Comments on: “Hitting a Put Triple” with Lowe’s Companies, Inc. (NYSE: LOW) https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/ Learn how to invest by selling stock options. Fri, 01 Oct 2021 16:45:46 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-473103 Fri, 01 Oct 2021 16:45:46 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-473103 INMD splits 2-for-1 today. Share price did not drop by 50%. We now are short twice as many contracts at half the strike price.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-471198 Tue, 28 Sep 2021 21:20:55 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-471198 Premium members:

This week’s 4-page report of top-performing ETFs and analysis of the top-performing Select Sector SPDRs has been uploaded to your premium site. One and three-month analysis are included in the report. Weekly performance has also been incorporated into the report although not part of the screening process. Weekly option availability and implied volatility stats are also incorporated.

The mid-week market tone is located on page 1 of the report.

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By: Alan Ellman https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-471015 Tue, 28 Sep 2021 13:30:30 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-471015 In reply to Richard.

Richard,

Sure looks like a triple to me. You managed an initial time-value return of 4.9% up to 8% by rolling your options. Well done.

Plenty of time remaining for 4-bagger! Keep us informed.

Alan

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By: Richard https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-470953 Tue, 28 Sep 2021 06:53:34 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-470953 Hi Alan,

Not sure if this counts as a triple, but here are some ZIM trades I’ve done this month:

September 2: ZIM trading at $52.53. Sold the Oct 15 48P for $2.25
September 16: ZIM trading at $60.65. Bought back the put for $0.50
September 22: ZIM trading at $55. Sold the Oct 15 48P for $1.00
September 23: ZIM trading at $58.90. Bought back the put for $0.50 (not 20% but a good return for one day)
September 27 (today): ZIM trading at $55.10. Sold the Oct 15 50P for $1.30

We will see how it plays out from here.

Cheers,
Richard

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By: Barry B https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-469951 Sun, 26 Sep 2021 06:17:46 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-469951 Premium Members,

This week’s Weekly Stock Screen And Watch List has been uploaded to The Blue Collar Investor Premium Member site and is available for download in the “Reports” section. Look for the report dated 09/24/21.

Also, be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them on The Blue Collar YouTube Channel. For your convenience, the link to the BCI YouTube Channel is:

http://www.youtube.com/user/BlueCollarInvestor

On the front page of the Weekly Stock Report, we now display the Top Performing ETFs, the Top SPDR Sector Funds, and the 4 single Inverse Index Funds. They are sorted using the 1-month performances from the Wednesday night ETF report and the prices from the weekend close.

Please make sure that you review the new feature that we’ve added…Implied Volatility or IV. This is the At The Money (ATM) Implied Volatility for all of the stocks in the report.

Best,

Barry and The Blue Collar Investor Team

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By: Alan Ellman https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-469561 Sat, 25 Sep 2021 11:41:10 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-469561 In reply to Denise.

Denise,

Congratulations on executing your first covered call trade. The numbers you shared look quite reasonable as you now enter “management mode”

The only step that is missing (not included) is the buy-to-close limit order we set up after establishing our covered call trades. This is based on the 20%/10% guidelines. Assuming that this is a monthly contract, the BTC limit order is set at $0.33 ($0.35 if only $0.05 increments are allowed).

These are set up good until cancelled (GTC), not “day only”.

Nice work.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/hitting-a-put-triple-with-lowes-companies-inc-nyse-low/#comment-469557 Sat, 25 Sep 2021 11:30:48 +0000 https://www.thebluecollarinvestor.com/?p=20261#comment-469557 In reply to Donna.

Donna,

The strategy you are favoring is closely related to portfolio overwriting with one stock. We want premium but do not want exercise. In these scenarios, we use deeper OTM strikes and sacrifice premium to decrease the likelihood of the strike ending ITM at expiration.

Two approaches include:

1. Using 10-Delta calls when initiating the trades.

2. The the BCI “Expected Price Range Calculator” This is based on implied volatility at the time the trade is initiated and will give an 84% probability of the strike not expiring ITM at expiration using the upper end of the range. The calculator is located in the “resources/downloads” section of the member site (right side; scroll down to “E”).

An early roll will likely result in a net debit or allow you to roll out-and-up up perhaps to the $379.00 weekly strike with no credit or debit. If there is a price decline in QQQ, it may create an opportunity to close the current trade or allow it to expire.

For me, rolling decisions are made closer to expiration but this creates the possibility of QQQ expiring deep ITM with a large intrinsic-value component.

To be more flexible, perhaps you could consider allowing exercise of QQQ if it expires deep ITM and use a different security within the desired price range moving forward. There are plenty of other securities to consider if QQQ does not meet your needs at this time.

Either way, using the 10-Delta or IV expected price range approach and establishing an upper end to select strikes will make these decisions relatively rare.

Alan

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