Comments on: Complex and Leveraged Exchange-Traded Funds https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/ Learn how to invest by selling stock options. Thu, 24 Jan 2013 23:20:55 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9187 Thu, 24 Jan 2013 23:20:55 +0000 /?p=7402#comment-9187 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/complex-and-leveraged-exchange-traded-funds/#comment-9179 Thu, 24 Jan 2013 14:31:38 +0000 /?p=7402#comment-9179 In reply to Mark.

Mark,

Four times a year (earnings season) we are challenged because of the large percentage of stocks ineligible until their earnings reports passes. I’ve published an article explaining a few ways to circumvent this issue:

http://www.thebluecollarinvestor.com/constructing-your-covered-call-portfolio-during-earnings-season/

I like to enter my positions no later than the first week of a 4-week contract and in the first 7-8 trading days of a 5-week contract due to time value erosion of the premiums. Although my goal is normally 2-4%, if I am unable to find enough candidates during earnings season, 1 1/2% will suffice. I actually use a goal of 1-2% for ETFs which I use in my mother’s account.

CONGRATS on your recent success!

Alan

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By: Mark https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9173 Wed, 23 Jan 2013 23:03:41 +0000 /?p=7402#comment-9173 Hi Alan,

I just wrapped up a very successful January option period. Thanks to you and your system!!! 🙂

Now as I am looking for cc positions for February I am having a hard time finding stocks that passed the screening tests that also have a good return (2%+ for ATM or slightly ITM). I assume this is mostly a function of the very low volatility…I don’t think the VIX has been this low since 2007.

Anyway, my question is what advise would you give for this situation?

– Look for additional return on OTM positions? (Your summary suggests equal numbers of ITM and OTM positions right now.)

– Wait for returns to potentially improve over the next week? (How quickly do you try to establish your positions each month?)

– Go ahead and open positions with about a 1.5% return?

– Other ideas/advice?

Thanks in advance for any advice you have.

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By: Alan Ellman https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9160 Wed, 23 Jan 2013 13:15:29 +0000 /?p=7402#comment-9160 In reply to Saul.

Saul,

Because of the exponential increase in the number and type of option products there are exceptions to the following rule:

Option strikes trade in $2.50 increments up to $25, then in $5 increments up to $200, and in $10 increments above $200.

Alan

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By: Saul https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9141 Wed, 23 Jan 2013 00:05:17 +0000 /?p=7402#comment-9141 Alan,

The option chain fo BLK shows strike price in 5 dollar increments up to 200 and then 10 increments after that. Is this typical or unusual?

Thanks for your great work.

Saul

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By: Alan Ellman https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9111 Mon, 21 Jan 2013 19:55:21 +0000 /?p=7402#comment-9111 In reply to Shirley.

Shirley,

The stocks highlighted in the “gold” rows are projected to report earnings during the February contracts are not eligible UNTIL AFTER THE REPORT PASSES. For example, six of these equities are scheduled to report in the first week (above broken black line) and will still have 3-weeks of time value left before expiration. Also, check out our weekly ETF reports which are candidates where earnings is not a factor.

Great to have you as a premium member.

Alan

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By: Shirley https://www.thebluecollarinvestor.com/complex-and-leveraged-exchange-traded-funds/#comment-9101 Mon, 21 Jan 2013 15:31:57 +0000 /?p=7402#comment-9101 Alan,

I’m a new member and excited to begin taking control of my finances. I need you to clarify one point about the stock report. Are all the stocks in the gold rows not eligible for the Febraury options. If so, it seems like more than half are eliminated. Please explain.

Thank you.

Shirley

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