[Teddi Knight]

Here is the latest trade in XOM Stock https://www.fullyinformed.com/members/exxon-mobile-stock-xom-piling-on-profits-trade-alert-mar-2-2015/ I like the drop to the Lower Bollinger Band but I may be early for a bounce back. I picked up just 300 shares and then sold puts. Your trade this morning was exceptional. Congratulations on a great trade. I think it will work out well.

[Teddi Knight]

Rolled my DUK mar20 77.5 puts to apr17 75 this morning. Added more capital and sold some mar20 75 puts at 55 cents to stay in the black. DUK continues to drop, at 76.50 as I write this.

Cheers,
Kevin

[Teddi Knight]

The bulls have cleaned up in Coca-Cola, but they keep coming back for more.

optionMONSTER’s Heat Seeker system shows that more than 11,000 April 47 calls were bought for $0.11 to $0.17 on Friday. Volume was almost 6 times the previous open interest in the strike, which indicates that new money was put to work.

Long calls lock in the price where investors can buy a stock, allowing buyers to profit from a rally at limited cost. They can also generate significant leverage if shares move in the right direction, as we’ve recently seen in the soft-drinks giant. (See our Education section)

On Feb. 19, for instance, the name attracted similarly bullish activity in the May 41 and 44 calls that was cited on our InsideOptions Pro service. The 41s had appreciated about 80 percent by the end of last week, and the 44s more than doubled.

KO rose 1.98 percent to $43.30 on Friday and appears to have broken out of a narrowing range from the preceding month. The company’s last earnings report beat expectations.

Total option volume in the name on Friday was triple its daily average for the last month. Overall calls outnumbered puts by 8 to 1, reflecting the session’s bullish sentiment.

[Teddi Knight]

That’s the problem with these types of stocks. Personally I don’t like the idea of adding more capital to this type of trade. I prefer the trade stand on its own. Depending on the account you are holding the stock in, have you considered just splitting up your stock and start selling covered calls on perhaps 70% of them starting at the money and moving higher and further out. I know I have an article on it somewhere on the site. I will take a look if I can find a moment, but I personally would not add more capital. It’s a question of where can your capital do the best work for the overall portfolio.

[Teddi Knight]

Sold XOM Mar13 85 put for 50 cents this morning.

Cheers,
Kevin

[Teddi Knight]

Hi Teddi,
Thanks for your sharing your investment insights. I have learned so much from your site and have started implementing some of the strategies. Marci

[Teddi Knight]

I was introduced to TNA-TZA last year through a paid service, and took double digit losses. Then I found Teddi and now working on recovering them. These ETF’s can swing hard up/down, I am on my 4th roll down/out trying to break even as I followed TZA from $17 down, now holding $11 puts for July. I know better now and would have been knocked out of the market again, if I wasn’t a member on this site.

[Teddi Knight]

Hi Richard, you young shark you. I back tested quite a number of Ultra ETFs over the past three years. Here is an article which discusses some of my findings and results. https://www.fullyinformed.com/investor-questions-choosing-the-right-ultra-etfs-for-biggest-profits-with-the-shark-option-trading-strategy/ I hope this helps you young sharks out.

[Teddi Knight]

It’s a great stock and right now a straight forward trade. It is on my list again for this week.

[Teddi Knight]

I am not really sure on this one. I am planning on selling naked calls shortly as I think the rally will end this week.

[Teddi Knight]

Hi Amy
I am moving this to the other topic. I don’t see March 6 mentioned. I indicated March 20.

[Teddi Knight]

Earnings next quarter should be decent if their forward guidance is correct. Let’s hope so!

[Teddi Knight]

Richard I am glad to hear from you. I sent an email to you wondering what had become of you. I have not have an email from you since Feb 13! I think the Delta trade is a good one. I have as you know, added more positions to my trade. Take care and when you get a chance email me back. I want to know you are well.

[Teddi Knight]

Hi Marci
The questions you asked are among the more common ones I am emailed about. I thought rather than hunt up a couple dozen emails instead I would write this article “12 Tips To Growing Your Portfolio” to answer all your questions at once. https://www.fullyinformed.com/members/12-tips-to-growing-a-small-portfolio-investor-questions/
Overall Marci my strategies today work better than even 10 years ago for the reasons I outlined in the article. If you want to grow your small account, I hope you will consider the 12 tips and possibly use some of them. This is how I started although it was much harder, as explained in my article. Remember, your members allows you to ask questions about your portfolio as you build it. Take care and thanks for being a member. I appreciate your support.

[Teddi Knight]

In many endeavors, the old joke goes that to begin with a small account, one has to start with a large one.

I don’t think anything much has changed from her articles. Stay small with big caps. Don’t risk big, accept small gains. Protect capital. Don’t mistake success for experience. Most real experience comes from studying losses and what not to do.

Did I say protect capital?

Teddi just wrote an article about regaining confidence, which also applies to small accounts:

p.s. Protect capital.

[Teddi Knight]

I have looked at that product as well. I would love to hear how it turned out for u. Marci

[Teddi Knight]

Well, not much changed. My 83.5’s expired so I “rolled” into some new ones for next week.

[Teddi Knight]

You got a good fill. The stock is now under $15, and the premiums are only .36x.38

Nice idea tho; will keep it on my radar!

[Teddi Knight]

Yah, looks nice… did a buy-write on PAA today

BTO PAA @ 49.91
STO PAA Mar 20 CC 50 @ 1.00

returns 8% (annualized) if stock is above 50
if below 50, I keep the PAA stock and DIV on Apr 30 expected to be .675 — so that’s 5.4% (annualized) plus whatever the APR option gets.

[Teddi Knight]

Looks like I am going to get assigned. So Sold cc this morning on an equal amount of long shares that I may be assigned.

STO 3/20 152.5 call for $1.86 net. Stock was around 151 at time of trade.
If called away I am ok, If I keep the extra shares I would rinse and repeat.
David

[Teddi Knight]

Nice window dressing in YUM this AM:)

[Teddi Knight]

Teddi:
“the $44 put strike which for March 6 is trading for .21 cents for half a percent.”

I see .11x.14….id you mean March 13?

[Teddi Knight]

I entered after I saw your post (which I know you do not recommend) and got a fill @ 2:43. After watching spx fail to break above 2107.60 and then dip back to 2103.76, I got out when it got back to break even about 3:17. Many times it seems I would get better results if I just enter the order to close and not watch the chart – but you can’t really do that because of the risk of loss. Using the 2106 level from the morning low helps me understand better the logic for the entry. Also the 5 MA climbing above the 10/20 MA lines should have convinced me to stay in the trade a bit longer. Thanks.

[Teddi Knight]

Looking forward to the write up. Looking at the 1 min chart, it appears you bought when the K moved up and touched the D on the Fast Stochastic @ 2:35, before the price hit the 5 MA line which did not occur until 2:38. Is there any change from the strategy “rule” of waiting til the price hits the 5 MA? Is there something else you are using? Thanks!

[Teddi Knight]

Thanks for the heads up.

Amy

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