Comments on: Profit And Loss Graphs For Covered Call Writing https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/ Learn how to invest by selling stock options. Mon, 12 Dec 2016 12:58:36 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-85220 Mon, 12 Dec 2016 12:58:36 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-85220 In reply to Ryan.

Ryan,

This article was linked back from an article I wrote on 12/9/2016. The market tone in this article is accurate for 9/2013 when it was published.

Alan

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By: Ryan https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-84966 Sun, 11 Dec 2016 16:00:13 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-84966 Looks like the market tone information is from a different time period.

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By: Alan Ellman https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-16783 Thu, 19 Sep 2013 21:30:33 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-16783 NEW YORK SEMINAR:

I just accepted an invitation to speak at the New York Traders Expo @ the Marriott Marquis Hotel in NYC. The event takes place between February 16th-18th, 2014. I will post my seminar slot once the schedule is set. Thanks to all of you for your continued support over the years that has allowed me to receive such prestigious invitations.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-16778 Wed, 18 Sep 2013 22:35:21 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-16778 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. The report also lists Top-performing ETFs with Weekly options.

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: Alan Ellman https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-16763 Tue, 17 Sep 2013 18:31:09 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-16763 In reply to Mike.

Mike,

The reason these stocks were removed from our Premium Running List is due to weakening technicals. Although the chart is uptrending for KORS there are bearish signals from the MACD histogram, the stochastic oscillator and negative volume diveregnce for the chart shown below for KORS. These are still great companies just not the best of the best at this point in time (KORS has made a lot of money for many of our members!).

There are 2 obvious choices now:

1- Allow assignment and use the cash to institute new positions next week

2- Roll the option. In this case you want to make sure the returns meet your goals (2-4% per month in my case) and have adequate downside protection for a chart with mixed technicals.

Congratulations on some great trades!

CLICK ON IMAGE TO ENLARGE AND USE THE BACK ARROW TO RETURN TO THIS BLOG:

Alan

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By: Mike https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-16754 Tue, 17 Sep 2013 11:27:19 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-16754 Alan,

My first option cycle is almost complete. I\’m in the enviable position of facing assignment for four out of five of my purchases (KORS, NTES,WWWW,EDU, with OPEN a recent laggard).

I note that KORS and NTES are no longer on the running list for having failed the MCD/STO screen. Is that reason enough to just dump them and carry on with something on the uptrend?

Aside from that there\’s no bad news on either that I can find. Next months Calls are nicely profitable on both. What would you advise?

Newbie Mike from Alberta

Many thanks

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By: Alan Ellman https://www.thebluecollarinvestor.com/profit-and-loss-graphs-for-covered-call-writing/#comment-16749 Tue, 17 Sep 2013 07:57:25 +0000 http://www.thebluecollarinvestor.com/?p=8553#comment-16749 In reply to Rod.

Rod,

You now have to buy-to-close the $20.65 contracts. Here’s why:

EDU announced a 1-time special cash dividend of $0.35 per share or $35 per contract…$70 in your case. You will see this cash in your account on the payable date which is October 7th. Whenever a dividend is distributed, the price of a stock will decline by the dividend amount. In order to make option buyers and sellers “whole” the OCC adjusts option contracts accordingly. As you can see in th screenshot below, contracts were adjusted down by $0.35. You are made “whole” because although you are obligated to sell at a lower price, you are the one (not the option buyer) who will capture the dividend. CLICK ON IMAGE TO ENLARGE AND USE THE BACK ARROW TO RETURN TO BLOG:

Alan

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