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You can compress your image. I had the image size increased to try to assist.
TeddiI had 200 shares called away and was left with 500 shares. I bought and closed my remaining 5 covered calls and sold out of the stock to end the trade. That also means I picked up the dividend of 50 cents. The dividend was more than enough to allow an investor to buy back the covered calls and sell the shares to end the trade profitably.
Another method that works well is to buy back the calls at $77.50 and roll-down the covered calls and further out in time or buy some additional shares and stay within the same period and roll-down but not out.
If you are unconcerned about the stock you can easily just wait to see if it expires and if not, then make a decision what to do next. Managing this type of trade is pretty simple, especially when the dividend is picked up when stock is not exercised out.Hi Amy;
I did not enter the trade on CVX on Friday and I did not enter it today either. I am using my capital for the Exxon Mobil trade instead. In the trade ideas article I wrote “Remember that what I am posting is based on the markets at the close on Wednesday and these will most likely change on Thursday. The put strikes mentioned and the expiry periods are all based on the outlook on Wednesday at the close. They could also change on Thursday including not being entered. Remember these are ideas not trade alerts.”I am watching CVX to see if there is a better entry point shortly. After today’s move, I think the $109 or $108 for Feb 17 looks interesting but the stock may have more room to fall. Earnings were poor. I will be waiting for Exxon’s earnings first which are tomorrow.
Hi Denis; Thanks for your questions. Hopefully this article will answer some of them https://www.fullyinformed.com/members/questions-on-managing-intraday-trading-and-getting-best-option-pricing/
Take care my friend! TeddiI would have to know the stock price, your comfort level, etc. Sometimes using the “Turn that Fron Upside Down Strategy” is a better idea than covered calls. It depends on what it is you are trying to acc0omplish – in other words, your goal. https://www.fullyinformed.com/members/rescue-strategy-unwanted-assigned-shares-turn-that-frown-upside-down/
Any specific question as to the option strikes, please post it if you need help. Thanks.
I have posted over the past several years a variety of trades using credit put spreads with the long put being weeks ahead of the short put. As Tom outlined, there are distinct advantages which vary depending on whether the trades are being placed in bullish or bearish markets. That is beyond the scope of this reply however.
Suffice to stay that often they allow you to basically double dip in a trade. You can sell puts twice without the cost of the long puts being sustained twice.
This has been used in a number of Facebook and Apple Stock trades which I posted. To decide it comes down to what level of protection you want. If you go out further than a few weeks for the long put you will usually have to move lower with the put strike selected if you only want to still pay 5 cents. Depending on your outlook, it may not matter. Tom did a good job of answering this.Hi Bill
I will do my best. Just swamped with trades and writing as much as I can. The trades for Netflix are simple though. The trade ends at one side when if the stock hits the short side of the trade. There is no point in holding whichever side the stock has taken out.
Review this trade write-up for the Nike Stock trade as it explains the reverse iron condor quite well and how the trade is handled after earnings. https://www.fullyinformed.com/members/nike-stock-nke-managing-the-trade-ahead-of-earnings-from-dec-20-2016/I’ll try to get the Netflix trade up but there are a lot of trades to write-up and get into the trade tables as well. Thanks for your patience.
I sold 5 of the BMY $55 puts for Jan 20 on Dec 21 for 45 cents. Back on Jan 5 I closed the trade for 15 cents. With your $52.50 short side you could roll-down or you could consider selling calls against it. I will see if I can write-up something for you after the market closes.
What kind of questions do you have on XLE? The first level of support was around $75. The second level is down at $70.
I like to slowly scale into leap options, normally selling a small number on dips. I did more today in Exxon Mobil Stock https://www.fullyinformed.com/exxon-mobil-stock-xom-trade-alerts-after-ubs-downgrade-for-jan-19-2017/ which are set for Jan 2018 expiry. You can see the strategy behind selling the leap puts. I use these dips in the stock to boost the gain being made on selling just 2 naked puts. If the stock keeps falling I will keep selling more at the same strike price. Often this ends up with a nice profit halfway through the year which I can then close in the final six months if the stock recovers. It is a strategy I have used often over the past several decades. I thought this would ad to your search for more info on using leap options.
There are a number of articles dealing with leap put option strategies on my site. However I almost always combine them with other strategies as I use leap options for a variety of reasons. My Coca Cola Stock trades are a good example where every November and/or December I sell leap put options for another year out. You can find those by searching for the term “Coca cola Stock” on my site.
Why not… have a drink, get that little traveller pillow and trade away. I love my phone for this type of “fun”, even on the beach! Enjoy your holiday.
TeddiYou are more than welcome.
Thanks for your post. Yes, I am rarely a buyer of call options unless I am looking for just a short 2mall profit. I tend to sell out quickly when I have bought options as they decay quickly, especially when the trade goes against me. I prefer selling option premium instead as it works in my favor as the option expiry period looms ahead.
Thanks for posting your position.
TeddiA really great trade on a stellar performer in my opinion. Enjoy your vacation Amy
TeddiMaybe not today but perhaps over the next couple of days. If not, you can always move to Feb 3 expiry. If you move the Feb 3 I would move down to $60.50. Just an opinion.
TeddiSold the $60.50 put strike for 94 cents this afternoon. https://www.fullyinformed.com/members/update-of-tomorrows-trade-portfolio-ideas-for-jan-11-2017/
Teddi