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No way will I be doing that. I will be entering the first trades on Monday Feb 13
Or can it!!! Ha ha ha. If corporate rates are lowered even by 5%, revenue and earnings will push down the average PE. Who knows, maybe Trump’s plan will work at boosting incomes for both business and consumers.
Nice trade at the $103 put strike Amy.Just a continuation of yesterday’s investor nervousness. See this article https://www.fullyinformed.com/members/morning-trade-alerts-and-ideas-feb-10-2017/ I sold more Intel puts and bought stock. This is a great opportunities in my opinion
This article looks at some examples of how I would handle your three trades while focusing on protecting the profit made while working quickly to get the capital back out of the trade, into my portfolio and ready for another trade, all without losing any capital. I also looked at Intel since it dropped on Thursday to show how I would handle that trade on Thursday.
I hope this helps. https://www.fullyinformed.com/investor-questions-handling-non-exercise-of-a-super-charge-buy-write-strategy-trade/
Take Care
TeddiThis is a knee-jerk reaction. At present I am not doing anything. I will be waiting to see how the stock reacts by early next week.
TeddiDone with too small an amount of the call premium, as explained in the trade, the chance of early exercise becomes dependent on the stock movement leading into exercise. If the stock has two weeks to expiry or less and the call premium is a fraction of the dividend payout, the chance of early exercise is far greater.
That said, the dividends I collect on stock that is not exercised are usually large and as such the dividend is more than enough to allow me on the follow day or days to buy back the calls and sell the stock to end the trade and retain the original amount earned. If however you want to try to keep the dividend and the covered call premium, you will most often have to hold your trade to expiry. See this trade from today, Feb 9 https://www.fullyinformed.com/members/update-of-10-trade-ideas-on-tomorrows-watch-list-for-feb-8-2017/
Go to the comments section at the bottom of the page to see how a partial exercise was handled.I’ll have to open up a portfolio for these trades. If the shares are not assigned such as in the case of SUN Stock yesterday, I usually buy back the covered call and then sell the shares that were not exercised. Go to this article https://www.fullyinformed.com/members/update-of-10-trade-ideas-on-tomorrows-watch-list-for-feb-8-2017/ and then scroll down to the comments section at the bottom of the page to reach how I handled the SUN shares that were not exercised.
TeddiThanks for the link to the article. Appreciate it.
Well, yes and no. I based the decision on the dividend yield, the actual dogs of the Dow, the 5 year chart and the ability of the stock to recover from past severe events. As well the problem with Chevron and Exxon is they are both energy conglomerates that should trade pretty well in lockstep. PFIZER and Merck are different companies with separate products lines, research centers and outlooks. So while they are in health care, their approaches are quite different.
Thanks for your question. This is a stock and option portfolio built around dividends and growth. Stocks will be held. I begin investing the capital tomorrow.
I back tested my strategy for the past 3 years and I looking forward to seeing the results.
TeddiI will post some examples of my trades after the market closes today.
Thanks Amy for spotting this trade. I took a look and entered a few trades. Here is my take on what you saw and what the stock is doing along with my trades. https://www.fullyinformed.com/delta-air-lines-stock-dal-trade-alert-after-earnings-doldrums-feb-8-2017/
Profits never hurt anyone, big or small whereas having to continually recover positions can be a real pain.
Watch today as I rolled down some trades https://www.fullyinformed.com/stock-market-outlook-the-week-ahead-second-week-of-feb-2017/
I updated the trades for you with the new ones for today. Still bringing in more put premium. https://www.fullyinformed.com/members/exxon-mobil-stock-xom-trade-after-earnings-for-feb-6-2017/
Thanks Amy. It was from the last trade in XOM stock. The same one you entered on Jan 19. I failed to delete it and you can see there is a trade from Feb 3 shown which of course is over. Thanks for spotting that. It is corrected.
I would just do a screen dump and then either post the full screen or put the image into an editor and cut out what you want to show.
I’ll take a look at this later today.
Just placed new trades today. I will have to wait and see. https://www.fullyinformed.com/afternoon-trade-alerts-and-ideas-for-feb-1-2017/
I have a number of trades still open including the trade ahead of earnings, so I will have to see how the stock movement unfolds before making a decision. I like the stock and have set up credit put spreads and plan to add more positions.