[Teddi Knight]

Teddi & Amy, I’ve been watching for this trade also, since the Feb 4 article. With MCD hitting $95 now, the march 6 $97 strike is only pulling in ~57 cents rather than the .90 Teddi was seeking. Since it’s now 9 days later, I put in a 90 cent bid on the March 20 $97.5 strike, currently it’s .around 80 cents w/MCD @ $95.26. Mine are actually covered, not naked calls. With Ex div date Feb 2, hopefully my shares would not get called early (unless MCD really takes off)

[Teddi Knight]

I would love to hear comments from Teddi or others about this trade. How would you have done this?

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[Teddi Knight]

I would appreciate comments from Teddi or others about JNJ trade. How would you have traded this?

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[Teddi Knight]

I would appreciate any comments from Teddi or others about this trade. What would you have done?

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[Teddi Knight]

Today AXP had a big down day with the new about Costco. This is bad news and I expect more weakness in the following day. Support levels are around 77.5 and 72.5, so I sold the following today.

SOLD -1 AXP 100 MAR 15 75 PUT for .55 02/12 at 14:56 p.m

I expect this to go down further so I am staying between the 2 big support. If it reaches $75 I will roll down.

[Teddi Knight]

Trade update:
2/4 12:41pm I bought this back for around 75% profit target.
BOT +1 AXP 100 FEB 15 77.5 PUT for .13

[Teddi Knight]

Can’t speak for Teddi but I and I think some others bought calls today. Suggest you read the article “10 Common Errors To Avoid With The VIX Index Strategy”. I found it helpful.

[Teddi Knight]

I have traded this a few times with some success. However, I use ThinkOrSwim. On your image, I don’t see both K and D lines on the Fast Stochastic. You’ll need both. The K line on the Fast Stochastic does not necessarily need to hit 100 or 0 to indicate over bought/sold. I have my lines drawn at 10 and 90 for example.
Today (2/12) on SPY I entered a Call trade @ 9:33 CT and exited at 10:45 with a .10 gain. See attached image for the signals I saw today.

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[Teddi Knight]

On 2/11 I got out of my put spread for 30% of the max. I re-entered a 95/90 Feb27 put spread for $.40 around mid day today. I will add to the position and sell the Mar 06 93/88 put spread if the stock drops below $98 which it looks close to doing at the moment.

The news of Remicade patent denial upholding is mild concerning. This drug is not just a drop in the bucket. In 2014 Remicade accounted for ~ $6.8bn in sales. JNJ’s total pharma sales were ~$32bn and total company wide revenue was nearly $75bn.

2014 JNJ REVENUE

However, JNJ has a very strong set of core offerings. They also have massive revenue(2014 -$27bn) from medical equipment in addition to good brands like Tylenol, Aveeno, Listerine, etc. They pay a steady dividend as well and also have decent weekly options.

I will be looking at this drop as an opportunity, but will also watch how JNJ behaves at different support levels in the $90 – $96 range.

[Teddi Knight]

I don’t believe you are able to roll in a registered account since the roll will require executing some sort of a spread which requires a higher level of option trading permission. Your registered account won’t have that level due to what Teddi has mentioned – certain option positions/trades are not allowed by law in registered accounts.
Best thing to do is call QT and ask them for clarification.

Ian

[Teddi Knight]

Found it Teddi. Feb.4 investing strategy notes if anyone else is interested

[Teddi Knight]

yea, I was thinking about SDOW also. will toss it out if we can’t break 18K.

Amy

[Teddi Knight]

Remicade used for treatment of Crohn’s disease and other bowel disorders. Per Wikipedia, the 2013 Annual Report, stated that Remicade accounted for 9.4% of JNJ’s total revenues in fiscal 2013.

[Teddi Knight]

Remicade patent claims given final rejection per Bloomberg. Don’t know what Remicade is.

[Teddi Knight]

Teddi, do you see a trade in JNJ? I am not seeing any real support line near here, other than an oversold condition?

[Teddi Knight]

Bloomberg is quite good as well. Just Google “Bloomberg pre-market” and you get some information.

[Teddi Knight]

Good advice on the weeklies. If there are problems with SYY staying with just a couple of weeks out leaves better flexibility in handling a trade that might take a “wrong turn”.
Some stocks you don’t worry as much about. Stocks like Coke, Johnson and Johnson Stock and so going further out is not a big concern. Stocks like SYY though can sometimes be more problematic. I basically look at a stock and think to myself, “would I own it, even if it fell 10% or 15% from here”. If the answer is yes, then I do not mind doing longer than a few weeks. SYY is not one of those stocks and I do not trade it, but if I did, I still would not want shares, so weekly options would be the choice and two weeks probably the most I would want to sell out to.

[Teddi Knight]

I think the tax law is the short side has to be closed before the new short is opened, otherwise there is the possibility of two shorts even for a moment. The tax law is specific in Canada but whether that is the issue I am not sure.

[Teddi Knight]

Interactive brokers is cheaper and a lot of people do not know you can have a margin and now they also have a retirement account as well. Might be worth a call.

[Teddi Knight]

Very good advice from Kevin here. Often a phone call is all that is needed. I tend to call after the market closes between 4 and 5. Thanks Kevin for posting your answer

[Teddi Knight]

Ian, I forgot to mention in my original post that my account is a RSP. I tried doing what you and Kevin advised me to do but it still wouldn’t allow it. Could it be that you are not allowed to roll options in an RSP???????

[Teddi Knight]

Hi Richard23;
The two strategies are quite different in their goals. I wrote this article which describes what the Shark Strategy is, how it works, why I designed it and how it differs from the Weekly Wanderer Strategy. I hope this helps your decision-making. https://www.fullyinformed.com/investor-questions-ultra-etfs-and-the-shark-option-trading-strategy/
My Best
Teddi

[Teddi Knight]

There is no problem with rolling options with QT IQ Edge Platform.
Right click on the position that you’d like rolled; Select “Create Order”; Change from OPT (Option) to STG (Strategy); enter the strategy that will close your current position and open the new one – it will likely be either a calendar or a diagonal depending on whether one wants to roll out or out and up/down

Hope that helps,
Ian

[Teddi Knight]

I am looking at GG and NEM. I started today with STO GG 3/20 21 put for 54 cents. GG has earnings on 2/19. I will roll forward for a while if ITM by March. NEM’s chart looks better than GG’s and it also has earnings on 2/19. Waiting for more confirmation to open some more positions.

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[Teddi Knight]

The chart shows 74.50 has been excellent for months.

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