Comments on: Rolling Out Decisions: Evaluating a Real Life Trade https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/ Learn how to invest by selling stock options. Sat, 08 Aug 2015 21:55:02 +0000 hourly 1 By: Roni https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23835 Sat, 08 Aug 2015 21:55:02 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23835 In reply to Jay.

Hello Jay,
sorry for delayed response. I bought a new computer and missed some online time.
My new beast is a rocket !!! Really great.

You are right about separating hi-growth, growth, and stable stocks. It is certainly more lucrative.

My problem is that I’m chicken, soooo…. chicken.
Therefore, I follow Alans method by the rules, and never regret missed gains.
When a stock I hold goes parabolic before expiration, I feel good and assured that my trade will succeed.
When it is called away, I remove it from my watch list, and never check it out until it shows up again on the BCI weekly stock screen.

All my positions are protected by covered calls to minimize losses when a stock goes down.

It’s always fun, just the same. – Roni

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By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23818 Thu, 06 Aug 2015 10:59:06 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23818 AAPL: Regular Dividend:

AAPL will begin trading ex-dividend today with a $0.52 dividend payable to shareholders of record as of 08/10/15. The pay date is August 13th.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23817 Thu, 06 Aug 2015 10:48:44 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23817 In reply to Adrian.

Adrian,

My responses:

1- Option liquidity standards apply to all strikes.

2- Correct with the caveat that there may be a “Y” in that column in the following week’s report

3- Absolutely, we base our investment decisions on the most recent information

4- Set your goal for returns and keep in mind diversification (your not going to select a computer hardware stock if you already have others from that industry segment in your portfolio). Check our Premium Watch List (Running List) and select the strongest candidate. For example, you may look to stocks in bold with industry rankings of “A” (this is just one approach of many). Any selection should meet our liquidity standards.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23816 Thu, 06 Aug 2015 09:53:20 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23816 In reply to Steven.

Steven,

Lots of factors will dictate my response…earnings reports coming up?, “moneyness” of strikes used that month, market behavior that month etc. Here is a general response for options overall:

10% of options contracts end up being exercised, and 55-60% get closed out before expiration (including rolling options), that leaves about 30-35% of contracts that actually expire worthless.

Alan

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By: Steven https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23815 Thu, 06 Aug 2015 09:48:38 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23815 Alan,

Thanks for the very informative video series. If you had to ballpark guess what % of your covered calls do you just let expire vs. buying back to close? tnx again, steven

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By: Alan Ellman https://www.thebluecollarinvestor.com/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23811 Wed, 05 Aug 2015 21:17:54 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23811 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/rolling-out-decisions-evaluating-a-real-life-trade/#comment-23808 Wed, 05 Aug 2015 15:02:39 +0000 http://www.thebluecollarinvestor.com/?p=12658#comment-23808 In reply to Nate.

Notice how Nate correctly used the term “cash-secured puts” when requesting a level of trading approval. Some investors confuse the term “covered puts” which involves selling a put as well as short-selling a stock…a different strategy entirely. Check out this article:

http://www.thebluecollarinvestor.com/covered-puts-versus-covered-calls/

Alan

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