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It will be interesting to see what is going on with STX, if anything. There is always others who are closer to the situation who know but at the same time often it is just rumors that get investors buying or selling. Emotions run deep with investing. Hardly obvious eh Amy.
I was unable to earn the 90 cents goal until today. But obviously something was up so selling naked calls is a poor choice today. Instead I pick up shares and did covered calls. This article explains my trade. https://www.fullyinformed.com/members/trade-alert-enjoying-the-ride-in-mcdonalds-stock-mcd-feb-25-2015/
For your trade you must have entered without earning 90 cents. The 90 cents was important as it gives me flexibility for the stock to move further than my $97 calls Selling the $97 call naked for 90 cents would have placed my break-even at $97.90. Looking at the charts, you can see that at $98 the stock has faced a lot of resistance. Therefore it gives me time to decide whether to buy stock and turn it into covered calls, or whether the $98 won’t be broken and the stock will fall back.
The move up today in MCD Stock obvously told me not to sell naked calls, but covered calls were completely different, especially in the money covered calls. When a stock moves higher like MCD did today, there is usually some kind of news in the works. That means in the money covered calls is often almost a guarantee of the trade working out in my favor.
For your trade, you can turn your naked calls into covered calls, which is the quickest, easiest and usually the most profitable way to turn the naked calls right around. Let me know how you end up.Glad this is working for you now Toby. Take care and thank you for bringing this to my attention. I will get a write-up on the forum under rules, procedures, announcements. Thanks again.
Thanks for posting this. You could select General Trade Talk from the Trade Talk Forum. I don’t follow RL stock but it does look interesting. It is not something I would trade in however. I appreciate your sharing it with forum members.
Hi Toby;
The entire day was spent with tech support working on the forum to determine what was wrong, if anything. How the subscribe works is not the same as the yahoo forum. On this forum there are forums and there are topics. When you subscribe to a forum, you will receive notices when a new topic is added to that forum. You do not receive replies made inside any of the sub-forums since you are not subscribed to the sub-forum.The forums are like a thread of file folders. By subscribing to the top folder, you will not receive updates to any changes made inside the sub-folders. Instead, select the exact topic you want to stay in touch with. For example, the Strategy Talk cannot be subscribed to. Instead you want to select the sub forums you are most interested in. But again the same subscription applies. You are only going to receive notices of new topics when they are added to the sub forum. Then you are given the option to subscribe to that new topic. The subscription service is designed to have members stay in touch with topics they are following rather than all topics, and all forums.
The yahoo forum is basically a string of comments back and forth. There is no hierarchy. The forum has a structure set up around specific topics. I suggest, removing some of your subscriptions and picking those forums such as General Trade Talk for example, and then when you receive a notice of a new topic, review the topic and determine if it is suitable for subscribing to or whether it is best for just a review. Stock trades become stale over time whereas strategy discussions in the Strategy Talk forums do not.
I hope this helps you out. I know it is not what you were seeking, but unfortunately there is no top level to subscribe to, only individual topics. We spent hours on Saturday studying the forum and ran extensive tests. The forum is sending emails out properly. I contacted 75 members plus many more who responded after receiving numerous test messages we posted to the forums. All were received. If you are still not receiving emails, and you have checked your spam folder, then it could be your mail server is not whitelisting the forum emails. You might try setting up a gmail account and the forum emails be whitelisted by adding the email address to your gmail contact folder. Then you can set up forwarding of email from your gmail account to your regular account. If you need a hand with this please email me. I can set up a gmail account for you and set up a forwarding. This concludes all testing on the forum. Everything is operating properly.
Best Regards
Teddi KnightNormally if you are not getting any emails they are being caught by your provider or your spam filter. Who is your provider. if they are AT&T or any of their subsidiaries you will have trouble. If you are using gmail or yahoo, set up fullyinformed.com in your white list or contact list.
I should have posted to you. I am sorry. The chart this morning showed the stock still dropping so I held off and then sold some at $75 and some others at $77.5. The intraday one minute chart showed a lot of weakness so I kept adjusting my position lower. However even your price was very good and you can always sell a couple more at $75 if you want to help augment your return.
Very good explanation. Thanks for posting this. To make your choice, simply compare what you will earn using in the money calls versus cash secured puts for the same risk. Whichever has the better premium or better return is the obvioous choice. However if the only choice because you are in Canada is in RSP, then in the money calls is your only choice. When that is the case consider the various stocks available and go for those with the strongest protection. Then consider the return, but focus on protection of capital first.
Debis
This is pretty straight forward when using covered calls in this manner. Basically you are placing the covered calls at the same level or price point as you would have done your cash secured puts. Not much to debate here at all. It comes down to which ones have more premium. That’s what to use to determine which is the better trade. Quite straight forward for setting up and making a decision.Yes it is a good trade in my opinion. I sold some at $33 for Mar 27 expiry and 5 at $32.50 for .22 cents just to boost the trade a bit and use some of the available margin I have for this trade.
I would not have rolled down but I would have rolled out for more income. Otherwise if you had rolled down I would have added at least one more put to make sure a roll down was profitable, otherwise roll down but further out. I don’t like taking losses when I believe they are unncessary. I think the $42 put strike was fine and would have kept rolling out and not down.
Here are the latest trades for 2015 in the XOP ETF. https://www.fullyinformed.com/members/xop-etf-spdr-sp-oil-gas-exploration-production-etf-trades-for-2015/
The XOP summary is here: https://www.fullyinformed.com/members/xop-etf-etf-trades-for-2014/
So you mean you are doing stock in your RSP and puts outside your RSP in a margin account? Not sure what you are indicating in this post.
I am trying to update all the trades and should have the Apple Stock trades up to date shortly. I have changed the reporting method in the hopes that I can keep trades more current. However by writing up the trade in advance, it gives a “heads-up” signal to members of what I am doing so they can make their own choice and get into trades.
Niced analysis Richard. The Bollinger Bands Strategy Trades have been excellent and the Weekly Wanderer Strategy has also proved valuable throughout the downturn. Thanks again for posting.
Yes, as pere the article earlier this week I have set up the put selling ladder and will move it forward if needed as we approach Feb 20 expiry
While I think there is a good chance for the market to hit 2000 and break it finally, I have waited a long time for it to happen. Meanwhile I am not holding SDOW and still trading the UDOW. I like the SDOW as it is easy to repair the trade going down with 2X short etfs than 3X short ETFs.
Thanks for posting your charts.I love this pullback! I will be trying for more Put Selling on Thursday. I missed my big chance today.
Hi 1579
Yes I saw the stock fall and I sold more naked puts at $42 on Feb 3. I like it and think it will bounce higher.Disney has been wonderful for over two years. I still think it will move higher in 2015.
My opinion on ETFs is, I prefer stocks. I have written quite a few articles about the difference but in short, stocks are easier to chart, rescue and profit from in my opinion. But stocks have to meet my criteria and only a handful out of the thousands, do.
I like the layout of your trade here. Very well thought out. Personally I would love to also hold some cash back and then trade the morning volatility after the news is out on the earnings. After hours YUM is up 1% so selling another round of call options would be interesting at the $79 or $80 call strike. I will be trying that on Thursday near the open. Thanks for posting your detailed outline.
You both have a point with your iron condors. I still think the YUM one has more merit than the Amazon one does but then I do not like Amazon and feel it is highly speculative while the YUM stock I feel has a lot of worth and trades at what I think are appropriate levels. It often comes down to the individual investor and what they consider investing. Thanks again for your postI rolled down to the $85 put strike and added more puts. I also picked up some shares yesterday and then will have to sell them tomorrow unless the stock moves higher. It looks like it plans to pullback again. I will write this one up. I see no rush to roll down though. I just wanted the added premium