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Hi Amy
Now the $242 calls are up to $1.07 (2:00 PM) which makes the entire trade profitable! Nice up move for the index.
TeddiHi Amy,
This morning the calls in this trade are back up 73% to 66 cents. I cannot tell when way the market will head next but certainly moving higher even another point could push the calls another 20%. I am rather bearish for tomorrow however as we really need the banking sector to be into any rally.
TeddiHi Amy, here is the latest write-up on the latest Fed trade. https://www.fullyinformed.com/update-of-spy-etf-trade-using-the-getting-ahead-of-the-fed-strategy-trade-may-30-2017/ There are still 10 long puts left in my trade that I will probably sell out on Wednesday. The article outlines the reasons why I will probably be selling out on Wed May 31.
TeddiNo problem. I will write it up today for you.
They are busy adding and updating the tool for the new features. We thought this would be a great weekend for it since it is a long weekend. It will be back shortly. Thanks for your patience.
You do not have permission to view this content.Nice trade Denzil. Let’s hoper the stock is moving back up.
Even if the stock does not rally for a while, this is a terrific company and there are a multitude of strategies you can use to augment your income with AT&T while waiting for a rally.
You do not have permission to view this content.It is more your own choice depending on your comfort level. You could roll down if you want or add to the position. My positions are small so I am adding.
You mean the $54 naked puts, correct? Give it a day to see if it bounces. You have lots of time since you are in July.
Glad you enjoyed it. Jack-in-the-box up big today! Kaching Kaching!
Even the $53.50 or $53 look good
Hi Denis;
The reverse iron condor protects the portfolio from losses if the move is small. The strangle trade is based on higher volatility in stocks.Hi John; Try this article to see if this assists in understanding strike price selection as well as whether to use a strangle or reverse iron condor when setting up the trade. I will try to add more details to my posts as well to assist in this regard. https://www.fullyinformed.com/members/how-to-pick-stock-option-strikes-when-using-the-trade-ahead-of-earnings-strategy/
Teddi
It is not a stock I follow but there is certainly a lot of article lately about the company thanks to the ransomeware Trojan. The jump continued on Monday, up another 7.5%. I wonder how they will do once this latest security issue becomes “old news”. They have an interesting chart pattern but for me, Facebook Stock is my speculative trade at present. I can however, see the attraction.
Hi Tom
This article outlines why paper-trading this strategy works. When a trade is placed, paper or actual, we have no way of knowing the outcome of whether it will be exercised. Paper-trading gives us the tools to setup trades for success. I hope this explains it better https://www.fullyinformed.com/members/investor-questions-on-the-super-charge-buy-write-strategy/Teddi
I am updating trades as fast as possible. The NVDA trade is doing well. I will get it updated shortly. I laid out the two choices. It really depended on your comfort level. The reverse iron condor gives more protection and the strangle gives more profit but with higher risk to the capital being used.
Bang on here Tom. I really don’t want the dividend. The goal is not to earn the dividend. The strategy guide covers this clearly. The goal is to earn a profit, get exercised out the same day the trade is placed and literally, use no capital whatsoever. The goal is a free profit and the BX trade was perfect for this one as was my Boeing trade. It is important to study the strategy guide and paper trade before risking capital. Make sure when paper trading that ALL the trade are successful and then risk capital.
TeddiThis article outlines the strategy https://www.fullyinformed.com/members/boosting-returns-with-the-super-charge-buy-write-strategy/ The article link above is in every Super Charge Buy-Write Strategy trade article posted under the heading:
Strategy Links:This article outlines the Super Charge Buy-Write Strategy and is a good starting place to understand this strategy.
This articles discusses techniques for Super Charge Buy-Write Strategy trades that are not exercised or are partly exercised.Make sure it is read to understand the strategy you are entering. My BX trade was simply perfect. Nice fat profit and it cost me zero dollars. I can’t complain about “free money” which is what the strategy focuses on.
Any questions, post them here:
Teddi
The board of directors of Phillips 66 ( PSX) today declared a quarterly dividend of 70 cents per share on Phillips 66 common stock. The dividend is payable on June 1 to shareholders of record as of the close of business on May 18.
I would wait until at least mid to late next week at the earliest. There could though be a run higher in the stock as investors anticipate earning the dividend. Let’s see how the stock acts tomorrow, after dumping today by $1.40 (or more).
Housing is definitely hot and in many Canadian cities houses are being bidded higher by buyers. You can tell when the housing boom is starting to enter its final cycle when buyers are bidding for homes. The difference in Canada though is you can’t walk away from your mortgage, mortgages have to be insured, a correction of up to 15% is normal for average homes after a buying frenzy, but a collapse of Canada’s housing market is, in my opinion, not in cards as present interest rates.
Governments can do what they want to try to control affordability, but until mortgage rates move back toward normal rates, housing prices will stay high. My daughter purchased a home a few months ago and picked up a 1.95% mortgage rate for 5 years. BMO offered me 1.99% if I would have my home appraised and they would loan against it. At that rate there isn’t any point in even going variable. I had them re-appraise my home and am borrowing once again for investing into stocks. This is the third time since 2008 I have used my home to boost my stock returns.
The interest is tax deductible as long as it is used for investing outside a retirement vehicle like RRSP or TFSA.
TeddiSounds incredibly exciting!. Glad to be able to help out. I love all the trades done today. The market looks set to try for another leg up.
A very nice trade! Look to sell the put side after you check out the Put Option Selling Tool.