[Teddi Knight]

Hi Dizzle,

I have the same problem with IB. I tried calling them, but the person I got was not very knowledgeable about the Studies. I am currently using the the Stochastic Oscillator with the Observation Period = 12, the Period of the slow average = 7 and the period of the fast average = 21.

[Teddi Knight]

On 1/13/15 with NUE at 45.5, STO 3 Feb15 43P for 0.65.
Today (1/29/15) with NUE at 42.97, I rolled to Mar15 42P with a credit of 0.07.
Stock immediately recovered back to 43.6. Oh well…

[Teddi Knight]

I would love to see the summary on XOP as well. I started in Sept with XOP at 73.6 and did four 71/60P credit spreads (max risk of $4400). After many moves, I finally threw in the towel on December 19th with a net loss of $2600. XOP was at 49.9.

Jack Follick

[Teddi Knight]

Hi Amy,

I took assignment of 200 shares of XOM at 92.5 back on Dec 19th. I sold covered 92.5C which I have been rolling down ever since. Currently have two March 20 85C. Hoping they are called away for the dividend on Feb 6. If so I will break even.

Have to make through earnings on 2/2 though. Per Zack’s, Shell missed badly:

“Europe’s largest oil company Royal Dutch Shell plc (RDS.A) reported weaker-than-expected fourth-quarter 2014 earnings due to low crude price realization.
Earnings per ADR (on a current cost of supplies basis), excluding one-time items and gains or losses from inventories, came in at $1.04, widely missing the Zacks Consensus Estimate of $1.34.”

[Teddi Knight]

Donald

Very nicely done.

[Teddi Knight]

Teddi,

Do you have a ladder of 35P, 34P, and 33P on INTC? Please summarize your active positions. Thanks. I’ve got six 20Feb15 35P. Jack Follick

[Teddi Knight]

On 1/27 with MSFT at 43.1, I sold the four Feb20 41.5P for 0.45. I almost rolled today to the March 41P, but glad that I waited since it bounced back. Will need to add some capital to get down to the $40 level.

[Teddi Knight]

Thanks for the reply, Teddi! Gives me a lot of confidence to know you think this strategy is sound. I did initiate a position for the $15 put in Feb and will watch that very closely.

I’m not usually a chartist, but I do note that the 10 and 20 are below the 30 moving average now. Does this mean I could possibly sell a covered call below my cost now, but once I see signs of the 10 and 20 turning up, to buy them back and wait?

[Teddi Knight]

HKBCQueen,

Below is Teddi’s guidance when she posted the trade idea.

Procter and Gamble Stock (PG):
“The stock dipped with much of the market in this downturn. I am aiming to sell the $87.50 naked puts for Feb 20 expiry and aiming for .98 cents or better if possible. The stocks looks like it may dip before moving higher. Earnings are January 27 but I am not worried about the stock falling below my strike.”

She attached a chart showing weak support at 87.5 and stronger support around 84. Often there is more indication of what her strategy will be regarding rolling than there was for this one, but it would not surprise me if she rolls down to 85 or 82.5 eventually. However the default is always to take assignment since she only sells puts on stocks that she would own. Since there hasn’t been a trade alert since after the one on 1/9 where she entered the trade, it’s pretty likely, though by no means certain, that she hasn’t rolled yet. Its not possible for her to give timely updates on all of her positions. Sometimes many months may go by before you find out what she did. When you follow one of her trade ideas, you need to be prepared to manage it on your own. Jack Follick

[Teddi Knight]

I also sold the Feb20 87.5P on Jan 9th. I got $1.05. I was on vacation for a week and could not roll on Tuesday when PG dropped through 87.5, but I was planning on taking assignment anyway. It’s late to roll now unless the stock recovers more. Would need to add capital to roll to Mar or Apr 85P to avoid taking a loss. Could roll to Jul 85P and reduce the number of contracts. Jack Follick

[Teddi Knight]

Hi Teddi, I am watching put premiums, and keeping an eye on the stock price as well. As per you, the best time to roll the put is when stock price reaches strike price. How did you roll your 87.50 puts, as I am unable to find any summary of your trades under current trades, or open positions on this stock.

Thanks

[Teddi Knight]

I have not got them up yet. They are coming!!

[Teddi Knight]

Excellent news Richard. By the way I thought your grandson had emailed me months back but I did not reply and I could never find his email. He can always email me again if he likes. Meanwhile I think Facebook is ideal for trading as it twitter, but also consider the IWM which has big swings at time but is easier to predict the price movements.

[Teddi Knight]

I like your thinking and see nothing wrong with it except be ready to roll down the $16 naked puts if the stock get’s that low. But it will average you lower into the ETF. Oil may be lower for a while so you have to decide how best to handle it. I like your thinking but I would also use the 10-20-30 moving averages strategy and sell calls below your cost basis. Then make sure when you see the signal that the ETF will move back up, buy them back and wait for the ETF to rise and then fall again. Then sell covered calls again.

[Teddi Knight]

Thanks ddar301
I like your outlook. Personally I use the hide and seek covered calls strategy trade for this one, or stay at $34.50 and move out to March rather than Feb. AT&T has been up and down a lot over the years. Personally I would sell the $35.00 calls naked for March expiry and sell the $34.50 for Mar as covered calls. I would sell half as many positions, so that would be 5 naked puts at $35, just to boost the return. If the stock climbs back up to just above $35, then you can buy stock and the $35 naked calls become covered calls, or you can buy back the 5 $35 strike naked calls and roll them higher and further out in time.

[Teddi Knight]

Hi HKBCQUEEN7
If you have no interest in the stock then you should set up a stop position where if the put premium reaches that stop, you immediately close and get out of the trade. By working from the put premium and not the stock price, you are not watching the stock all the time and worried about the stock. Instead work from the put premium itself. Let it dictate when you get out. You decide how much of a loss you are willing to take, set your stop and then monitor the position. If the stock falls lower and hits your stop in the put premium, you buy back and close.

[Teddi Knight]

I could not bring myself to trade this stock. Nothing wrong for those who like this but I think I can do better with Facebook with much more ease and less uncomfortable days. Bout good for you Amy!

[Teddi Knight]

I will bring that trade up to date but in short I added more capital with the roll downs and used bounces to close and then sell again on further pullbacks. I will outline this in an article shortly.

[Teddi Knight]

I cannot believe the media is so tough on McDonalds. They continue to generate big dividends for investors and the stock in this price range is great for Put Selling. I am continuing with the $87.50

[Teddi Knight]

Not sure on Microsoft. I like the $40 level and would own it there.

[Teddi Knight]

Sorry I didn’t get back to you sooner. You did see that I was already holding the SDOW into the open from my trade from yesterday, right?

[Teddi Knight]

I’ll take a look tonight.

[Teddi Knight]

Great looking trade and a terrific valuation point. Very nice fat premium.

[Teddi Knight]

I am not sure it is set up yet as a Bollinger Bands Strategy Trade but for Put Selling there are very good premiums as you have found out. Congrats on a great trade

[Teddi Knight]

I am working on an article for CAT. I will see what the charting looks like. For now I have no concerns with the stock.

[Author]

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