Comments on: Types of Customer Orders plus Update on BCSI https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/ Learn how to invest by selling stock options. Thu, 05 Jan 2012 20:25:39 +0000 hourly 1 By: admin https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1339 Sun, 26 Sep 2010 16:36:37 +0000 /blog/?p=2691#comment-1339 Dirk,

I haven’t forgotten about your suggestion. There is a way to do this and it’s on my webmaster’s to-do list. Lately I have given him a multitude of projects which I will be announcing in the near future.

Thanks for the idea.

Alan

]]>
By: Dirk https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1338 Sun, 26 Sep 2010 15:55:31 +0000 /blog/?p=2691#comment-1338 Hi Don,
To the portfolio manager:
You probably know how to access your account(s) from inside ATP.
This brings you to a huge account manager with 7 tabs and some of them have special check-marks for different details you would like to see.
Besides seeing with one click your current account balances and “buying power” in cash, and margin there is one nice option for us cc writers.
When you click on the “Profit and Loss” tab and inside this tab check the “Historical Detail”, you have an up-to-the second overview over your stocks and the related covered calls you sold.
Among other things it shows you the quantity and the price you sold a single option/share for and two columns further the real time price.

This is particularly nice in regards to our exit strategies, because you see with one glance, if the option price comes down and close to our 20% respectively to our 10% rule.

In the “Profit/Loss” column it shows the profit of an appreciated option in red and minus.
That looks puzzling at first, but when you think about it, it makes sense.
The red number is the Dollar amount of the appreciation of that particular option after you sold it.
This is the painful number. . .:>) because it shows us what we could have earned, if we would have waited.
But we learned here “never look back” and “be happy with what you made”.

If this number turns green the options is now worth less than you sold it for and has to be watched more carefully in regards to an exit strategy in case it and the underlying stock deteriorates further.
All this does unfortunately not account for the intrinsic value which we have to deduct first when we calculate for the 20% or 10% rule exit.

But there is a little detour to that.
You can export with on click the whole window to an excel sheet and just put in the intrinsic value by hand and with the proper formula in a column, it shows you immediately how close you are to the a particular exit rule.

I would have liked to show a screen cutout here for everyone, but this blog comments are not set up for attachments yet.
I asked Alan about that and he promised to talk to his webmaster.
Then we could all share more ideas. . .
(Hey Alan, I am poking you. . .:>)

Cheers
Dirk

]]>
By: Don_B https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1337 Sat, 25 Sep 2010 23:54:43 +0000 /blog/?p=2691#comment-1337 Dirk –

What did you mean, in #56, by their having “a portfolio manager”. Am I missing something?

Don B.

]]>
By: Don_B https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1336 Sat, 25 Sep 2010 23:51:48 +0000 /blog/?p=2691#comment-1336 Dirk (#56) & All –

I too use Fidelity and separately their Active Trader Pro platform. Both are fabulous. And the co. telephone service beats most everybody.
If you do have a question, they either have the answer or get you to someone who does have the answer, with almost no waiting. What I wish to add are 1) One can use much of their research information just by going to Fidelity.com. without having an account, and 2) One cannot use the ATP without actually having an account there and actually qualifying with investment activity.

Using their online site is easy, and their fills are just what one might expect them to be. No, I am not on their payroll. 🙂

Don B

]]>
By: Mark https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1335 Sat, 25 Sep 2010 22:07:13 +0000 /blog/?p=2691#comment-1335 Owen,
Thanks for the reply, sorry it took so long to answer I have been at Habitat for Humanity today putting the roof on a house we are building.
I see now what you are saying. I was just looking at the 10% or 20% rule not looking at it this way. Last night after Alan’s reply I put all my positions on a spread sheet showing original expected return, return if I close now, and what is left. It was very enlightening.
Since these where all in the money calls when I sold them I assume that contributed to the situation. I am thinking of rolling them up as that would give me a good return for the remainder of the period however Alan had made a comment to be carefull doing this as profit taking might take place causing them to drop. My thinking at the moment is to review these positions vs what might be on this weeks list.

In any event, thanks to you and Alan for a new way to look at things. This is what is so exciting about Alan’s system. I like the ability to be active and involved in managing my investments instead of just looking at the statement from the money manager. And doing much better than the “professional” too.

Mark

]]>
By: Dirk https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1334 Sat, 25 Sep 2010 18:33:47 +0000 /blog/?p=2691#comment-1334 Thanks Owen,
I hesitated to comment on the 200% because I did not have wanted to ruin your Saturday. :>)

I always include the commissions and charges into my trading calculations.
First I do all the calculations without and deduct them later as a lump sum.
That makes it easier for me.
I use Fidelity and the charge me a flat fee of $7.95 per trade, no matter what, plus S.75 per contract.
I am happy with that.
I use their Active Trader Pro platform and this a terrific tool for me, with news about the stocks in my watchlist or my portfolio popping up, lots of research options, a portfolio manager etc.
There might be other/better systems, but I am used to this one and so far it serves me well.

Cheers
Dirk

]]>
By: owen https://www.thebluecollarinvestor.com/types-of-customer-orders-plus-update-on-bcsi/#comment-1333 Sat, 25 Sep 2010 18:14:34 +0000 /blog/?p=2691#comment-1333 and, Dirk, two things. First, yes I do realize that my penny example is only a 100% return. Second, in my last paragraph I mention a $9 trading charge. If you are paying much more than that you should consider a different broker. TD Ameritrade charges $9.99 + $0.75 per contract. OptionsExpress $14.95. I understand that both directions will double that figure, but, as I said, include the trading costs in yur calculation for the trades.

]]>