Forum Replies Created
-
Posts
-
I read that the stock was down on U.K.’s probe into the $20 billion Figma Deal. Try googling that. I think this will be temporary and an opportunity.
Below the trade alerts are a list of trades that show the entries and exits. Did you review those trades?
Thanks for your question. The amount and returns are based on a maximum swing, either up or down, of the stock before the expiry date, to either the short put or the short call and using past quarterly returns for that stock over a period of two years of returns. For example, if stock “A” had a $5.00 debit spread and the stock after earnings moved the full $5.00, the return would be 60% (example) when the past 8 quarters (2 years) of returns are taken into the calculation.
Just to mention that I use stops only in periods of expected downturns like the credit crisis bear market, pandemic market collapse in 2020, those types of events. I also use them only in a position I would not want to hold.
This trade had a stop-loss on it that I did not have the chance to adjust before I was sold out of the position. That was fine as I immediately setup another trade which is pretty much the same thing. If I had the chance to roll this position, I would have rolled to the same put strike that I sold for the new trade.
Fear for sure and concern over commercial realty as well. Way overdone in my opinion. Even Canadian banks were lower. I did quite a few trades in the banks today and plan to add to those positions on further weakness if put prices can rise 25% to 50% more than what I received in today’s trades. Morgan Stanley held up well I thought.
I really liked the bank stocks today. Some excellent trades to January 2024!
I am working on some articles that will help in understanding setting up these spreads.
If you want the protection, I go shorter and wait for a bounce higher to buy into April rather than June. After March 17, May will open up as well.
Thanks for the question. My apologies the trade was for March 10 expiry not March 17.
No I haven’t yet. Thanks for your patience. There are a lot of changes coming to the investing tools and that is using up a lot of my spare time.
Yes but by year-end you may find those long puts have made you some extra profit if you plan to hold shares should the stock fall below your short put strike closer to expiry.
Perhaps QCOM but today I did 1 META. The problem with UNP is option volume. MRNA I think is a bit too volatile and can fall and rally quickly. Mind you you probably make a lot by constantly selling the long puts out each time the stock falls and then wait for a rally to buy the puts back again. I would only do this if I we willing to own shares of MRNA.
https://www.fullyinformed.com/members/meta-stock-meta-4th-trade-alert-and-idea-for-thu-feb-2-2023/PayPal or American Express Company Stock (AXP) might be worth a look.
That’s just to start off the trade. I place it as soon as the put is sold. I then adjust it lower as the trade unfolds and works its way toward expiry. Sometimes I get lucky and the trade ends the same day as the order was filled or the next day if the stock suddenly were to spike. Then my capital is freed up for another trade!
Make your trades smaller to control losses but honestly, paper trading builds confidence to stay longer in a trade and watch the signals.
Not yet but perhaps Wells Fargo Stock (WFC). See the Watch list for today Thu Jan 26 2023.
I do not place the two sides at the same time. You can tell from the trades that I buy long calls when I sell put options and vice cersa. I find I can usually get better prices by taking my time as most stocks fluctuate intraday. Today’s market decline allowed for some excellent spreads in the Trade Ahead Of Earnings Strategy setups.
Sure, I will post something for you and take a look this weekend.
I think Disney does look promising but I prefer stocks with dividends which can help in the event the stock falls below the put strike sold and I decide to take shares instead of rolling forward.
Make sure to read the whole article. You are using margin to hold the trade. My brokerage would be around $5050 of margin use for 10 puts in JPM at $100 for Jan 2024 expiry. It will fluctuate depending on the stock movement over the year of course. The lower the stock falls the more margin is required. The higher it moves the less margin is needed.
Read the lower paragraph of the trade under the heading Notes to the strategy.
Here is the link to the trade.I don’t have anything to assist with stocks but I would think once you create the template of what you want to do or follow, you could apply it to any stock you are interested in following. Personally for selling put options I think the Put Options Selling Tool Analysis covers most of the legwork.
I have not back tested for setting up credit call spreads but at 8 to 10 percent I would be interested in seeing if it works.
Can you give me an example of a stock?