Comments on: RISING OIL PRICES CREATE BLUE COLLAR OPPORTUNITIES

By: BOB BELTON

BOB BELTON — Wed, 16 Jul 2008 04:24:45 +0000

Hi Alan, I haven’t as yet received my discs but I have a hypotheical question. Purchase XYZ stock at 50 and get a premium of 2.40. Assuming all the buy parameters are met, and it is a good stock, it drops to 44. We are near expiration and next months premium is only 1.00 ( at strike price of 50. Do you sell the premium or sit on the stock for awhile to get a better premium, or sell a premium two months out, and maybe break even, (assuming it doesn’t drop further. The market is oversold now, and we should get a bounce in the near future. Hopefully I presented the problem correctly. Bob

By: Walker

Walker — Tue, 08 Jul 2008 17:22:50 +0000

Hi Alan,

I truly enjoy reading your blog.

I recently got into TTES ~ ATW ~ FTI ~ I am holding on to this raging bull with both hands and knees and riding it for all it is worth.

With all the comments you mentioned earlier and listening to all the other pundits, we are in the sweet spot.

Thanks.

By: admin

admin — Mon, 07 Jul 2008 18:15:25 +0000

BVN STOCK SPLIT

For those of you who have BVN on your watch list, I just read that this Peruvian mining company announced a 2-for-1 stock split. The effective date of the share increase is July 21st or 22nd. See chapter 17 in my book, Cashing in on Covered Calls, and pages 144-146 in the companion WorkBook to review how a split affects our option contracts. This split will NOT affect the July contracts since Expiration Friday is on July 18th.
Alan

By: Brian

Brian — Mon, 07 Jul 2008 00:42:46 +0000

Long RIG and CHK, with good opportunity recently to buy on the dips. Second covered call on APC- 1st yielded 8%. As Cramer states, take your revenge on higher energy prices !

By: Barry

Barry — Sun, 06 Jul 2008 17:52:19 +0000

I just got out of HK on Friday for a two week gain of 13.5%. I plan to re-enter the HK position when the price drops a bit so I can compound the gain.

Barry