Comments on: Comparing the Cost-to-Close with Initial Trade Goal https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/ Learn how to invest by selling stock options. Fri, 21 Feb 2020 15:54:02 +0000 hourly 1 By: Murali https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-262686 Fri, 21 Feb 2020 15:54:02 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-262686 In reply to Alan Ellman.

Yes, I sold 7 cash secured OTM monthly puts yesterday and made $575 in paper trade in one day.

Now I can understand how this can be translated to monthly income by also later selling covered calls on assigned puts.

I will keep you posted.

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By: Alan Ellman https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-262606 Fri, 21 Feb 2020 11:59:52 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-262606 In reply to Murali.

Murali,

Congratulations on paper-trading and going about the learning process in a rationale way that will help protect our hard-earned money. Once we select the underlying security and the option, we then must be prepared to take advantage of exit strategy opportunities should they present themselves.

Keep up the good work.

Alan

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By: Murali https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-262300 Thu, 20 Feb 2020 18:49:07 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-262300 Hi Alan,

I am excited to note that i did sell two cash secured puts first time paper trade in ThinkorSwim and got both of them sold.

I will watch to see if this gets assigned/expired.

Based on the lessons learned here, i am planning to execute similar approach in my Vanguard portfolio after may be 3 months.

This will ensure i best understand the process end-to-end from a practical perspective.

Thanks
Murali

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By: Alan Ellman https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-262124 Wed, 19 Feb 2020 22:19:19 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-262124 Premium members:

This week’s 8-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 as well as the implied volatility of all eligible candidates.

New members check out the video user guide located above the recent reports.

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:

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Alan and the BCI team

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By: Alan Ellman https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-262029 Wed, 19 Feb 2020 11:42:29 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-262029 To our BCI community:

Yesterday, I accepted an invitation to speak at the Seattle Money Show June 12th – 13th. I’ll post details when they are finalized.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-261834 Tue, 18 Feb 2020 11:23:53 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-261834 In reply to Peter.

Peter,

I do not trade warrants so I am not the appropriate resource to assist you in making this decision. Furthermore, we can buy call or put warrants but cannot sell-to-open and since I am on the sell-side of options, warrants do not meet my trading style needs.

That said, I do know the following about warrants:

1. They are issued by a company and do not trade on exchanges.
2. They represent a way a company can raise capital.
3. Like options, holders do not have voting rights and do not collect dividends.
4. Most are longer-term than options, over 10-year expirations in many cases.
5. Frequently tied to corporate bonds as a “sweetener” to accept lower rates.
6. Offer the leverage advantage similar to options.
7. They are not standardized as are options so terms must be understood for each warrant purchased.

Options and warrants are similar but certainly not the same. For options, I feel strongly that the 3-required skills must be mastered before risking our hard-earned money. The same due-diligence must be applied for those who want to endeavor into the world of warrants. I cannot offer that level of knowledge.

Alan

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By: Peter https://www.thebluecollarinvestor.com/comparing-the-cost-to-close-with-initial-trade-goal/#comment-261830 Tue, 18 Feb 2020 07:55:05 +0000 https://www.thebluecollarinvestor.com/?p=18491#comment-261830 Hi Alan,

I had a session today with my wealth advisor and he mentioned possibility to trade warrants on portion of portfolio.

I looked warrants and it seems to me that they are same as options except:
– they are issued by company instead of traders
– company knows what is going on within company (insider knowledge?)

I assume you can not earn dividends on warrants unless you also own the stock.

Do you trade warrants? Pro Cons

Peter

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