[Teddi Knight]

It seems inconsistent that under Strategy Talk you can subscribe to all the sub-forums, but under Trade Talk you cannot. Is there a way to enable subscription to all forums under Trade Talk? Thanks!
Edit – answer is -> Strategy Talk is a forum itself where as Trade Talk is not. So “Subscribe” on the Strategy Talk page only subscribes you to the Strategy Talk forum, not the sub-forums. It would be nice if there were a way to auto-subscribe to forums so that when a new one under Trade Talk is setup, we know about it. Is there a way to be notified of new forums?
Thanks again!

[Teddi Knight]

Hi – I signed up on Tuesday 2/17 with HOTMAIL and have the same problem: NO emails came in beside the first 2 that welcome & confirm the membership. I did all of the steps that Teddi suggested.
And then I joined the Yahoo Group on Wed 2/18 with my yahoo email address and start getting emails on 2/19 to that yahoo email address when Teddi responsed.

Should I change my HOTMAIL to YAHOO or leave it be???

[Teddi Knight]

My 100 TCK shares at $18 will call away on Feb20 $15 call
Sold TCK Mar20 $15 put at $.60.( lower my $18 shares to 3 puts on $15)
My holding
1 Mar20 $15 put
2 May15 $15 put
2 May15 $16 Call at .39 (cover call on TCK shares cost $19)
200 shares cost $19

[Teddi Knight]

To carry this a bit further, I notice there are multiple levels at which you can subscribe – the forum level, the topic level, and some forums have sub-topics.

I assume that subscribing at the highest level (forum) will result in emails on everything being sent to me, but this isn’t the case so far.

Perhaps some discussion of how the email subscription service works would be helpful. I also think checking with the forum techs to see if emails are being sent wouldn’t hurt.

Cheers,
Kevin

[Teddi Knight]

Hey Pablo
I usually don’t enter any option orders before the market opens; when I do, it’s an absolute stink bid. I estimate what I think is a reasonable price, then I add 50% – 100% to it, then adjust as needed. In this case I put in an order to sell the 77.5s at $1.50, watched it in the pre-market, then adjusted. Still didn’t catch the best price, got $1.20.
Cheers,
Kevin

[Teddi Knight]

Teddi – you mentioned in a midday update that you are keeping a tight stop loss on this UDOW trade. Just wondering how tight and if you’re intending to have it stop out before the weekend?
Thanks, Tina

[Teddi Knight]

I entered the following trade today on VIX

BTO May $15 Calls
STO May $19 Calls

Net debit – $1.70

I will continue to look for opportunities to buy more over time.

Tom

[Teddi Knight]

Hi Teddi
Thanks for getting back to me. I wish that were the case, because it would be easy to solve. I use gmail and monitor my spam filter daily, and the emails are not showing up there.
Regards,
Kevin

[Teddi Knight]

This morning I did the following trade in SO:

BTO May 15th $40 Puts
STO Mar 20th $45 Puts

Net credit = $0.35

7% return on capital at risk for 28 days.

I have never traded in SO so I wanted to stay conservative. I think that this is a pretty conservative trade. Since there are no weekly options in SO, I did the long leg out to May expiration. This will give me some alternatives in case the stock falls below $45 at the March expiration. If the stock holds up, I will be able to roll the short leg out into May for additional income.

[Teddi Knight]

Yes, thanks. I fixed it. Hard to do all my trades and not make some mistakes on expiry dates once in a while, but I think you can get the drift of what I am doing. I appreciate your letting me know! Enjoy the weekend. Terrific trades today,

[Teddi Knight]

I see April 2, but no Apr 6 strikes.

[Teddi Knight]

Added another 500 shares of UDOW at 10:02 – $142.61

[Teddi Knight]

Ditto!

[Teddi Knight]

Denis –
Using KRFT as an example:
Let’s say you want to sell the Mar 62.5 put – .70 bid/.80 offer (.75 mark)
This is equivalent to
Buy KRFT @ 63.95/STO Mar 62.5 Call @ 2.10 Bid/2.35 Offer (2.25 mark)
(Prices are moving as I type, so…)

After Mar expiry, the position will be the same. If KRFT < 62.5, you will own KRFT @ 63.95 – 2.25 (or so) for cost of about 61.70 (covered call) or 62.5 (Put strike price) – .75 (option premium) for cost of about 61.75.

If KRFT > 62.5, you will have no position.

Prices are changing as I type, but the current extrinsic for Call is .725, and for put is .75.

Hope this helps.

Randy Randall

[Teddi Knight]

The only problem I ever have selling puts a month away, is that you just don’t know what is going to happen in a week, much less 28 days! I STO JWN puts yesterday at 3:58, so no time to post it, but I like waiting ONE day:)Maybe I am getting too old, but this market is just so high……

[Teddi Knight]

Agree about VALE, but then almost ANYTHING is better than VALE:) Thanks for the info!

[Teddi Knight]

Above trade was for Feb 27 expiration.

[Teddi Knight]

Looking at the Mar 13 75 @ 0.60-.70 or better on any weakness today. Thinking of 3 contracts for a starter, add 2 and out and down if required for rescue.

Comments?

[Teddi Knight]

Here is the outline as to why I closed the Feb 12 trade in UDOW today and then started a new one in UDOW near the close. It’s about slippage and about working toward boosting the return further despite the DOW moving sideways. https://www.fullyinformed.com/members/why-i-took-profits-and-closed-the-latest-market-direction-portfolio-trade/

[Teddi Knight]

Hi tikigod,

TCK’s quarter report is not that bad. its cash flow is around 2 billion dollar.

https://seekingalpha.com/pr/12497166-teck-reports-unaudited-fourth-quarter-results-for-2014

[Teddi Knight]

TCK for sure is a speculative stock. I sold some puts around $23 last year and worked it down to 100 shares received at $18, 200 shares received at $19 and short 2 $15 puts. Now I have
sold Fed20 $15 Call @ .41 cover call on $18 shares
sold 2 May15 $15 Call @ .40 cover call on $19 shares
Rolled 2 jan $15 puts to Feb20 $15 @2.12 credit $52.(BTC 2 feb20 $15 @0.05 yesterday)
My Plan
STO 2 May15 $15 @ 1.20 for lower $18 to $15.6.
Tomorrow if TCK above $15 than my Feb20 $15 Call get called over.I will sell one $15 put to lower further $15.60.

I hope this make sense.

[Teddi Knight]

I’ll have tech support take a look. Thanks for letting me know.

[Teddi Knight]

Utilities rebounded after the release of the Federal Reserve’s minutes yesterday, and traders are looking for more gains in Southern Company.

optionMONSTER’s Heat Seeker system detected heavy buying in the March 47 calls, where more than 15,000 contracts traded for $0.45 to $1.01, and in 3,000 March 46 calls that went for $0.85 to $1.58. Volume was far above the previous open interest in both contracts, indicating that these are new positions.

Our scanners also showed that traders bought about 5,000 March 48 calls mostly for $0.28 and sold an equal number of March 44 puts for $0.30. Volume was above open interest in those strikes as well, so those are bullish combination trades.

Long calls lock in the price where investors can buy a stock, letting them position for a rally at limited cost. Selling puts can offset the cost of those calls, but traders will be obligated to buy shares if they fall to a certain level. (See our Education section)

The bullish option activity in Southern coincided with heavy call buying in other utility-related names cited on our InsideOptions Pro service, including NextEra Energy and NRG Energy. All of those stocks rose after the Fed’s minutes suggested that interest rates would remain low, which would benefit the sector because utilities typically carry heavy debt loads.

SO gained 2.85 percent yesterday to close at $46.84. Shares of the Atlanta-based utility hit an all-time high above $53 in late January but then reversed and accelerated lower after earnings results on Feb. 4. But yesterday the stock bounced sharply off its 200-day moving average just below the $46 level.

Total option volume in Southern reached 37,000 contracts yesterday, more than 9 times its daily average for the last month. Overall calls outnumbered puts by a bullish 5-to-1 ratio.

[Teddi Knight]

Picked up some shares at 46.10 will sell calls on a green day in LT account.

[Teddi Knight]

Can you tell me what you like about TCK?

I saw the divvy which sparked my interest, but then looked at earnings. Its cash generating potential is also declining with decline in earnings. Record coal production of 26.7 million tons really is irrelevant with the price of coal unlikely to rise. Free cash flow is $65 million, which doesn’t even provide cover for its dividend, payments of $518 million. Even if they can cover the divvy, I don’t see room for any rise anytime soon. I get that Tck also produced 25 million ounces of gold, but gold isn’t exactly in a bull market either.

“Teck Resources may announce dividend cuts with their upcoming quarterly reports”, Morgan Stanley says, as the firm thinks it is too early to get bullish on copper equities while it remains unclear if pricing has troughed.

MS estimates TCK’s 2015 free cash flow (excluding C$500M in dividends) at a loss of ~C$500M, suggesting risk to the dividend.

Hope this isn’t too wordy for the forum, but I am curious what someone familiar with the company thinks.

[Author]

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