[Teddi Knight]

Donald, I, too, gave up on WMT 2 1/2 points ago. Sometimes I think it’s better to just take a loss and be able to use the money elsewhere than keep rolling and rolling. WMT seems to be in a never ending decline, and while it WILL end, there are other better options out there IMO.

Amy

[Teddi Knight]

Teddi,

I think you mentioned on the yahoo site that you were writing a PKG rescue piece. Is that correct, and can you give us an idea of when that might be available?

Amy

[Teddi Knight]

https://www.marketwatch.com/story/coty-buys-3-businesses-from-pg-for-12-billion-2015-06-16?siteid=yhoof2

PG up a point pre-market. Hoping this is one trade that closes well!

Amy

[Teddi Knight]

Valerie,
How are you doing with this position? Keep in mind GMCR goes X-D on the 26th of this month for about .29 per share.

Jim

[Teddi Knight]

Hi Teddi,

How about updating the summary of your INTC trades for 2015? Last update was March 10, 2015.

I’m currently short four 17Jul15 31P, that I rolled down and out from 2Jul15 31.5P.

Jack Follick

[Teddi Knight]

you are probably going to have to roll and add to the number of your puts to break even or stay above water. If you go out to July, strike $42, you can get .80 or close to it.

Amy

[Teddi Knight]

Teddi,

You mentioned somewhere that JNJ is one of your core holdings. I think it has dividend yield of about 2.7%. If you are subject to a US dividend withholding tax, why do you choose to keep US dividend stocks instead of Canadian Dividend stocks? Is that because of a better growth opportunity and selling options or do you look at a lower net dividend in a different way?

Thanks,
Mike

[Teddi Knight]

Multimega
How do you determine which calls and puts to sell?

Jim

[Teddi Knight]

It’s been my belief that if the position is held until expiration that a covered call and a short put position are in fact equivalent positions. Although, commission costs tend to favor the short put investor.

The strategy that some here are using is a bit different. They are structuring their positions around the assumption that they will be called out early, because of the dividend. If that happens the time holding the position is less for the same expected return. This increases your annualized return dramatically. This then makes the “buy write” position a superior position to the short put.

It’s not my “cup-a-tea” but I can understand the attraction for short term traders.

Jim

[Teddi Knight]

Another viable naked call strategy is to pair that up with a naked put to form a short Strangle. I have used that for 50 earnings plays since March when the implied volatility is really high. You can measure implied volatility using its own ranking, and it is preferred to put up a trade when the the ranking is over 50. Usually a trade is put up the day before earnings announcement, and then most of the time (about 90% of the time) one could take off the trade for a quick profit (0.5% to 1%) after announcement when the volatility collapsed. Out of the 50 trades, there were 5 of them in which the stocks had bigger than expected moves and hence required repairs and mitigations. I had less than a day holding period for the rest of them.

[Teddi Knight]

Teddi,

Would you think it a good idea to roll my original trade of 240 strike for June @ 2.20 into your trade for July, and just double the amount of options to get myself even? I have made up some ground by adding on up days and closing on down days, would would still need it to remain here or lower next week.
Adding isn’t a problem, since I have been doing that a lot in my “swing trading” of XBI

Amy

[Teddi Knight]

Pursuant to Teddi’s idea of June 3, “I plan to sell the $75.50 put strike for June 12 expiry and I am aiming for 40 cents.”

STP PSX STRIKE $75.50 @ .85

Amy

[Teddi Knight]

Hello Teddi and Others,

VIX is below $13.00 today, which I believe was the BTO-C entry point. Is there a mark to use for BTC-C i.e. $ gain, % gain etc.? Since time is working against us how does this factor into when to close the trade?

I am unable to watch the market constantly but I can get a quick look about every 2 hours.

Thanks.

JB in Seattle

[Teddi Knight]

Hi Teddi
First have to say a big thank you for all the hard work you have put in on this website. After many years of trading I am now showing a decent profit!

I read your recent article on super charged divi’s, thought this was particulary handy for me so I looked at the up and coming divi’s on Nasdaq and the Dow. After 4 hours I still had not found one that meets the spec you require to make this work. As I am in the UK I don’t know most of the stock listed so then I had to look at what they did etc etc. Is there any way we could start an up to date list on the forum of possible divi trades, in lets say two to three weeks ahead. That would save an awful lot of time. Or could we start a section in the forum for “divi trades” and we can all contribute.

Just a thought

Best regards
John

[Teddi Knight]

nice one!
Amy

[Teddi Knight]

Hi Amy & Don and Others,

Can’t disagree with your logic. We each have individual points-of-view and experiences. FWIW, in my limited experience, when I roll-out it’s usually an ITM situation and in the end, so far at least, this has resulted in better returns than had the option expired worthless at the first expiration. Obviously, the latter was original plan.

Best
JB in Seattle –sunny Seattle these past few days.

[Teddi Knight]

BUY 100 INTC @ $31.92
STO 1X 17JULY $32 CALL @ $0.92

[Teddi Knight]

Price action looked weak to me on the rally this morning so I rolled to July 65 @ a debit of .10. When it pulls back again I will add another contract. I agree that it may well expire OOM but I am not going to chance it. I have also hung on too long in the past to my detriment! WMT comes to mind!

[Teddi Knight]

I’m also considering making KO a core holding and have been watching the stock drop in the morning (lower lows) and almost recover in the afternoons (lower highs) over several days. I’ve noticed all my Etrade account charts for all stocks are not displaying volume (in the lower indicator “volume by price chart”) for the last two days for all time periods one month and greater. Maybe a webpart issue with this chart.

[Teddi Knight]

maybe so. One of my problems always is waiting until I can’t roll my way into a profit. If the stock goes down another point, then a roll will end up a loser unless I add, which I already did once. Also, want to stay away from earnings which could be right in the July expiration time frame.

Amy

[Teddi Knight]

airlines sell-off overdone

IMO

Charts don’t look good from trend persective. From a contrarian point-of-view I read them as showing it’s time to start ladder building. The economy is bringing back vacations – at least with the folks I associate with. IV adds a little kicker.

[Teddi Knight]

I think it’s too early to roll-down. Still has good chance to expire for $.05 or less.

jbinSeattle

[Teddi Knight]

Is there a Bollinger Band trade shaping up for KO? KO is within its trading range, pulled away from the lower band, MACD is negative though, Slow Stochastic and Fast Stochastic oversold and crossed positive, Momentum rising, Accum/Dist is still negative. Intersting that ETrade showed 13 or 14 M shares in positive volume yesterday, but today, the volume for yesterday is showing as “0”. Not sure why.

[Teddi Knight]

I will roll-down the $67.50 puts but only once the stock breaks that low.

Guess it’s time to roll….argh….

Amy

[Teddi Knight]

well, at least there is a decent dividend; not sure how much we can get for a roll, but lots can happen in 2 weeks.

Amy

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