Comments on: The Blue Collar Stock Market Meets the S&P 500 https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/ Learn how to invest by selling stock options. Thu, 05 Jan 2012 20:40:14 +0000 hourly 1 By: admin https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-331 Sat, 28 Feb 2009 01:32:52 +0000 /blog/?p=726#comment-331 Barry,

I will include more detailed thoughts relating to I-T-M strikes in the near future (perhaps part of next weeks article). In the interim, here’s a link to an article I wrote a few weeks ago that may answer some of your concerns:

http://www.thebluecollarinvestor.com/blog/selecting-the-best-strike-price/

Alan

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By: Barry Bergman https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-330 Fri, 27 Feb 2009 20:54:59 +0000 /blog/?p=726#comment-330 Alan,

Sorry…finger slipped on the last email. If you have the time in the near future, can you do a detailed piece on the issues surrounding when you do an ITM, ATM, or OTM. I’m comfortable with ATM and OTM, but you’ve discussed ITM writing a lot lately and I need to get more comfortable with making that decision.

The best,

Barry

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By: admin https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-329 Fri, 27 Feb 2009 20:15:23 +0000 /blog/?p=726#comment-329 Don’t touch that gold, it’s still hot!

Just finished taping a radio program interview. I checked the strong industries of the past few weeks that continue to show strength and Gold/Silver is still up there.

LIHR is currently selling for $21.70. If we sell the 3/20 call, we collect $230.

Our ROO = 230-170/2000 = 3% 3-week return

Our downside protection = 170/2170 = 7.8%

This means that we are guaranteed a 3%, 3-week return as long as our shares do not depreciate in value by more than 7.8%.

Working on a really interesting article for this weeks publication. Don’t miss it!

Alan

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By: admin https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-328 Thu, 26 Feb 2009 17:57:15 +0000 /blog/?p=726#comment-328 STOCK SPLITS AND LOCATING GEMS:

Another method I use to l0cate great performers is to check stocks that have declared splits. In many instances (but not all) a corporation will declare a stock split as a result of an increasing share price. By splitting the stock, the price will be decreased allowing many investors to purchase more shares at the lowered price. We DO NOT get additional value from the split, just an opportunity to buy more shares at the lowered price. For example, in a 2-for-1 split, 100 shares of a $50 stock becomes 200 shares of a $25 stock.

Tuesday, after market hours, MYGN declared a 2-for-1 split. I checked to see if it met our system criteria and it did. It is now on my watchlist.

At the time of this post, MYGN was priced @ $82.73/share. If we sold the March $80, I-T-M call, it would return $7.40.

The ROO = (740-273/8000) = 6% 1-month return or 72% annualized.

Our downside protection is 273/8273 = 3%.

We generate a 6% 1-month return as long as our shares do not decrease by more than 3% before March 20th.

I plan to write a detailed article on stock splits and their impact on cc writing within the next month or two.

My best to all,
Alan

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By: Mark Green https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-327 Thu, 26 Feb 2009 01:50:44 +0000 /blog/?p=726#comment-327 Excellent information.

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By: admin https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-326 Wed, 25 Feb 2009 15:01:56 +0000 /blog/?p=726#comment-326 Keep an eye on HRL and VTR:

These two stocks will be added to the S&P 500, replacing ACAS and JNY. The very popular S&P 500 Index funds will be required to purchase shares of these 2 companies and sell those of the replaced corporations.

Although neither currently meets our system criteria, things could change as shares are purchased by these institutional players.

Alan

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By: admin https://www.thebluecollarinvestor.com/the-blue-collar-stock-market-meets-the-sp-500/#comment-325 Tue, 24 Feb 2009 19:25:29 +0000 /blog/?p=726#comment-325 Locating stocks by volume:

Two of the most actively traded stocks today that have appreciated in value are ESRX and SEPR. Neither one meets all the criteria of our system but checking out other stocks in the same industry may help us locate some gems.

Here are a few stocks in these 2 industries for you to check out and see if they belong on your watchlist:

1- Medical Services (ESRX):

WOOF, DGX, MHS

2- Medical/ Biomed (SEPR):

GILD, GENZ, DNA, AMGN

A stock going up in value on high volume means the “big boys” and taking positions in these stocks and their associated industries. Oftentimes, that bodes well for other corporations within those same industries.

Alan

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