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Take advantage of the move higher to roll-down more puts and work them out of the money. If you rolled lower when I wrote the original article you will be sitting with very nice profits on the roll-downs and could now close for more profits and roll lower yet again. A stock like Facebook should make repair easier than many other stocks.
I still like this trade.
TeddiAlways welcome Amy
Hi Aby;
Here are two strategies you may want to consider. There are others on my website if you search for “repair” and “rescue”
Here is the link https://www.fullyinformed.com/repairing-deep-in-the-money-naked-puts-in-facebook-stock-fb-investor-questions/
Hope it is of help.
TeddiI’ll combine the ideas into a portfolio outline. That should make following trades as well as strategies as they are applied easier to understand.
An interesting trade but not a stock I would be interested in. Phillips 66 is about the most volatile I want in this field. LOL. Might be able to close this one early.
I’ll take a look for you and see what ideas I can come up with. If you do not want shares you will have to roll-down.
I keep a listing of all the trades. I will get it posted for this year. Returns are very good and glancing at my list and the trades now open, none have either not be exercised early, or exercised at the expiry unless I close them for 5 to 10 cents early to release the capital to reuse it for more trades.
Here you go. Here is my trade from yesterday. https://www.fullyinformed.com/members/profit-from-fear-of-rising-interest-rates-duke-energy-stock-trade-alert-nov-11-2016/
I would place an offer to sell at $70 per my article, if you are interested in possibly being assigned some shares.
Teddi
Duke is on the list of stocks being traded. Utilities will be weak until we see a change in the thinking on interest rates. Fear of rising rates is driving utilities and some telecoms lower as they are more interest rate sensitive that a lot of stocks.
I would consider the $70 valuation for Duke at present.
TeddiI did this for the years from 2009 until 2015 but I had many members telling me they wanted more trade ideas and less on how to manage the trades. Because I only have so much time, this year I have not kept up most of the trade charts. So far this year I have only had a couple of requests like yours. Everyone else seems to want to have more trade articles and less on the portfolio side.
Perhaps we could get more input from other members as to whether it would still be of assistance. You can review past years through the portfolio drop down on the main navigation bar at the top of every page, under the heading My Portfolios.
You can see in the drop down I stopped in 2016.
TeddiI covered off your question in today’s morning trade https://www.fullyinformed.com/members/morning-trade-alerts-and-ideas-nov-7-2016/
ETFs are based on the price of the underlying equities or commodity. They reflect those prices. That’s one good reason why trading in them can work well if you are seeking large volumes to trade as the price is not supposed to fluctuate based on volume, but on the underlying security. That’s the theory although I have some friends who trade ETFs a lot, and they would disagree, especially on large volume trades.
TeddiI get all this information from my discount broker. Have you tried calling them to see what they have available. Often there is a lot more available then customers are aware of. When paying commissions make sure you are getting the full value out of your broker.
Here are some thoughts Amy. Thanks for your question. https://www.fullyinformed.com/spy-etf-put-trade-guidelines-for-protection-in-a-bull-market-downturn/
For very short-term trades I see no problem trading them in the US but currency swings over a longer period can wipe out gains or add to losses. As well often the option spreads are too wide on New York to make trading a Canadian based stock worthwhile.
If on the other hand you actually want to own a Canadian stock and keep the trade in a long-term portfolio then I see nothing wrong with trading options in New York but you have to take into account currency swings once you go longer than a few weeks, in my opinion.
Moving ahead now as you can see from the website changes. Software should be introduced shortly as the members site changes to accommodate the software.
I will try my best. The problem is I never know what the trade parameters will be so I cannot pinpoint strikes until I see how the stock is performing.
It was overvalued above $70 and is coming down to match revenue and earnings expectations. Investors are worried the DIY market is declining.
Home Depot (HD) has declined from $139 to $122 today and they report Nov 15. Investors are definitely nervous and believe sales will show a significant decline.
Again both stocks were trading at high multiples which is unusual for both stocks.
It was changed to Nov 11 and then Nov 16. I am not sure why but their website says tentatively for Nov 16.
I use Interactive Brokers for my option trades. http://www.interactivebrokers.ca However I never enter my trade as one trade. I always pick the sides separately and watch for stock movement. Stock moves up, I sell the calls and buy the puts. Stock move down I sell the puts and buy the calls. Even a movement of 15 to 25 cents can make an impact on these short-term options.
Teddi
You’ll see them starting today Oct 17
I spent the weekend working with tech support on updating the website. I did not post the BMY articles or the GLD articles. The focus for the next couple of days will be completing the website changes for the software can be implemented for members. I will return to these articles after the website is up and running. Thank you for your understanding.