[Teddi Knight]

I don’t know that I have any firm guidelines, but I have a couple of strategies that I do, depending on how aggressive I want to be.
A) Sell half @ the 33 strike. If/when it approaches the 33 strike, roll those up to the 33.5, then add the remaining half at 33.5.
B) Sell a couple more at 33.5 (i.e. 12 to 15 total contracts). This is more aggressive/risky. This requires a margin account (can’t be done in a retirement account).
C) Sell a ratio spread by buying 10 @ 33 and selling 20 @ 33.5 strikes. You would collect a small premium. I probably wouldn’t do that is this case, because you don’t collect very much premium.
D) As an alternative to C, you could buy fewer than 10 – maybe seven or so. Still sell 20. Is is also somewhat aggressive (but not as aggressive as B). This requires a margin account (can’t be done in a retirement account).

Good luck.

[Teddi Knight]

I see no catalyst to move much higher other that a market melt up, which isn’t so likely, so I would roll ASAP. I immediately rolled out to March 80’s, and got about the same premium. I may need to roll from there as well, but then I don’t want to go too far. I have 20 puts sitting on LL that I rolled too far from 2014 big earnings miss. I am only up 24% due to the time factor, so I need to sit through earnings at least once. ARGH….

[Teddi Knight]

I am playing the call side OTM as I don’t think there is any catalyst going to cause CAT to go up anytime soon.
Don

[Teddi Knight]

This trade was concluded over the lunch hour. I have followed up with a full analysis to outline to investors interested in the Market Direction Portfolio trades, how the trade was handled, how the profits were attained, what the outlook OS not just for the next couple of days but for the next few months and why I believe actively managing these trades could Beat last year’s return of 104%. https://www.fullyinformed.com/members/trade-alert-market-direction-portfolio-speculative-trade-jan-28-2015/

[Teddi Knight]

good idea, as long as it stays above:) Fortunately I STO 20 calls this week at $41, so not sure what I will do with my $38 put expiring tomorrow. With earnings coming up, it’s a crap shoot.

[Teddi Knight]

I can tell you I rolled out to June; got $9.00 for 10 contracts, so hopefully by June I should be ok. I’m sure Teddi had a smarter strategy:)

[Teddi Knight]

earnings after market 2/5 the 36 put fetching 2.23 on 2/6 thinking of selling and getting out on 2/5.

[Teddi Knight]

I’ll tr o take a shot so Teddi doesn’t have to, first you have to be a member to get on forum and then if you post you participate. :-)

[Teddi Knight]

BTC FB 1/30 STRIKE $73 @ .12

[Teddi Knight]

Executed at 1.00 @ 9:41 today. thx!

[Teddi Knight]

I like the FEB 61 for $1

[Teddi Knight]

With disappointing revenue growth, BABA down >6% premarket. Teddi, don’t you have 100 shares with a sold Call (Covered Stock)? If so, how are you managing the trade now? Will you close the entire trade or close the current call and sell another at a different strike?

[Teddi Knight]

Teddi what is the difference between a member and a particpant on the forum? I’ve see one or two ppl who are showing as Member, & most as participant. Thanks

[Teddi Knight]

Very interesting that management change in MCD causes shares to go up, while management change in MAT causes shares to go down! This does look good for my MCD puts.

[Teddi Knight]

Thanks, Amy! You may be right about that. I did get in with a $16 put/ $20/21 call spread jade lizard all the way out to April for $1.31.

If it is between $16 and $20, great. If it’s below $16 I’ll get in at a cost basis of $14.69, and if it shoots past $21, I still make $0.31. Crossing my fingers for this one.

Looking forward to more comments from Teddi/anyone else.

[Teddi Knight]

Excellent attitude and strategy. Having a plan is the key to successful trading, especially long-term investing. By that I do not mean buying and holding for years, but instead, meaning that with a plan you will find trades become more and more profitable. You will find you get a “feel” for a position, a stock or even the market itself. This builds confidence which then builds the portfolio. Emotional investing becomes much less of a problem.

[Teddi Knight]

Surf49 – as long as the trades remain profitable then I see nothing wrong with having to roll. Basically your capital is generating income. Sort of like rent on a condo that at one point perhaps too much was paid for it, but the rent is still flowing in.

[Teddi Knight]

It’s true because I believe the options on the ultra ETFs, especially the 3 times products could really hurt a portfolio with whipsaws and the chance that a stop-loss would work is poor in my opinion. I have always traded the SPY and IWM options. They are liquid enough and there is time to adjust trades.

[Teddi Knight]

An interesting move for the stock. I still like my put positions and believe they will expire out of the money.

[Teddi Knight]

I think you can probably get a fill for perhaps more by putting in an offer for $.95 cents or $1.00 and waiting a bit for a dip.

[Teddi Knight]

Hello, Hinge

I too have more confidence in a trade with the diagonal spread. You make a bit less in the net credit, but the extra week or two makes rescue a bit easier and if the short leg expires, you have an opportunity to make a little more cash by selling another put against the long put you already own or by selling the long put. The approach has worked well for me and makes be more comfortable in my trades.

Good luck in your endeavors. You are in great hands with Teddi.

Tom

[Teddi Knight]

I am more like Buffett in my approach. I like to place my capital into positions where I think they will earn the best amounts. I do not look at the dollar volume but the size of the position. 2500 shares is large for my position in SDOW but was done with the strategy outlined in the trade. 1000 shares of UDOW is fine because it is a 3X fund, but SDOW is a 2X fund so I need more shares to get a somewhat similar dollar amount returned. I don’t take the approach of splitting up evenly among all my positions. Buffett’s approach has always been to place more capital where it can get the best return. Alibaba stock is probably a good example. I am doing 100 shares only in each trade. It’s a small amount but it serves the strategy well. Other trades I can place 15 put contracts in. There is no golden rule in my opinion and no percentage or mathematical formula I follow. I decide which trades looks strongest and place more capital into that trade. SDOW looked solid when I did the intraday chart analysis, so I bought 2500 shares.

[Teddi Knight]

Hi Teddi,

Yesterday I sold $41 puts for Feb 20th, and the stock is already close to $41.00. Since you already rolled your $44, what would you suggest for $41.00 put – roll to which date, and strike?

Thanks

[Teddi Knight]

Hi Teddi,
Back around Jan 09 2015, you did PG 5*87.50 @1.12. Exp. Feb 20th. Please share your repair strategy, unless you are already out of those puts. I am holding $85 puts for Feb 20th, and the stock dropped pretty close to $85.00 today. What would you do, if it was your position? Please help.

[Teddi Knight]

I’m not sure one point is aggressive” when you have days like today. I have been doing that with CBI and a few others, but seriously every day a big manager says we are at the bottom…..who knows? I bet Teddi has some better ideas:)

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