[Teddi Knight]

If you review all the articles on Alibaba you can see that the covered call strategy was much choice for a variety of reasons. Go the the category and read the first article written which covers the strategy being used.

[Teddi Knight]

In my images you can see that the K% and D% lines are both shown. K is always the solid yellow line and D is the blue dotted line. Personally I prefer the deepest oversold and overbought signals but you are correct that they are not mandatory for the trade to succeed.

[Teddi Knight]

You want to stay with ETFs that follow actual products like gold and such. They are easier to trade the Shark Strategy with. However that said, I have used it successfully with SDOW and UDOW.

[Teddi Knight]

Probably this weekend.

[Teddi Knight]

Rolled my puts down and out
I’m short JNJ 100 puts for Mar 27

Not overjoyed to be short puts in this downtrend, but I’m still collecting rent on my empty building. Hope to get some tenants and see a bottom, but who knows? Last time I checked BandAids and Tylenol are still selling.

Oh NO! The Kiss of Death??
“JNJ Looking Attractive after Recent Downturn” — Seeking Alpha

LOL

[Teddi Knight]

What trading platform do you use? I use Fidelity and it lists detailed option pricing for each strike.

[Teddi Knight]

Your broker or trading platform. Should be able to give you that info.

IB is reporting 0 OI on the calls — so maybe the big gap for the long side is because nobody is interested in the calls.

[Teddi Knight]

No. Per my articles last week I felt the VIX Index still has further to fall as the market moves higher. No need to ever rush a trade and I think we will see better call prices for buying this week (Feb 17th) and even next. (final week of Feb) Scale into them slowly in small groups. That would be my advice.

[Teddi Knight]

I think you are a bit early but if you are just doing a small number you are probably okay but I still think the indexes are moving higher and prices will be better this week for the VIX Index call buying. Take your time and go for small fills.

[Teddi Knight]

Often gaps are filled, but more often in indexes than in individual stocks. If I see a large gap (not small) usually I wait for the fill and sell puts at that point. Is this opinion what you are looking for?

[Teddi Knight]

Depends on whether you hope to own shares. If the goal is not to own shares then staying out of the money is best. $60 put strike but still I would wait for a pullback. There are lots of other trades with other stocks. But with the stock rising I like selling puts against rising stocks. You just want to keep an eye on the technicals for any sign of a pullback.

[Teddi Knight]

SOLD -1 MRK 100 (Weeklys) FEB2 15 59 PUT @.34 on 2/13 at 12:23p.m

I wanted to take assignment of the stock so I sold the ITM put with a few hours remaining for options expiry. I got my cost basis down to $58.66 before commissions and I got assigned.

I chose to sell a put and take assignment since:
1. I like MRK as a strong large cap stock.
2. It has moved inside the lower bollinger band and is levelling
3. I wanted to buy MRK at the price that Dr. T bought. Shame on me for copying her :)

Now that I have 100 shares, I am patiently waiting for this to turn back up. Middle BB is around $60. If it reaches there I will sell it.
If it does not then I will sell CC and try to get out.

Comments/Suggestions are always welcome.

[Teddi Knight]

Closed the above trade
BOT +1 FB 100 FEB 15 70 PUT @.19 on 2/5 15:39p.m

Opened a new trade:
SOLD -1 FB 100 FEB 15 72.5 PUT @.75 on 2/6 15:49 p.m

Closed the above trade:
BOT +1 FB 100 FEB 15 72.5 PUT @.15 on 2/11 10:43 a.m

Opened another trade:
This time I bought the stock and sold a covered call.

BOT +100 FB @75.75 on 2/13 at 10:05 a.m
SOLD -1 FB 100 (Weeklys) MAR1 15 75.5 CALL @2.25 on 2/17 at 11:31 a.m(timed this trade)

My cost basis if not called out will be $73.50. If called out my profit will be $2. All this has to materialize by March 6th. I think it is good risk to reward.

Question for Dr. T:

Would have bought a protective put way out of the money for this trade if you were doing the same trade?

[Teddi Knight]

Folks can comment what they want. I take my cues from the charts. I am out of this trade for a very nice profit.

I have learnt that the more I listen and read these kind of commentaries the more losses I take since they drive my emotions. I think that is one big lesson I learnt over the years. The only commentary that I give any weight to is Dr. T’s.

I think most novice traders, including myself, had made the mistake of listening to talking heads and taking losses. This is all the spin that happens in the cycles of accumulation and distribution.

[Teddi Knight]

LOL…..Good one….now imagine being in grade school and having to spell that!

[Teddi Knight]

I just entered the following trade:

BTO Feb 20th $69.50 Put
STO Feb 20th $74.50 Put

Net credit = $0.53

10.6% return on capital at risk for 4 days.

If need be, I would roll out to the March expirations where I expect premiums would be fairly high with earnings out next week.

[Teddi Knight]

Interesting. I was a chicken plucker last year quite profitably. Thanks for the suggestion!

[Teddi Knight]

You may find this article relevant and of interest:

https://www.mauldineconomics.com/connecting-the-dots/wall-street-double-talk-and-double-opportunity-of-falling-oil-price

It’s a somewhat educated, but free opinion, so you know what it’s worth.

[Teddi Knight]

With KO at about 41.92 just before the close STO 3 x Mar 13 41 puts at 0.36. FWIW this trade offsets the debit on my roll down from 42 resulting in a .09 credit. I was trying for a better premium, expecting a bit of a sell off into the close ahead of the holiday weekend and perhaps a further filling of the gap up from 41.20. Didn’t happen.

Teddi, how do you strategize repairing trades around gap ups and gap downs in the underlying stock price? I know the technical guys always expect gaps to be filled. As usual the key question becomes timing of the when…

[Teddi Knight]

Nice job Amy. I got my.90 fill on the 3/20 $97.5 as covered calls. Agreed, looking at the chart, $95 then $97 look like some resistance at least. Trying to learn from Teddi to juice my returns on core holdings by selling CCs when it seems appropriate.

[Teddi Knight]

Bought BABA March 75 put for .2 today. This is the protective put(catastrophic insurance) in case BABA goes to zero(or something close) by March expiry. I will take a maximum loss of $1250 and can live to trade another day.

[Teddi Knight]

I got filed at .93 for the 3/20 97.5 calls. Not a full load, but I see what Teddi is seeing, and I sure trust her vision more than the markets. A new CEO can only splash so much new paint on a pig.

[Teddi Knight]

I am holding 3 x Feb 20 100 puts on JNJ. The ex dividend date is Feb 20, I think that is what is inflating the premium. My intuition, fwiw, is that the dividend chasers will run up the stock ahead of the ex date. I will try to close or roll out/down Wed or Thus next week. I am kind of backing in to a roll down and adding capital. Sold 3 x Mar 13 95s yesterday at 0.90.

I am in no danger of losing my amateur standing on this one!

[Teddi Knight]

I have some 101 puts for Feb 27 that I’m trying to roll down and out. They still have .70+ TV left so I’m not in a hurry.

Looks to me that the stock has fair support at the 95 level, but after that it’s lights out ’til 85. The stock is still OK long term — just having the short term ups and downs of a drug company fueled by news (Remicade). There’s never any news about Band-Aids or Tylenol & etc., which will plug along giving support to the company. I’m not worried.

[Teddi Knight]

sorry, typo on my prev post, ex-div is Feb 26th not Feb 2

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