Comments on: Treasury Bond Yields and the Stock Market https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/ Learn how to invest by selling stock options. Fri, 01 Mar 2019 10:50:32 +0000 hourly 1 By: Alan Ellman https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198550 Fri, 01 Mar 2019 10:50:32 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198550 In reply to Mariog.

Mario and all members,

I always say that BCI’s success is directly related to the quality and participation of our members.

Thanks to one and all.

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198476 Thu, 28 Feb 2019 12:08:42 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198476 In reply to Terry.

Terry,

1- Adding an “upside potential” cell to the Trade Management/ Roll out-and-up cell of the spreadsheet makes sense. I will work on this with my team.

2- The PMCC simulates buying a stock (or ETF) for the long haul and constantly writing short-term calls against this security. The initial trade is structured by factoring in the difference between the strikes. If we roll the LEAPS out-and-up, we are changing the initial structuring of the trade. We can certainly still do this but I would manage as follows: STC the LEAPS position. Since share price increased and assuming the initial structuring was done properly, we close the entire trade at a profit. At that point, the new parameters can be used in the initial structuring tab.

Alan

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By: Mariog https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198473 Thu, 28 Feb 2019 11:49:20 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198473 Alan,

I was unable to read last weeks blog (Week ending Friday 2/22/19) until last Sunday. After reviewing, I was quite impressed at the variety and excellent question posed by BCI members and the answer given. One of the best blog threads I have read in the several years I have been trading your system.

I may go back and respond to some of the questions later in our current blog..

You can be proud of the response you are getting with the BCI system and the assistance you give and tools you have developed to break into simpler terms the Option mystique.

Mario

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By: Alan Ellman https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198472 Thu, 28 Feb 2019 11:11:11 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198472 In reply to Daniel.

Daniel,

The weekly stock and ETF files we provide to our premium members represent the best underlyings for option-selling based on the BCI methodology screening process of fundamental, technical and common-sense analysis.

We make selections from these files based on portfolio makeup (we won’t add another computer hardware stock if we have others already in our portfolio), personal risk-tolerance (some may not reflect the appropriate volatility to meet our initial time value return goals) and cash available (some may be too expensive).

Check out the videos on the membership site to see examples as to how members can use these files.

Alan

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By: Mariog https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198471 Thu, 28 Feb 2019 11:06:45 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198471 Mark,

Even though we are in the second week of a 4 week cycle you can still make some good choices.

Since you mention you are a beginner, I hope some of my comments will help you and some others. .

Selecting run list symbols to invest:
Remember you also have to diversified with different position (symbols) – I usually end up with around 5-6 identical position in my several accounts beween Fidelity and Etrade (IRAs and Indivitual and 1 trust (5 accounts).. I generally do not break up one symbol position with the contracts of that symbol some OTM and some ITM. The management then becomes too compiicated. There are enough items to keep track in a portfolio.. Remember, when Exp Friday comes, you have to find the time to manage those positions, as well as during the period. (Alan states he does Exp Friday work late in the afternoon. I have not found that possible for me when you have to evaluate Rollout, Rollout and up, play the spread, etc., so I generally allow 1/2 hour per position on Expiration Friday.

What I do is break up my OTM and ITM position between symbols positions.. That’s a better manageable implementation. My goal is to get 92% invested.

I look at the price chart of a stock in the run list and make decision on whether it should be ITM or ITM based on the recent past history.

If moving sideways or show some volatility, and I see a 1.8 – 2.5% return, I will select an ITM posture. Of course if the price of the position is near the upper strike, the ROO% is lousy and I may then pick the OTM upper strike.

If the stock price is rising steadily in the chart, I will select an OTM strike, again in the 1.8 – 2.5 range.

Once I have filled my order, I set the 20% / 10% threshold points with a Buy to Close order. (Remember to change or delete them when the time periods expire and there is no action.

Documenting:
I keep track of my portfolio as I trade by manually entering the kep points on Paper (I call it a Trade Log) and keeping track of the Return Cost Basis and Breakeven point and Cash Balance over one or more months a trade as your roll out to other months. That way I know my Gain/Loss and %Return (ROO%). I also keep a second summary record (Trade Column Log) so I quickly can see positions and make notes.

I am sure BCI members have different methods and techniques to document their trades. I have tried EXCEL (time consuming) and other systems.Remember I have 5 accounts with multiple positions. It would be simpler if I had just 2 accounts but that is not what it is now.

FINVIZ:
I have found a tremendous time save to enter the run list in a FINVIZ portfolio. All the run list. If the run list exceeds 50 stocks, then I code the portfolio with a A, B suffix. When entering the run list in FINVIZ, I code the number of shares to identify bold and Standard stocks in the run run list, and also code the run list stocks for those with earning dates that should not be picked until the ER date has passed. Cool system.

If you enter the FINVIZ portfolio before Market opening on Monday, a simple mouse click will enter last Friday’s close for you. That’s a time saver. I do the same thing with my ETFs from the ETF Report.

I like FINVIZ because you can mouse over a stock symbol and quickly see the recent price chart and you can also view News and other stock information.

Fidelity Portfolios / Watchlist:
I keep track of my 5 accounts very efficiently by using the portfolio / watchlist capability in Fidelity. You can even use them if you do not have an account if you just register at Fidelity.

The nice thing with a Fidelity Watchlist if you can enter both Stock position and Option positions, as well as Cash positions so you can see a complete picture of your account value, real time price changes and other nice information. I end up with 2 Watchlists.

One watchlist has my own IRas and Individual accounts (4 accounts). With 50 line items, I include my stock position, options, Cash positions. I use dummy Money Market accounts to keep track of the 4 cash accounts.

The second watchlist has a Joint Trust Account that we have.

To trade in Fidelity you can use the Online Menus or use the Fidelity Active Trader Pro (ATP) program for more control and easier trading and control. The watcholist you create either on line or in ATP program is viewable and manageable online or in ATP.

Good luck with your trading.

Mario

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By: Daniel https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198470 Thu, 28 Feb 2019 09:11:32 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198470 Alan

How are you? I have started to read your Excel
File where you mention the stock you team already analyzed.

So based on this list I should do sales cover call ? I am right ?

Best Regard

Daniel

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By: Alan Ellman https://www.thebluecollarinvestor.com/treasury-bond-yields-and-the-stock-market/#comment-198424 Thu, 28 Feb 2019 02:08:37 +0000 https://www.thebluecollarinvestor.com/?p=17537#comment-198424 In reply to Mariog.

Thanks Mario. We inserted the correct image and the report now reads ETF report 2-27-19 REVA.

Alan

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