[Teddi Knight]

THANKS, Worked great.

[Teddi Knight]

Thanks Teddi,

We added a 2nd BP to this trade on 2/27.

Currently holding the Monthly March 42.50/37.50 bp + 41/36 bp

Max Credit $85.64

Patrick has been doing much of the work in spreads and I am focusing more on trading.

Take Care

[Teddi Knight]

Thank you for this Toby! I actually just figured this out yesterday with the DUK charts too, but I could not match the setting right.

[Teddi Knight]

Thanks,
Is there no way to post attachments?

[Teddi Knight]

Just FYI: EVERYONE who bought into BABA since the IPSO is now underwater. Problems in Taiwan: https://www.ft.com/intl/cms/s/0/782cb318-c151-11e4-876d-00144feab7de.html#axzz3TKlTFIW7

[Teddi Knight]

Delta Air Lines reports passenger revenue per available seat mile fell 1.5% Y/Y as F/X factored in.
Total capacity was up 6.3% to 17.016B miles during the month.
International revenue passenger miles +1.9% Y/Y.
The carrier’s load factor was flat at 83.0% for domestic routes and -250 bps to 76.2% on international flights.

Down pre-market. Interesting to see if it holds $44.

[Teddi Knight]

I think she has set forth trades on all of the above in her trade ideas the last few days.

[Teddi Knight]

For stocks like XOM that have been punished severely, thus raising their dividends, if you are willing to accept the stock, you will probably do well longer term, compounding the dividend at the lower prices. If you are NOT wanting to be assigned, you really need to watch technical and look at Teddi’s charts, be ready to roll.

[Teddi Knight]

Thanks Mary for your input. Right at the moment, I do not do put selling. I do put credit spreads or call credit spreads depending on whether a stock is overbought/oversold. I was investigating the idea of using an additional strategy like the shark strategy using Ultra ETF’s to grow a smaller portfolio. I am approaching retirement and wanted to see if I could increase my portfolio and then begin to invest in dividend paying companies and do covered calls, put selling etc. So I thot this was the perfect forum to discuss this issue and get input from Teddi and other investors to share their experience. Thanks, Marci

[Teddi Knight]

Actually Mary the size of the account does not really determine the valuation of the stock you want to trade. With a small account, say 50,000.00 you can easily stick with most stocks including stocks like Apple and Visa. Change some of your strategies to credit put spreads on uptrending stocks like the above two. I will have to write an article on this but you do not need to limit your stocks and often the lower priced stocks tend to be juniors. Your list has some good quality stocks in it though but if you really want to grow a small portfolio you need to consider using some margin and some credit put spreads. Darn, I should add that to my 12 tips for growing a small portfolio. Now it will be 14 tips. LOL.

[Teddi Knight]

Hi Marci,

I have faced your issues myself and posed similar questions in the past.

I’m not sure whether you are wanting to ‘trade’ your account or ‘invest’ as I see the two endeavours as quite different. It probably comes down to how much time you have to devote to this account. That is, can you day trade the ultra ETFs on the indices or are you seeking Put selling on stocks or both?

Even though I’m not sure of your focus I will share my thoughts here anyway.

Many of the preferred large cap stocks for Put selling are often too expensive to trade on a small account.

I have focused on some of the cheaper stocks (under/near $50) but they do often carry more risk.

Some stocks that I have found ok for Put selling though include:

AA
AMAT
BAC
COH
CSCO
EBAY
GE
INTC
KO
MSFT
XLF
YHOO

I have also had a good run with MU but it is rather volatile.

UN is on my radar now too as it tries to breakout above $45.

I would appreciate feedback on this list from others in a similar boat and suggestions for other stocks.

Mary

[Teddi Knight]

I have a lot of trades to add in to the portfolio. Only so much Time I am afraid.  You can however select from the category name or go to the stock list in the drop down menu, found in the middle bar.  Select the stocks you are interested in. You will get a list of trades for each stock I am currently trading and you can see the last trade done. I will eventually get them all added to my portfolio.

[Teddi Knight]

For starting out Marci you definitely want to stay away from these types of strategies. The Shark Strategy is more for those with a lot of trading experience and/or large portfolios. They have the capital to trade with and can afford a few mistakes. The strategy paper covers off the first part of your question. Buying IWM Puts is completely different. The shark strategy is designed for up, down and sideways moves. It does not care what direction the ETF is moving in. It is designed for short-term trades in any direction. IWM Puts are basically buying puts when you think the small cap index will pullback. The shark does not care what direction or event is underway. It trades by the technical indicators and what they are advising for the trade.

[Teddi Knight]

A nice trade nonetheless. The stock definitely will pullback here but whether it gets to $73 and stays below there by March 20 is a tough prediction to make. Last downturn took 8 trading days to get that low.

[Teddi Knight]

Thanks Dizzle! It would definitely help in keeping the the stock within your possession. I have shares in JNJ stock that I have had for years and I am still selling the $95 in the money covered calls without any fear of being exercised away.

[Teddi Knight]

Hi Toby
Good idea to be sure. You can post any changes to the forum Technical Indicators Settings Changes and Substitutes. https://www.fullyinformed.com/members/forums/forum/strategy-talk/technical-indicators-settings-changes-and-substitutes/

[Teddi Knight]

Hi Jack. You are quite welcome.

I added an additional 5 contracts on Feb 24th for a net debit of $1.50 so my current average cost is $1.60. I hope to buy another 5 contracts if/when I can get them for $1.30. And then a final 5 for $1.10 if they get down that low.

Tom

[Teddi Knight]

Tom,

On 2/27 I copied your trade and bought a May15 15C/19C debit spread. Cost was $1.50 Thanks very much for posting it.

Jack

[Teddi Knight]

Try using these 3 tools to assist in making a decision for tomorrow. I have used these for years. They have rarely steered me wrong. https://www.fullyinformed.com/members/duke-energy-stock-duk-drop-decision-tools-for-a-roll-down/

[Teddi Knight]

Hi Teddi, I would be interested in what one needs to be aware of when trading the Ultra ETF’s. For instance, what is the advantage/disadvantage to trading TZA as opposed to buying IWM puts. Appreciate the time u have taken to address this issue. Marci

[Teddi Knight]

Looks like Teddi’s Hide & Seek strategy paper is what you need to take a look at then:
https://www.fullyinformed.com/members/hide-and-seek-covered-calls-strategy-to-avoid-exercise-of-long-term-stock-positions/

[Teddi Knight]

Let’s see where Duke heads next. The worry over interest rates rising is definitely impacting the utility sector. I am keeping a close eye and may roll my $77.50 put strikes lower. I want to give the stock a bit of time here first. I am not expecting it will plunge overnight.

[Teddi Knight]

You are most welcome Marci. Set up clearly defined goals. Then figure out the strategies that suit your style of investing or your interest. Then paper trade them to be sure they are consistently profitable. Don’t believe anyone who tells you paper trading is a waste of time. It isn’t if you set up a true paper trading account with companies like Think or Swim or TD Ameritrade I think has a good paper trading platform. You then set up your portfolio and the platform will keep you up to date on your trading experience. It is like real-time but without losses to your actual capital. All my best in your journey.

[Teddi Knight]

Thanks a lot for your comments. I might write another article around them. It is important to understand what you are getting yourself into when trading them. I am glad you found us and I aprpeciate your praise. If you need help remember you can email me or post questions. If the market hits a correction into the spring or summer period of even 8%, your puts will do well. Are you using the shark strategy or using different strategies with your positions?

[Teddi Knight]

More VIX Index calls were added today at better prices and now out into May 20 expiry https://www.fullyinformed.com/members/intraday-chart-analysis-midday-for-mar-2-2015/

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