Comments on: Fundamental Ratios: P/E, PEG and PEGY https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/ Learn how to invest by selling stock options. Thu, 05 Jan 2012 20:08:16 +0000 hourly 1 By: Kevin https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3056 Sat, 02 Jul 2011 13:04:20 +0000 /blog/?p=3551#comment-3056 Alan,

Thanks for that last post. I was wondering why I couldn’t pull up any information on this stock. By the way, this stock has been a big winner for me the past few months. Keep up the good work.

Kevin

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By: admin https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3055 Fri, 01 Jul 2011 15:38:11 +0000 /blog/?p=3551#comment-3055 HOC = HFC:

HOC, a stock on our premium watch list is now trading under the ticker symbol HFC as a result of a recent merger. If you own HOC the only change is the name as the number of shares remains the same and there is no cash settlement either way. If you own this stock please change the ticker symbol in your portfolio manager list.

Alan

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By: admin https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3054 Fri, 01 Jul 2011 09:56:24 +0000 /blog/?p=3551#comment-3054 ACN:

On June 28th this recent entry to our premium watch list announced that Standard & Poor’s will add Accenture’s common stock to the S&P 500 Index after the close of trading on Tuesday, July 5. Mutual funds and ETFs that reflect this benchmark will be required to purchase these shares based on its market capitalization. Our premium report shows this stock has an industry segment rank of “B”, a beta of 0.77 and a dividend yield of 1.60.

Alan

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By: admin https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3053 Thu, 30 Jun 2011 22:42:53 +0000 /blog/?p=3551#comment-3053 Premium members:

This week’s 6-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site.

For your convenience, here is the link to login to the premium site:

http://www.thebluecollarinvestor.com/member/login.php

Not a premium member? Check out this link:

http://www.thebluecollarinvestor.com/membership.shtml

Alan and the BCI team

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By: admin https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3052 Thu, 30 Jun 2011 18:37:16 +0000 /blog/?p=3551#comment-3052 Meryl,

Adding to Owen’s comment:

There is a lot of good news associated with the scenario you present:

1- You have (to this point) achieved your goals of a great 1-month option return + share appreciation to the strike price had you sold an out-of-the-money strike.

2- If your stock price is well above the strike, that profit is proteced from the current market value down to the strike price.

3- If the time value of the current option price approaches zero, we can invoke the “mid-contract unwind” exit strategy where we buy back the option, sell the stock and use the cash to set up a new covered call position and a second income stream in the same month with the same cash.

Alan

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By: owenCPA https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3051 Thu, 30 Jun 2011 18:33:36 +0000 /blog/?p=3551#comment-3051 Meryl #24,

Yes, if you still have faith in the stock. You can buy back the call you sold, which will have little, or no, time premium left, and sell a higher strike price call, either for the same month, or the next month out. This should be done only for a stock you believe still has more upside potential, otherwise you risk giving up the gain you already had, and perhaps more.

I view my positions with two numbers in mind, the gain I already have, and what I have left to make. Example: this morning I closed out an Apple trade. I had already built a paper gain of $158, but based on the prices this morning there was only the potential to earn another $42 in the next three weeks. Why tie up the money for another $42?

So, I closed the position and opened a new one, getting $410 in the process, with the same three weeks to go. So, which is better? Keep $3,000 tied up to gain that last $42, or use it for another position that may return $410 in the same time period. I hope I didn’t really have to ask that question.

When you evaluate your current positions you MUST look at them with an eye on WHAT YOU HAVE LEFT TO EARN. It should be a very important piece of your “hold or close” decision. Again, a very simple rule of thumb might be, l0ok at the position as if you did not already own it. The stock you bought at $34, is now $39. The $35 call you sold for $1.43 is now $4.20. That means you have the potential to earn the last $0.20 in the next three weeks. Question: would you invest $3,900 in that stock to earn $20 over the next three weeks? Yes, keep it. No, move on. Buy back the $35 and sell the $37.50 or $40 call. Close it out completely and pick another prospect off your watch list. Close it out completely, smile smugly at your spouse, and say, “I told you BCI was a good idea.”

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By: Meryl https://www.thebluecollarinvestor.com/fundamental-ratios-pe-peg-and-pegy-2/#comment-3050 Thu, 30 Jun 2011 15:57:36 +0000 /blog/?p=3551#comment-3050 If a stock price is well above the strike price is there anything we could do to capture some of that profit?

Thank you.

Meryl

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