Comments on: In-The-Money Call Strikes: Intrinsic Value Protects Time Value https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/ Learn how to invest by selling stock options. Sat, 26 May 2018 18:49:55 +0000 hourly 1 By: Roni https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165606 Sat, 26 May 2018 18:49:55 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165606 In reply to MarioG.

Mario,

you are totally right about being careful during volatility, and staying in cash partially until the market calms down.

I know the risk of being fully invested, but I say to myself :
“there is always something happening, plus there are 4 earnings seasons to worry about too”.
Therefore, I only stay in cash when some really big event is on the horizon, such as Brexit for example.

See you on next week’s thread.

Roni

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By: MarioG https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165552 Sat, 26 May 2018 03:08:13 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165552 In reply to Roni.

Roni,

PYPL and GRUB are good picks. I looked at the numbers and chart. I also calculate the BEP and see how it relates to support levels on the down side and margin to breakeven. I don’t like to see a lot of price swings which I feel reduces my chances of having a good end of cycle outcome.

I picked up ZBRA CC today at 2.0%/2.34% OTM strike 155 and sold RHT (long) since it was under performing.

Mario

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By: Roni https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165524 Fri, 25 May 2018 17:55:36 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165524 In reply to MarioG.

Thanks Mario,

yes, it is a difficult year.
May was good to me, but the previous 3 months set me back quite a bit.

Yesterday I added PYPL, QCOM, NFLX, and GRUB when the 06/15 ATM calls were above 2% ROO.
So now I am fully invested again.

My belief is that I need to have as many positions as possible in each monthly options cycle, because some will probably go against me, and I need several others to cover the losses and hopefully make some profit.

Roni

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By: MarioG https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165459 Fri, 25 May 2018 05:07:52 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165459 In reply to Roni.

Roni,

The 3.5% is a good number for May the cycle. Congratulations.

Funny, how the volatility this year after the market’s peaceful rise in 2017, has brought new challenges in our monthly trading. It’s affected how I now select some stocks to reduce my risk exposure. I now want to wait with some cash for better price opportunities. That’s in today’s market. Doing the same last year I would have missed upside gains.

I am 75% invested now. Hold positions in BOFI (CC), KWEB (Long) NSP (Long) RHT (Long) VNOM (CC) CVX (Long) KBE (CC) XHB (Long).

Good luck,
Mario

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By: Roni https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165410 Thu, 24 May 2018 16:27:50 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165410 Hello Mario and friends.

Thank you for sharing your expiration results.

I had similar results this month (3.5%) with my purely stock/CC trades.
10 out of 11 were assigned, leaving me almost fully in cash on Monday.
I am having a difficult time placing new trades, and I am still 50% in cash today.

I now have ALGN, SCHW, ILMN, and NVDA, in the 06/15 cycle, plus CRM (rolled out from last cycle) and expiring tomorrow.

Roni

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By: Jay https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165405 Thu, 24 May 2018 15:04:55 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165405 In reply to Terry.

Good morning Mario and Terry!

Mario, I don’t know how “big picture” I am but thank you for your always kind words! I do a lot of vertical spreads and they are a logical extension of our options trading once we feel comfortable with cc’s and csp’s as a baseline. They likely require Level 2 option clearance in IRA’s but that’s an automatic request once they see you have been selling/rolling the others.

Terry, I have a large QQQ position and a smaller IWM position I acquired through the csp process for the most part. I use a 1% monthly target on index ETF’s in both the cc and csp direction.

So, for example, if I was interested in buying the next dip since the Qs are down today I could go all the way down to the July 160 put and sell it for just over 1% and Q’s would need to drop 5% for me to be assigned. But that is cash intensive and not everyone would be interested in tying up the money for that return/opportunity in that period of time.

On the cc side I don’t have anything covered at the moment except GLD which I am bearish on. I use a loose rule of thumb that if the VIX is below 15 and the indexes are above their 50 day moving averages I buy option spreads since premium is low and there is usually a general up trend in place in those conditions. I don’t over write then for the same reasons. I struggle with blocking upside more than most do but that is my issue :)! As VIX and premium rises I switch more to the sell side in options transactions.

Just one hobbyist’s trading style among countless others, for what it’s worth. Thank you for asking! – Jay

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By: Barry B https://www.thebluecollarinvestor.com/in-the-money-call-strikes-intrinsic-value-protects-time-value/#comment-165402 Thu, 24 May 2018 14:41:12 +0000 http://www.thebluecollarinvestor.com/?p=16605#comment-165402 Premium Members,

OLLI has just confirmed their next ER date. It is scheduled for 06/05/18. The Weekly Report for 05/25/18 will reflect this change.

Best,

Barry and The Blue Collar Investor Team

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