Comments on: Price Gaps and the Need for Exit Strategy Execution https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/ Learn how to invest by selling stock options. Sun, 10 Dec 2017 01:10:29 +0000 hourly 1 By: jef https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-142136 Sun, 10 Dec 2017 01:10:29 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-142136 great work alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141856 Fri, 08 Dec 2017 10:48:33 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141856 In reply to Carl.

Carl,

For traditional covered call writing (the way I approach the strategy) our portfolios will turn over 20 – 80% per month mainly due to avoiding earnings reports.

Exceptions to this guideline are portfolios consisting of exchange-traded funds, a strategy I use in my mother’s portfolio, and portfolio overwriting where we write calls only on long-term buy-and-hold portfolios.

Alan

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By: Carl https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141855 Fri, 08 Dec 2017 07:03:22 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141855 Alan,

By the nature of the BCI strategy, is it likely that stocks turn over monthly?

What is the typical amount of turnover?

Carl

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By: Jay https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141695 Thu, 07 Dec 2017 18:13:51 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141695 In reply to Jay.

Thank you Terry! I just put a stop loss under those two contracts to protect 50% speculative gains, will move it up if I can and use the money for Christmas presents :).

What a wonderful world it would be if all trades worked out like this one? But they don’t. So when I speculate/gamble I do it small.

The more important point is that covered call writers who followed Alan’s guidelines in this trade bought their calls back at a profit. They are now free agents in a quality stock that simply got zinged one day on a fluke news event unrelated to earnings or other fundamentals. Hitting a double for next week or just enjoying the bounce are nice choices to have! – Jay

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By: Jay https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141535 Wed, 06 Dec 2017 23:14:48 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141535 In reply to MarioG.

Mario,

Thank you for your always thoughtful post.

It occurs to me we are playing this game against SPY.

I find it helpful to compare my results on a frequent basis to SPY to see if I am just pissing in the wind :)? – Jay

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By: Alan Ellman https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141529 Wed, 06 Dec 2017 22:09:11 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141529 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:

http://www.thebluecollarinvestor.com/membership.shtml

Alan and the BCI team

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By: MarioG https://www.thebluecollarinvestor.com/price-gaps-and-the-need-for-exit-strategy-execution/#comment-141515 Wed, 06 Dec 2017 20:01:46 +0000 http://www.thebluecollarinvestor.com/?p=16119#comment-141515 In reply to MarioG.

Comments on ETF Portfolio:
Even though it is YTD at 1.55% today, it is very sensitive to the 4 positions owned. Just 2 weeks ago on Expiration Friday 11/17/17 the YTD Gain was 6.83% or 11.8% annualized.

So I think it is positioned well and ready for a price swing in those positions.

I remember last years 2 month time period (at least for me) from 11/2016 to 12/2016. The Market did very well those last two months and perked up our portfolios to end up the year looking better. It’s a matter of averaging out those ups and downs over the year.

Looking back further I remember well while working in my career earning those hard earned dollars, I had no time to look at my investments seriously and they were in safe funds not taking advantage of those yearly gains being experienced in many Mutual funds, but I was satisfied.

We controlled our budget well, did not lease a car every three years but held them for many years. We were sitting pretty, with our 2 Social Security payments and the yearly combined RMD’s to meet our budget, including some money for a vacation. Not everyone is as fortunate, as it depends a lot on fate for all of us where you are in your future.

A frustrating point that I experienced was the 10 year period several years back where your funds essentially stayed flat in a 60/40 professionally managed account. If you looked at the year to year fund performances it seems like you missed out on a lot of opportunities.

I hope Alan’s methodology for managing your retirement funds continues to reach more in their working years so their funds do experience some magnificent returns by the time they reach retirement.

Mario

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