What makes some options premiums worth so much more than others? Let’s say we have two stocks, A and B. Both are trading @ $25/share. We look to sell the same month A-T-M $25 strike and one (stock A) returns 2% and the other (stock B) 4%. WHY? The answer lies predominently in the mysterious world of implied volatility (IV). The volatility of an option reflects the fluctuation in the price of the underlying stock, both up and down. It does NOT predict a trend but rather a range of price change that an equity can have. In this case, stock B has a much higher IV than does A.
Let’s go back to our equation of the factors that determine the value of an option premium:
Intrinsic Value + Time Value = Premium Value
Intrinsic value is the amount of money the strike is below the market value of the equity, nothing more or less. It is not effected by stock volatility or anything other than the value of the underlying security. Therefore, volatiltiy of the stock relates only to time value. See chapter 4 of Cashing in on Covered Calls to review this subject.
Now take a big gulp of high-octane coffee as I give some definitions:
Historical Volatility (Statistical Volatility) : A statistic or statement of fact based on the closing prices over the past year. If a stock has had a trading range between $30 and $40 and has an average price of $35, we can say the historical volatility is $5 in either direction. A stock that moves up or down $5 from its average of $35 is said to have an HV of 14.3% (5/35). It does not predict a future direction.
Implied Volatility: This is the market’s estimate of future volatility and is based on the option’s last traded price. Stated differently, it is the volatiltity that the market as a whole is expecting, that is giving the option premium its current value. If the historical volatility (HV or SV) is @ 14.3% and the current implied volatility is @ 30%, that option is considered overpriced.
Common sense formulas:
As IV increases = Call premium increases
As IV decreases = Call premium decreases
Causes of implied volatility changes:
- changes in stock volatility
- supply and demand
- earnings reports
- rumors
- news
- market psychology and volatility
- world events (Friday’s news regarding Dubai’s debt crisis)
Mathematics of Implied Volatility:
In statistics, we often hear the term standard deviation. This means that a certain event will occur, based on a statistical model, a certain percent of the time. Let’s clarify this with an example:
Blue Collar Investor Corp (BCI) is currently trading @ $60 per share (I wish!). A pricing model like the Black-Scholes, determines that, based on the current market value of the call option ($60 strike, for example), the IV is 25%. This means that the market is anticipating a price change of $15 (25% of $60) up or down (remember it does not identify a trend). The expected range for the year currently is between $45 and $75 (plus or minus 25% of $60). The likelihood of this being accurate is 1 standard deviation or 68% of the time. It will fall outside these limits 32% of the time. Bottom line: When IV percentages are quoted, they are based on the current option value and on 1 standard deviation.
Where to access Historical and Implied Volatility Stats: Use this link:
http://www.ivolatility.com/options.j?ticker=SPX&R=0
You must join first (it’s free). Use the category “basic options”. Then type in the ticker symbol and you will see the historical volatility of the stock and implied volatility of the option. When implied volatility is much higher than the historical volatility, the market is anticipating an event that could move the equity price dramatically in either direction. These are situations I try to avoid (earnings reports being the main one).
How IV Impacts the Different Strikes:
- I-T-M- Have the LEAST TIME VALUE. Smaller % changes- conservative and why I use this strike so often in volatile markets.
- A-T-M- Have the MOST TIME VALUE. Largest DOLLAR changes- more aggressive.
- O-T-M- All time value. Largest PERCENT changes- most aggressive. These are great for uptrending markets.
Covered Call Examples Using IV:
1- Option premiums when stock price declines:
- Buy BCI @ $62 and sell the $65 call @ $1.50 with IV currently @ 25%
- BCI drops to $57 two weeks later
- If IV= 20%; premium may be $.05
- If IV = 25%; premium may be $.10
- If IV = 30%; premium may be $.15
- These figures will impact our B-T-C exit strategies
2- Option premiums when stock price increases:
Same as above but stock price moves up to $67
If IV = 20%; premium may be $2.90
If IV = 25%; premium may be $3.20
If IV = 30%; premium may be $3.60
3- No price change but option premium moves up:
- Buy BCI @ $30 and sell the $30 call @ $1.50
- The next day BCI trades between $25 and $35 but closes @ $30.
- The same option is now trading @ $2.00 due to the increase in IV.
4- Stock price increases but option value decreases:
- Same as above but the stock moves up slowly the next day to $31.
- Fears of an imminent price decline have been calmed.
- Option value has diminished to $1.20 due to the decrease in IV.
The S&P 500 vs. the VIX:
I have spoken about the VIX many times on this site. It is the CBOE Volatility Index known as the investor fear gauge. More specifically, it tracks changing implied volatiltiy of near-term calls and puts on the S&P 500. Look at it as the consensus view of the near-term market. Here is a comparison chart of the two indexes that clearly demonstrates the relationship between them over the last year:
IMPLIED VOLATILITY: The S&P 500 vs. the VIX
We see an inverse relationship between price appreciation of the S&P 500 and IV. As the S&P 500 has risen over the past year, the VIX and IV have dramatically declined. In general, the less volatiltity the market perceives, the better the conditions are for covered call writers.
Conclusion:
It’s really all about education and understanding how the markets work. There are actually newsletters out there that screen stocks for the highest IVs and recommend them for CC writing. Many charge a hefty fee for this service. I am not here to tell you how to spend your money or the best way for YOU to invest it. I do, however, urge you to understand how IV plays a role in our option values and the impact it may have on your returns. Understanding how IV works will help explain why option premiums are priced at a certain level and assist you in determining the best covered call writes for YOU based upon YOUR risk tolerance.
Last Week’s Economic News:
The trend continues: Mixed reports favoring the positive more than the negative. The GDP grew 2.8%, lower than the anticipated 3.5%. Durable goods orders fell unexpectedly in October by 0.6%. On the positive side, sales of new and existing homes rose by 6.2% and 10.1% respectively. Consumer confidence moved higher in November after two months of decline. Consumer spending also rose by 0.7% and the Federal Reserve Board slightly raised their forecast for economic growth. For the week, the S&P 500 was unchanged for a year-to-date return of 24%.
This Week’s Economic Reports:
Tuesday: Construction spending; ISM manufacturing index.
Wednesday: Federal Reserve’s Beige Book
Thursday: Productivity and unit labor costs; ISM’s non-manufacturing index
Friday: Jobless rate; payroll numbers; factory orders.
Video now playing on the homepage:
Multiple Exit Strategies for the Same Contract Period:
My radio interview:
The Business Author’s Show is re-playing an interview with me through December 3rd. For those who haven’t heard it, it can be accessed from the following link:
Wishing you all much success,
Alan
42 responses so far ↓
1 Don B // Nov 29, 2009 at 9:16 am
Hello Alan,
WONDERFUL PAGE. But, right after I grabbed my cup of hi-octane coffee, I noticed that the para on HV dealt in dollars, with the next para on IV dealing in percentages. I could not relate them, and cannot figure out where the percent came from. Thanx for this article.
2 admin // Nov 29, 2009 at 11:44 am
Don,
Thank you for pointing out how this could be confusing. I added a sentence in bold under “Historic Volatility” and then changed the % figure under “Implied Volatility” so the two definitions relate to the same percentages. That should clear things up even without the coffee!
Alan
3 Dave // Nov 29, 2009 at 10:07 pm
Hi Alan,
When you have time, take a look at the chart for STAR. Very strange.
Dave
4 Susan // Nov 30, 2009 at 5:08 am
Alan,
A few weeks ago you wrote an article about “beta”. Implied volatility from this article seems very similar. Am I missing anything?
Thank you.
Susan
5 admin // Nov 30, 2009 at 5:24 am
Dave,
Whenever we see an odd-looking chart like this the first thought that comes to mind is some sort of merger or acquisition situation. Access the company news and see what you find. In this case, you will see that CISCO has agreed to purchase this company for $35/share sometime in 2010. This price will be tied to this agreed upon sales price until (and if) the acquisition is complete and then STAR will cease to exist.
Alan
6 admin // Nov 30, 2009 at 1:05 pm
Susan,
There is a distinct difference between beta and implied volatility. BETA is a measure of a stock’s returns based on the movement of the market in general. For example, an equity with a beta of “2″ will move twice as much as will the S&P 500. So if the market went up 5% in a specific time frame, that stock would be expected to rise by 10%. If the market declined by 2%, the stock would depreciate by 4%. Therefore beta measures a stocks performance based on the market movements. I like high beta stocks in an uptrending stock market.
Implied volatility is what the market is expecting the underlying equity to do based on the current (last trade) value of a specific option premium. It is a prediction based on future events as opposed to beta which is based on past data. It’s significance relates to a specific stock as opposed to the market in general. An option with a high IV, a beta of 1 (matches the market) an a flat stock market is still expected to make a big move (either direction).
Alan
7 Don B // Nov 30, 2009 at 7:10 pm
Alan,
I do not know if I ever read a comment from you on option writing AS GAMBLING!
8 Don B // Nov 30, 2009 at 7:12 pm
PS – Surely this is NOT gambling, but I certainly would like to know how to express it in a manner showing it to be a value in the marketplace. TYVM.
9 admin // Nov 30, 2009 at 8:25 pm
Don,
I certainly do not define CC writing as gambling but rather as a conservative form of investing. Inherant in the term investing is a percentage of risk. A risk-free investment would be a T-bill, usually a product that results in purchasing power or opportuinity risk, but NOT capital risk.
To equate the risk in CC writing to the term ” gambling” would be to ignore all the preparation, education and control we have, not to mention the fact that the “odds” are in our favor for success, which it isn’t in most forms of gambling.
There are two types of investors in the options arena; hedgers and speculators. A hedger is looking to protect a portfolio much like you and me taking out an insurance policy, surely an asset in the marketplace. Not always are there hedgers to take the other side of that trade and that’s where the other group, the speculators, play a role.
I hope my remarks address your above comments.
Alan
10 admin // Dec 1, 2009 at 5:28 am
Overbought?
One of the issues that concern investors is when should an uptrending stock be abandoned for fear it is overbought and due for a correction.
Many of the great performers can remain in the overbought position (above the 80% in the slow stochastic oscillator) for many months. What we look for here is a dip below this marker and then a second dip. Until that happens or there is another breakdown, I say enjoy the ride. Two stocks on our watchlists that have been top-ten performers for the last five months are BCSI and FFIV.
Alan
11 Aaron // Dec 1, 2009 at 8:35 am
Alan,
Thanks for this article.
The last couple days I had been looking around for a decent ‘easy read’ about this same topic.
- Aaron
12 Beth W. // Dec 1, 2009 at 11:30 am
Alan,
You recently mentioned nus as a stock you like but when I looked at the option chain the returns seemed low for this month. Is it best to wait for next month before buying this company?
Thanks.
Beth
13 admin // Dec 1, 2009 at 11:47 am
Beth,
You did select a great performer in the same group as another recent favorite of this site, MED. It recently raised earnings guidance and declared a quarterly dividend. Near a 52-week high the company has tripled the returns of the S&P 500 over the last year.
You will find that low-beta, moderate IV stocks will have poor returns when the price is in the middle of two strike prices and mid-contract. I agree with your assessment. Keep it on your watchlist but this is not a good time to enter this position.
Alan
14 Barry B // Dec 1, 2009 at 1:22 pm
Alan,
Quick update on ‘Exit Strategies’…VPRT. I traded VPRT last month, but it was not called out. As a result of the trade, my cost basis was $52.77. Following your recommendations, I review each position every day. Today I noticed that VPRT was up sharply.
Original Trade:
Stock price (cost basis): $52.77
STO: Dec 55 C f0r $1.33
ROO: 2.5%
Total Return: 4.2%
(Calculations per Ellman Options Calc.)
However, I had the opportunity to exit the trade early with a guaranteed return.
Today’s Trade:
Stock Price: $58.80
Cost to buyback Dec55 Call: $4.60
Net Return: 5.4% for 14 days
This gives me the opportunity to enter another trade with 17 days until expiration.
Barry
15 Barry B // Dec 1, 2009 at 1:47 pm
Update to my last post…
The total return should have read 6.7% with the upside return at 4.2%. The 6.7% assumes that the stock stays above 55.00 through expiration. With a beta of 1.14, that was not a sure thing…so I took the ’sure thing’ 5.4% and ‘ran’.
Barry
Barry
16 shellyW // Dec 2, 2009 at 8:16 am
Hi Alan
Enjoyed meeting you at the last AAII meeting. Have done covered calls for a while and had success with stocks such as Cof, AKS, GRA,SCHN, and even a conservative MAA. However, at this time every one of these and others that I have been watching have a very small return. Any hints where to find some good stocks and have a decent return on cocered calls?
17 admin // Dec 2, 2009 at 8:54 am
Shelly,
My system for selecting the best covered call candidates involves screening for the greatest performing stocks in the greatest performing industries. The entire process is detailed in my first book, “Cashing in on Covered Calls”.
The actual INITIAL option return is the LEAST important factor in this process and one of our last steps. Once we have developed a QUALITY watchlist of these great performers, we put these into the calculator I developed and you then select the candidates with the best returns. I promise you that with a quality watchlist, you will find candidates with returns that you will be very satisfied with.
If you are currently looking at the December calls, bear in mind that we are mid contract and time erosion is eating up premium value.
So step 1 is to develop that quality watchlist which may take several weeks…it will be worth the effort.
Please introduce yourself to me at the next meeting as I met many new people after I spoke at the last meeting.
Alan
18 Eric R. // Dec 2, 2009 at 11:49 am
Barry B. –
Thanks for sharing your exit strategy. I’ve always just held on until the end of the contract period when my stock shoots higher like that, but it’s interesting to hear how others handle the situation. Congrats to you on a nice profit!
Eric
19 admin // Dec 2, 2009 at 12:03 pm
To all,
Re: Barry’s comment # 15:
The BCI Team is working on an Elite version of the calculator that will do these mid-contract calculations for you (what your final returns would be if you unwind your position at any point in time). There will be other new features that I will be updating you with in the near future.
Alan
20 Don B // Dec 2, 2009 at 2:42 pm
Well, I may have just hit a double! ( twice?) But with cash-covered Puts. Agnico-Eagle Mine (AEM) is the subject.
11/2 STO Nov. 50. @ 1.22 net.
11/9 BTC @ .23 c net. Net gain so far $99.
11/9 STO cash-covered Put Dec. 55 @ (net) 2.02.
12/2 BTC @.28c net. New gain 174.24
12/2 STO cash-covered Dec 65 (net 1.38). to expire 12/19. Assuming no assignment, net gain on this portion will be $137.99.
These total 411.23 – not too shabby for 100 shares, yes?
Seems like a double to me, in Puts. ? What I did not mention is that I have used this wonderful stock in this manner since late March of this year. Overall, I have gained a total, counting what I ticked off here, of $1705. And this from a cash cover of about $6000, average. Overall, looks to me like 28.4% since March 27. Eight and a half months – which annualizes out at 40%. I shall accept that!
Don
21 Don B // Dec 2, 2009 at 2:47 pm
Oh yeah, failed to add that I actually rolled my Put position Up, and Out to Dec. as well.
Don
22 Susan // Dec 3, 2009 at 5:16 am
Hi Alan,
I recently read both of your books and started paper trading as you recommend. I spent a few hours locating the stocks and picking the best strike prices (I hope they were the best ones) and now find myself with little to do until they expire. All of my picks are above the strike prices so no exit strategies are needed. Am I missing anything?
Thanks for a great system.
Susan
23 Eric R. // Dec 3, 2009 at 7:21 am
Alan -
I’ve noticed when I’m picking strike prices to sell CC that most stocks that are trading for less than $25 have strikes in increments $2.50 such as a 20, 22.50, 25. While those above $25 have strikes in increments of $5. But why is it a stock like GG (Goldcorp) has strikes in increments of $1? I’ve noticed a few other stocks that have their strikes in $1 increments, but not too many. Most ETF’s also have this. Also, thanks for your article above on IV. You have a knack for making the complex understandable.
Eric
24 admin // Dec 3, 2009 at 9:27 am
Susan,
Most of the due-diligence is accomplished a few days before and after expiration Friday. After taking your initial positions, monitoring them is our responsibility. It may only take a minute or two per day to see if an exit strategy opportunity is presenting itself or if you want to close a position as Barry did in comments 14 and 15. I look at my stock value and option premium values (about 30 seconds per look) each day. In your situation with all prices above the strikes, you are in a great position for a successful return this month. Keep up the good work.
Alan
25 admin // Dec 3, 2009 at 12:13 pm
Eric (comment # 23),
The options exchanges received SEC approval to expand and make permanent the ability to list strike prices in $1.00 increments. Under the recently approved program, each exchange can elect to list dollar strike prices on equity options for up to fifty-five individual securities provided that the strike prices are $50.00 or less, but greater than or equal to $1.00. Additionally, no $1 strike may be listed that is greater than $5 from the underlying stocks closing price in its primary market on the previous day ( a $22 stock cannot list a $29 strike until the price reaches $24). The options exchanges are also restricted from listing any series that would result in strike prices being $0.50 apart. There are currently over 300 stocks with these $1 increments, not counting ETFs. This is called the “1 point strike program”.
Glad you liked my article. Your comments are greatly appreciated.
Alan
26 admin // Dec 3, 2009 at 3:03 pm
Same Store Monthly Retail Sales (many reported today):
Why I have “banned” these stocks from consideration:
COST: – 3% today
M: – 3% today
PLCE: – 12% today
BJ: – 3% today
ARO: – 11% today (+ an ER)
Treat these reports as additional ERs EVERY MONTH!
Alan
27 admin // Dec 4, 2009 at 7:45 am
Screen of the Day:
I love the current screen on the IBD homepage:
” Stocks showing accelerating mutual fund ownership”.
These are the guys who move the market, not you and I. As they take positions in these stocks, prices go up, improving our odds for successful investments. Three of the better performers on the screen are HSP, TDC and RHT.
The next step would be to do a technical analysis of these equities to see if any/all belong on our watchlists or even in our portfolios.
Alan
28 Dave // Dec 4, 2009 at 1:18 pm
Hi Alan,
When you’re trying to hit a double, how do you decide when to sell the option again? Do you have a limit on how many days you’ll wait for the stock to recover? I assume a hard deadline would be a week prior to option expiration?
Thx,
Dave
29 Sam T. // Dec 4, 2009 at 2:17 pm
Alan,
I’ve been lurking around your website since the end of last year. I prefer observing from afar rather than being a regular blogger. Having said that I felt obligated to let you know how I’ve faired this year, but first I wanted to tell you a little about my particular situation.
I’ve been investing in the stock market for over 40 years now. I haven’t done well most of the time, but have done OK once in a while. I’ll turn 69 in January and am still working 3 days a week. I plan to gradually work fewer hours until I retire completely in January of 2012. I lost a bundle last year and decided then there must be a better way. I did an awful lot of research, and soul searching, and happened to find you. Thank you Google.
I determined that I needed to make a return of 30% per year in my IRA to make my plan work. 30% annually happens to be 2.25% compounded monthly, which also happens to be right up your alley, actually the lower end. I liked everything about your approach and decided to commit to it. I bought both of your books and come here every day to learn some valuable information.
Through Expiration Friday in November I made a return of 36.7% over December 31, 2008. So I’ve already passed my goal. If December goes according to Ellman, my return will be over 40%. Even if it doesn’t pan out, I’ll still be over 30%.
Now I know the market has gone up and a lot of people have made even more. But I’m here to tell you I sleep better at night, I don’t have to spend an awful lot of time trying to guess the next move and once you get the hang of it, it’s so easy a caveman can do it!
I could have done a lot better if I had traded some OTM calls, but I’ve stayed mostly with ITM and ATM calls because they are less risky and meet my goals. FYI here’s what I’ve done this month.
Bought VIT at 17.65, sold the 17.5 call at 1.15. Closed today at 17.25 and .65.
Bought MED at 27.85, sold the 25 call at 3.50. Closed today at 31.64 and 6.30.
Bought QLD at 55.70, sold the 54 call at 3.10. Closed today at 55.14 and 2.15.
Bought GMCR at 65.97, sold the 65 call at 3.50. Sold GMCR at 61.07 and bought the call back at 1.25 on December 2.
Today bought BVN at 38.49, sold the 40 call at .80. Closed today at 39.84 and 1.40.
Alan, you and your staff are doing a great job here. I’m sorry this has gone on this long, but I had to tell it like it is. If you do this right, i.e. pick the stock your way, stay conservative, monitor your situation, be prepared with your exit strategies, you can certainly make 2% – 4% per month as you say.
Thanks for every thing and holiday greetings to you and everyone here. I probably won’t comment for another year, but I will be lurking in the shadows.
Sam
30 admin // Dec 4, 2009 at 3:04 pm
Dave (# 28),
Much like the evaluation of a price chart, there are several factors that go into this decision. Here are some:
- Market direction
- Stock technicals
- ER next contract period?
- Has the stock continued to decline, stay level, start to rise?
- Do I want to keep this stock in my portfolio for the next contract cycle?
Since going through all the combinations can be a full chapter in my next book (thanks for the idea!), let’s use this scenario:
average market ( up almost 1%/month)
mixed to positve stock technicals
no upcoming ER
a possible candidate to keep for the next contract cycle
has remained flat since the option was bought back
In this case, you would wait until 5-8 trading days before expiration. After that, the time value on the option (for most equities) would have eroded and your only hope of additional cash would be the actual stock appreciation. At this point, you may look to roll down and generate a little cash and a little protection or sell the stock and try to squeeze out another 1 to 1 1/2% before expiration with another financial soldier. If you still like the stock, just keep it until after expiration and sell the option with at least 3 weeeks remaining in the next cycle. Remember, you have only lost 10-20% of the original premium so a 3.5% premium return became a 2.8% return. If you still like the stock, worse things can happen.
Alan
31 Steve Q. // Dec 4, 2009 at 3:07 pm
All,
I too had a similar experience to Sams, lost a bundle last year courtesy of my stock broker, and decided there had to be a better way. Starting in December of 2008 I bought Alans first book and many more by various authors. I studied everything I could get my hands on until June of this year when I started doing cc’s with a very small portion of my portfolio. I have used Alans system mostly and have consistently earned 2 – 3 % monthly primarily with ITM calls. I missed some upside due to this, but thats ok.
Jan 1 2009 I plan to devote up to 20% of my portfolioto to cc writing based primarily on Alans guidelines. My goal is to earn a modest 1% per month writing primarily ITM calls.
This website has been invaluable to me. I look forward to participating in the forthcoming premium membership.
Thanks again Alan for all your help.
Steve
32 admin // Dec 4, 2009 at 3:13 pm
Sam T. (# 29),
I am going to consider your comments the best holiday gift an author/blogger could possibly receive.
Feel free to continue to lurk in the background but also consider stopping in once in a while as it appears that you have a lot to offer our group.
Thank you for your generous remarks and congratulations on your impressive results.
Alan
33 Barry Bergman // Dec 4, 2009 at 10:19 pm
Sam T. and Steve Q.,
I have a similar set of experiences. Guys…way to go!
Barry
34 admin // Dec 5, 2009 at 4:13 am
Thanks also to Steve, Barry and all those who have sent off-site endorsements. Kudos on your well-deserved achievements.
Alan
35 admin // Dec 5, 2009 at 7:37 am
Putting the finishing touches on my upcoming journal article which will discuss derivatives, an update on flash-trading and we’ll have a look at “The Chart of the Week”.
Alan
36 Don B // Dec 5, 2009 at 11:04 am
Alan,
Just a few comments after listening to your wonderful CD, and after reading some of the latest posts on this site.
I note that some folks comment on their success by telling what percent their account has gained since starting writing options. This puzzles me – am I the only one who has the option writing activities in the same account with other type of investments – such as mutual funds?
I actually learned about CC writing perhaps 30 years ago. Using a broker, of course. What we must all now appreciate, however, is the absolute value that goes with the use of the computer, online trading. In each CC situati0n, I remember I would have to ask the broker for a stock & call write idea. Plain clumsy! From the broker standpoint, he had to take the time to analyze these for you – while time represents money to him. Therefore, not so good for us. And the brokerage commissions destroy numerous choices that would otherwise work well. Your parents would have seen the pre-computer investment world the same way.
I started with you on your Exit Strategies book. Amazon must have hundreds of books on options – cannot help but wonder just how I chose yours. My good fortune!
FWIW.
Don
37 Steve Q. // Dec 5, 2009 at 1:07 pm
Don:
I keep my cc writing in a separate, taxable account at Trade King to make it easier to track my returns. I unfortunately have lots of loss carry forward from 2008 to offset my gains in the taxable cc account for the next few years.
Steve
38 Don B // Dec 5, 2009 at 2:49 pm
Thanx toSTEVE Q – post #37. I use our family account, my wife’s IRA, and my IRA for call writing, so 3 accts. In each and every case I know in detail how each item is doing, and as I go along I know how we are doing. I suspect the only way I could know how the options taken alone but in total do, would be to set up separate bookkeeping. Shucks, maybe I will. BTW, I use Fidelity – low commissions, easy to use software as well. Hope you can shut out those losses soon.
FWIW.
Don B
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