Jim

[Teddi Knight]

Teddi,

Not sure how many rolls this has been, but I currently have XOP put that I rolled down to $41.5 expiring Friday. I kept up with the move until XOP just fell out of bed the last week.

I looked out at covered calls, and can’t get much in the way of premium, nor can I get much for rolling down either. Not exactly sure what that means, but my immediate issue is whether to take the loss which I hate do, allow assignment and just wait it out, or if there is an additional strategy that you might suggest?

Any suggestions from anyone would be welcome. I don’t mind assignment, since once the OSX stocks begin to move, they will move fast. I took assignment of EOG this weekend @ $81, already sold covered calls a week ago, lol

Why I self flagellate with oil companies is another story altogether:) I keep saying never again!

Amy

[Teddi Knight]

Teddi, I am in the same VIX trade that you are. I have been away all day, but came home to notice that with all the volatility, my position is actually DOWN, not up. Any idea why the VIX isn’t moving? Everyone too complacent?

Amy

[Teddi Knight]

Hi Amy,

Welcome aboard! I wound up @ the Aug 42 strike on roll downs from earlier sins…
If I can hold thru expiration I break even. Not the preferred outcome!
Good luck

[Teddi Knight]

BTC 77 8/7 @.34. .56 gain
STO 74.5 8/28 @.51

[Teddi Knight]

VIX at 11.97:)

Amy

[Teddi Knight]

STO NUE AUG. STRIKE $42 @ .40
Been using that strike for weeks successfully. I have puts expiring today at $42.
It’s above Teddi’s rec. so buyer beware!

Amy

[Teddi Knight]

VIX could head to $12 or below today, just FYI. That’s Teddi’s target. I may go early, just because I usually am early:)

Amy

[Teddi Knight]

yep, totally agree. As long as you stay close to the price, you can stay in the game. The dividend also helps:)

[Teddi Knight]

Amy I’ve got Jul31 $49 put that looks like it will expire. That one too was rolled a few times. Also I’ve got Aug21 $44 put that I sold. That too hopefully will expire. STX has taught me not to panic that all will be ok if I am patient and stick to a plan.

Corey

[Teddi Knight]

All thanks to Teddi’s teaching. I had no idea how to rescue mistakes before I joined here, nor did I have the confidence that rescues would work.

Amy

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