[Teddi Knight]

STO PKG STRIKE JULY 65’S @ .75

AMY

[Teddi Knight]

Thanks Teddi, Sold small 65P @0.75

[Teddi Knight]

Thanks Teddi appreciate your quick reply. I see that you are already in the green so congrats. I will hold on to my order today and see if I can get a fill tomorrow for July 65 @0.8

[Teddi Knight]

Denis
Thanks for sharing your strategy. Do you sell the puts for 525 strike 7 to 10 days out ?

[Teddi Knight]

Teddi,
what price did you sell the puts at ? I have open orders to sell the July 65 @0.8 but no takers yet :(

[Teddi Knight]

Update – Momentum rose along with the price and I left this alone. Closed the short puts 6/19 for a penny (no fee @ TDA) to ensure no surprise late in the day. Netted $80 for $720 of risk for about 11% for one month.

[Teddi Knight]

Yes, that is correct.

[Teddi Knight]

Nice tactical call JB! Do you have a specific timing discipline on when to roll puts that move down to just at or below the money? Do you wait until the week of expiration, 2 days before, day of…etc? Or do you have a specific “line in the sand” price tgt for the underlying violating the strike to execute the roll?

[Teddi Knight]

Closed my roll to July $65’s for a nice profit, so I will end up with the same profit as if I had stayed in the $67.5 strike, which obviously would have been fine!
Amy

[Teddi Knight]

AHA, I had only used SPXU. Gutsy to go SPXS for sure!

[Teddi Knight]

Denis,
Do you mean SPXU? I can’t find SPSX symbol?

Amy

[Teddi Knight]

That’s a good idea. I have 6 hours to decide:) If I buy shares, I am still paying the same as if I took the loss to make them covered calls; if the shares are called, I will be stuck losing the same amount of money, no?

Amy

[Teddi Knight]

Teddi, I also got into this trade on Wed (6/17) in 2 batches with an average cost of $45.67/sh. Working out well so far, thank you. I didn’t sell any covered calls though, as I was hoping to trade this using BB strategy and not sell until it at least hit the upper band around $47. I was reviewing some of you prior articles about BB strategy (like this one: https://www.fullyinformed.com/members/the-bollinger-bands-strategy-for-big-profits/) to determine whether to continue to hold it and see if it continues to ride up the upper Bollinger Band if it starts to widen.
In this MSFT trade you detail the potential repair plans, but do you have an exit strategy target for if MSFT does continue to climb as you’d anticipated?
Thanks, Tina

[Teddi Knight]

Wow thanks you Teddi

[Teddi Knight]

Thanks Teddi. SDOW = 18.08 currently. I’m tempted to open my position here.

[Teddi Knight]

Hi Teddi, Did you get stopped out on SDOW this morning when it dropped below 18.26 or did you pull your stop?

Jack Follick

[Teddi Knight]

I am on the other side of the trade. I bought XLU at $44.41 and sold the June 19 $45 call for $.40. That will expire Friday.

However the July 17 $45 calls are selling for $.08 and the $44 calls are selling for $.18. I am expecting a $.35 dividend at the end of this month. Taking the dividend out of it, is there a way that I can earn 1% for the next month on this trade without selling a lower strike thus losing money?

[Teddi Knight]

Throwing in the towel on XBI. I don’t want to roll out a full month; that’s how I got into this in the first place, going in too early. Might try later in the month. sigh…

Amy

[Teddi Knight]

Gotcha….actually I did the math wrong….my SDOW position is .01% of my portfolio. Sort of an Excedrin nighttime:)

I get the idea that a buy and hold isn’t wise. Like I said, I would have sold yesterday AM, but wasn’t available. I’m sure there will be another shot. Hope we rally into expiration!

Amy

[Teddi Knight]

Actually that was VERY clear, and exactly what I was looking for. Actually I would have sold yesterday AM, but Monday AM is my charity day, and I was not available. But yes, I do plan to add if necessary, and my total investment in an otherwise long portfolio, other than sold calls on XBI and PNRA is 1% of my portfolio, so it “seems” reasonable to me to have some SDOW over the summer.
Obviously it is more a psychological benefit than anything else; were the market to really go south, that 1% won’t do much to protect the rest!

Amy

[Teddi Knight]

I agree Teddi, but I entered a position on Friday in the XLU, have strike $42 on SO, and still have CVX, PKG and XBI underwater, thus I need to manage my capital position so I don’t either HAVE to roll Friday afternoon, or be assigned a lot of stocks I don’t want to own.
Amy

[Teddi Knight]

Hi Amy. I tried a long w and OOM call to catch a dividend and was too complacent when the stock pulled back after the div. After all, a stalwart like WMT should be slow moving right and the pros on bubble vision expected improving earnings blah, blah, blah. My current puts, which are now Aug 72.5s after rolls were originally 77.5s as a average down attempt for my long while I was waiting for the rally that never came. Soooooo…I am still working on the averaging down part. Only good news is that the “original sin” (long) was a small bet..

[Teddi Knight]

Took today’s opportunity to take small profits from my $72.5 June puts, and sold July 17 strike $70 @ .55.

Ay

[Teddi Knight]

probably email Teddi’s tech dept. They would know.

Amy

[Teddi Knight]

Teddi, I have a different cost basis than you do on SDOW. Mine is 18.75. Frankly I was planning to hold it through the summer, but would you put stops in? It just feels like something is going to rock the market in a big way, and there might not be time to get a decent price.

Is there a lot of deterioration in SDOW so keeping it isn’t worthwhile?

Amy

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