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Sweet little trade in my opinion for just about a week of risk. Fat profits indeed. Have a Merry Christmas Amy and thanks for being a member.
TeddiI continue to add to the UDOW and TQQQ ETFs on dips. I am buying just small amounts. This morning I bought 300 more shares of each ETF https://www.fullyinformed.com/members/stock-market-outlook-intraday-chart-analysis-for-afternoon-of-dec-13-2016/
Hi Tom;
My core stocks are unchanged, year after year unless there is a significant change in the company itself. Remember that all sectors are cyclical at one time or other. 2015 was the year of health care. This fall was definitely not the year of health care. Just a couple of months ago investors were writing me worried about Wells Fargo and Morgan Stanley among others. I was loading up on shorted puts and stock. How about VISA just a couple of weeks ago. Another stock I loaded up my portfolio on with shorted puts.Take heart and don’t worry about the rally. Eventually it will end and then we may go sideways, back down or who knows where. Overall the underlying trend of the markets since the day I started in 1972 has been higher with a number of nasty bear markets along the way. Investing with strategies is truly exciting, profitable and fun no matter what the market throws at us.
Denis;
Investors are always nervous when markets are making new highs. They also worry when markets are plunging and they fear there is no bottom to the drop. See my comments on staying focused and enjoy your profits this year. No one can judge with any certainty what 2017 may bring. I just know that strategies always work, no matter what market environment I am in. See my rather longer comments on this topic.
Glad you had such a great 2016.
TeddiMy website is not just strategies to sell puts. Put Selling is a mainstay of my portfolio but my website is full of different strategies that I had used for many years. As well my website has numerous strategies that were outlined years ago and documented for those investors interested in those strategies. For example the Trading For Pennies Strategy and The Trade Ahead Of The Fed are strategies outlined back in 2008 when Ben Bernanke was Fed Chair. The Trade Ahead of Unemployment is another strategy I outlined in 2011 and have used at various times on the website. The Million Dollar Challenge has been ongoing for 4 years and is entering the final year in 2017. The Spy Put Hedge has been a regular contributor to my website since 2008.
Reverse iron condors have been in use since 2009 on my website. Covered calls strategies of all types go back to 2008 on my site as well. The Super Charge Buy-Write Strategy trades go back to 2013. The Extreme Options Selling Strategy goes back to 2012. The Bollinger Bands Strategy Trade goes back to 2009. The Déjà Vu Strategy goes back to 2013. The 10-20-30 strategy and the 10-30-60 strategy go back to 2008 and 2012 which uses both naked puts and naked calls and credit put and credit call spreads. The VIX Index Call Strategy, Put Selling Ladder Strategy, The Shark Strategy, Cry Baby Strategy and dozens more all go back years and years.Remember, you don’t have to trade all the strategies. You need to pick those strategies that work for you and focus on those to build your portfolio. Both of you have done that this year. That is the key to investing.
I have been investing since the start of the 1970’s and have seen big rallies and big declines. Big rallies wipe out volatility and decrease option premiums but the trades are still there. Those who sell premiums always find option values poor in a big rally. Plunges jump volatility and shoot premiums higher but then investors fear the plunge and miss out on the big option premiums.
Instead forget about the rallies and the plunges. They will always be there. Instead focus on the goals of your portfolio and the various strategies that work well depending on the time period. This year the Super Charge Buy-Write Strategy trades and the Trade Ahead of Earnings and Trade Ahead of the Fed have done incredibly well because of the sideways market we had for most of the year. My Spy Put Hedge strategy did not do very well this year when compared to 2008 through to 2011 but that is understandable in a sideways market.
So stay focused and don’t worry about this rally. No one knows where it will end, when it will end or how it will end. That’s why using strategies to build and protect a portfolio works so well. There is a strategy for every market condition.
Teddi
I was exercised out of my shares, but I sold deeper in the money at $82.50. Staying deeper often makes the difference.
Selling options for income is a strategy of small consistent gains that grow over time.
Premiums have actually been quite good especially on weekly options. Picking up half a percent for a week on some naked puts or larger percentage gains on credit spreads (calls or puts) can be boosted by closing early and moving to the next trade, especially thanks to weekly options that makes this now a reality. A good example is Tomorrow’s Trade for Dec 5. These are short-term trades that can generate good returns but should be closed earlier and then a new trade entered to grow the capital quicker than waiting for a trade to expire.Don’t be disheartened. Keep a spreadsheet of your gains and start with a small realistic goal, perhaps 6% for the year. Then when you reach that, moved to 8% then 10%. You will be surprised at the kinds of returns selling options for income can have. Remember that higher premiums means higher risk.
Yes. You can review it here: https://www.fullyinformed.com/covered-calls-super-charge-buy-write-strategy-trade-ideas-for-dec-2-2016/
It comes down to your outlook and goals. My goal is more income so once a position is established, I keep rolling. For MDT I am using the same strategy as I did with BMY. Reducing in the money positions by selling out of the money positions to pay for each closed in the money put.
Yes they were all entered and thanks for spotting the error on the Coca Cola Stock trade. It is a put.
Yes, the idea is to protect the position as cheaply as possible. I will look into an example trade and post it for you.
Mark
The best in this type of instance is I believe to stay with the biggest companies when it comes to oil. For me that has been Exxon (XOM). Nothing wrong with Chevron either. For gasoline Phillips 66 is decent but it is volatile. Exxon Mobil has a much stronger pattern. Personally depending on your outlook, you could probably pick one large oil company like Exxon and stay with them for years. By scaling into positions and out of positions, it is difficult to be hurt even in large pullbacks.
This jump in oil could again be a short-term rally with no substance at the end. No one will know for sure.Hi Denis;
Sorry but your emails were to me and not tech support. I haven’t had a moment today as the techs are installing software. I replied this evening to you.The changes are already underway and the techs are working on installing and testing the software.
TeddiNo problem. Glad to have helped. Happy Thanksgiving Mark.
Perhaps check the spelling of the email or just copy and paste the email address from below. It is techsupport@fullyinformed.com
Thanks very much
Thanks for bringing this to my attention. The link has been fixed. The email techsupport@fullyinformed.com seems to be fine. We have been getting emails today without any problem. Mark, can you try sending an email again. I would appreciate it very much. Thank you.
Here is my latest take on buying VIX Index calls just now. This is the method I am currently using to assist in timing entry. https://www.fullyinformed.com/members/vix-index-cboe-volatility-index-trade-strategy-update-for-nov-23-2016/
Yes, I posted that message today. I think the stock will recover the $75 support level. Just an opinion and not based on the chart technical.