Comments on: What Covered Call Writing Has Meant To Me: A Financial Advisor’s Perspective by Guest Author Kevin Crowe https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/ Learn how to invest by selling stock options. Sat, 29 Dec 2018 12:39:46 +0000 hourly 1 By: Jay https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190872 Fri, 28 Dec 2018 21:41:12 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190872 In reply to Jay.

Hoyt, I feel your pain, 2018 was my worst year in a decade.I am a bit better off than the S&P because I had some cash positions, sold some options and bought some as well but it is not exactly a nourishing feeling to see the ‘ol nest egg go down.

High hopes for a better 2019 despite all the odds and cards stacked against it :)! – Jay

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By: Hoyt T https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190868 Fri, 28 Dec 2018 20:18:16 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190868 To everyone in the BCI community Have a Happy and Prosperous New Year.
May all your shorts expire barely out of the money and all your longs close deep in the money.

Hoyt

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By: Hoyt T https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190867 Fri, 28 Dec 2018 20:15:02 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190867 In reply to Jay.

Hey Jay,

Your comment reminds me of something someone, Roger McNamee, I think, “You should rent stocks, not own them”.
By that he meant that there was a season for every good stock. After it out performs the S&P for sometime, sometimes years, it can become dead money, if not a loser.
We seen plenty of those in tech: CSCO INTC, DELL etc. Speaking of DELL it resumed trading today on the NYSE.
Of course some stocks are for trading only. But usually we can do better with options on those stocks. Better not to rent or buy.
Hope you are doing well in this market.
Looks like we got a Santa Claus rally after all. Too late to pull me out of what has been my worst month ever.
Have a Happy and Prosperous New Year.

Hoyt

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By: Jay https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190833 Fri, 28 Dec 2018 14:39:43 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190833 In reply to Roni.

Thanks Roni,

I have not followed SWKS in some time but it used to be a “darling stock” a lot of people liked. I guess fads and fashions come and go :)? – Jay

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By: Roni https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190746 Thu, 27 Dec 2018 19:53:27 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190746 In reply to Jay.

Hi Jay,

If you look at SWKS chart, you can see it is dropping steadily since June 2018.
I would swallow my losses and get my money out while it is still possible.

Roni

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By: Alan Ellman https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190628 Thu, 27 Dec 2018 12:03:26 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190628 In reply to Daniel.

Daniel,

We can avoid exercise (99.9% of the time) by buying back the short calls prior to 4 PM on expiration Friday. The cost-to-close will be the amount the strike is in-the-money (intrinsic value) plus some time value component. The closer to expiration we are, the lower the time value amount due to Theta (time value erosion).

As of pre-market on Thursday, the $1475 strike is out-of-the-money but certainly can move in-the-money by expiration tomorrow. Should that occur and should you decide to roll the option, you must decide on both a strike and expiration date to replace the current short call. The “What Now” tab of the Ellman Calculator will be extremely useful in this regard. Rolling out-and-up is more bullish than simply rolling out.

Exit strategy execution (including rolling strategies) is critical to our long-term success and is a major part of all my books and DVD programs (exit strategy sections).

Alan

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By: Daniel https://www.thebluecollarinvestor.com/what-covered-call-writing-has-meant-to-me-a-financial-advisors-perspective-by-guest-author-kevin-crowe-discount-coupon-expiring/#comment-190624 Thu, 27 Dec 2018 06:11:47 +0000 https://www.thebluecollarinvestor.com/?p=17303#comment-190624 Alan

How are you? I am writing you this message since tomorrow I might create a trade to roll a covered call option in case the stock price keeps going up.

This is my situation:

I created an order on 12/24/2018 for:

Order Type: Sold Short
Security: AMZN Dec 28’18 $ 1475 Call
Quantity: 13
Price: 6
Commission: 11.45
Amount: 7,788.22

So now the stock price is above the strike point and I do not want to sale the 13 contract.

Could you help me to design the rolling covered strategy for tomorrow/

And if you have more videos, calculator and examples about how to do it I will highly appreciate your help.

Thanks a lot

Daniel

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