Mental note: We need to be paying attention next Fed meeting and be ready to BUY!
Got that right SherriT
So what do we think is the best "FED" watcher site?... Anyone know of sites that talk about the FED talks BEFORE a ruling comes out?. After the fact is a day late IMO ~
In pre-market the cubes haven't ran up in price, which tells me everyone is holding to see if there will be a selloff or a continued climb.
We are in a pullback, the market is weak, let's see just how much gas this news [Fed stood pat for the sixth straight session, leaving rates at 5.25%] gives the market.
resist. 44.69 hit 4 times resist. 44.42 hit 2 times supp 44.21 hit 2 times
We are right at another resist., point this morning so there should be a little tug of war battle to watch.
I was expecting the cubes to push past that last resist., (the one hit 17 times) but the FED news really rallied that, and now we'll wait for the retesting of the area and see how much market strength there really is.
The market could be getting "set-up" for an ultimate head fake. I say that because the market was burning out, the only strength came from the FED's news...
So after the next two days we should see our "true" market direction.
posted
Yeah, it looks like it might just stall here. The full stoch is close to crossing and then we should get a nice dive I hope. I'm glad its holding here...that's a good sign!
IP: Logged |
Looks like we have an accumulation flatline. I hope this signals the top. Everything is looking pretty good now. The full stoch is about to cross and the money flow is still negative.
It needs to fall a bunch for me to get back green, but I think we'll be headed in the right direction for awhile.
IP: Logged |
posted
If you bought around the same time I did (and I think you did), when we were in the $42 and change range, we were making money....it didn't take that long to get there either. Heck just the other day in the run, I think mine "lost" half of its value...
Famous last words: "It'll go back up"
-------------------- Study before you buy, Sell before you think about it....
IP: Logged |
posted
Monday and Tuesday could be really nice for our portfolios if this drops just a tad more....I'm anxious to see the change just being in the money on another one....
Have a great weekend all!
-------------------- Study before you buy, Sell before you think about it....
IP: Logged |
posted
Well, the accum/dist has finally turned downward, the full sto has also finally crossed and started down. CMF still negative....this should be a good run for our puts. I sure hope so...I need it!
IP: Logged |
Well let's sit back and watch as Stochastic's do what they do.... "reset from overbought to oversold!" LOL
You know for "quick" option flips buying when Stochastic is LOW and PUT's when high.... -well look at the indicators in the link above, think you'll see what I mean Stochastic RSI is right on the money!!
I'm been trying to find out what is the "best way" to play options, at the link above I think is the key... Buying 6-9 month options and writing next month covered CALLS against them giving yourself income also!
There are some "set-ups" the big Option players use and I'm slowly getting them!!!
I have several "plays" that I'll be posting here soon after some more reading and testing, but the Gust of it is owning a longer term option and selling shorter term contracts against it, since 90% of contracts expire worthless, -you would keep that money...
Buying a PUT or CALL is only HALF the game here!! IMO -Like I said spend some time at that site!
Have a good day Board! Enjoy the negative Stochastic cross!!! BOOYAH!!
posted
Thanks Chart for another great chart. I've got them all book-marked and keep going back to them!
It looks like you're talking calendar spreads, not actual covered calls. If done right (like most stuff in the market), you should be able to rake in some good cash.
I tried a free trial back about 2 years ago with an internet company that would email you every day calendar spreads. They used some fancy software to figure out the undervalued options and sent them to their subscribers with pretty direct instructions. I can't remember the name, but I'm sure there's more than just that one out there. PowerOptions also has some stuff like that I think (www.poweropt.com).
IP: Logged |
quote:Originally posted by milliam: Thanks Chart for another great chart. I've got them all book-marked and keep going back to them!
It looks like you're talking calendar spreads, not actual covered calls. If done right (like most stuff in the market), you should be able to rake in some good cash.
I tried a free trial back about 2 years ago with an internet company that would email you every day calendar spreads. They used some fancy software to figure out the undervalued options and sent them to their subscribers with pretty direct instructions. I can't remember the name, but I'm sure there's more than just that one out there. PowerOptions also has some stuff like that I think (www.poweropt.com).
Not a calendar spread... With this one you sell next month covered Calls (as many as you own through your 6-9 month option) then when they expire, write more for the following month and so on...
You own a 6-9 month Call so the Calls you sell will be covered, not naked, -which requires a margin and is RISKY.
It is said that 90% of Covered Calls expire worthless! So your chances are 9 to 1 that you will keep everything you sell...
In doing this you WANT the stock to stay FLAT and NOT go up or down...
I'll have to write it all out, it's really rather simple
Now let's TANK into the $43 again!!
Boy, can you imagine how we would've tanked if the FED had RAISED those rates!! WOW!
posted
I have not been able to make covered calls work. One, you tie down serious $$ by owning stocks. And in order to recv decent premium you have to buy stocks that have some push in them. And by attaching it to a covered call, someone else pulls the string. I often miss the big move up when the stock went hot because the gain is capped by the option. Whats worst, if the big stock gain is right now but opt expires in 1-2 month, I can't cash it on the gain. In a month, some negative news on the stock or general mkt pull back, the gain evaporates.
Lets take the otherside, stocks moved down, you have a loss on your long stocks plus you have to buy back the option, which incidently held firm because its got time value going for it. The tiny prem$ you pulled seemed small compare to the stock loss.
Im all ears if there is some other ways to make this works. So far I don't favor this strategy.
IP: Logged |
posted
I think Chart is talking about selling calls that are covered by owning longer dated calls. I've always heard this called a calendar spread myself. A true covered call sell is like JLo is talking about....you actually own the stock you are selling the call on.
By either name, I think Chart's plan would be much better as far as profit and risk. JLo brings up some interesting points though.
It would be great if we could paper trade one here on the board and see what happens.
IP: Logged |
Millian, Yep, a slightly positive Money Flow, Don't think it will effect the Stochastic's negative cross powered by the HIGH Volume!
-remember volume is the fuel! -works going up or down
We closed our gap at about 1 PM also...
Res is at $44.03 Supp at $43.57 (hit 18 times) and $42.93 (hit 4 times)
A 2 week 60 min chart is showing a sloppy DEcending triangle! BOYAAH!
Notice the big gap in support prices above, we may see a BIG move to the negative here again finally
We have volume selling off, and now if the CMoney Flow dries up..... -Look out!!
JLo... Excellent points! --I guess you do NOT have to BUY the shares to have them covered, but you have to own a longer term option. Hence Millian's "calendar spread." -or buying a LEAP (a year or more out Option).
But this one is different because they figured out that the shorter term Option's (6-9 month) yield more profit.
So it's like a calendar spread, only "tweaked." So yes Millian, you are kind of right big guy!
I will be putting up all these "plays" when I get answers back from all the questions I emailed. I think you'll find them very interesting!
A simple 3% a month from writing covered CALLS will give you and extra 40% a year!!
5% is closer to 90% a year!!! [5% of that new total every month]
-and that's doing what we are doing now, only adding selling covered CALLS to...
So we could really clean house here!!
Now let's hope we breach that $43.57 mark today! It's been hit 18 times so if we can close below that we might well see a huge move to the downside coming!!
posted
Hi to all, I have been reading this forum and decided to sign up so that I could post. I must say, you are some very smart individuals in here. I am just starting out in learning stocks and options. Chart walker really seems to have a grasp on things. I am hoping to learn more from you all. Chart walker, are you a professional trader? I am impressed with your knowledge.
IP: Logged |
posted
Thank you Jenna, I am looking forward to making some money! So Chart walker is the one that is teaching you all? Is he a broker or self taught? I probably won't have much to contribute to the board so I'll just sit back for a while, follow along and ask questions as we go.
IP: Logged |
posted
No, "Chart" is not a professional trader...he is one of the guys. As far as technical analysis, his name is right....I have been in stock plays where he calls the highs and lows right on the money. I am just starting to learn about options myself, and I would highly recommend a couple of good books...I was already reading them when Chart started this thread, so it has helped me understand things TREMENDOUSLY!
Jenna? I don't think Options are complicated really...there are a couple of extra things to learn instead of just the underlying stock, but if you can read charts, it is almost like reading a book IMHO.
-------------------- Study before you buy, Sell before you think about it....
IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Wink]](wink.gif)
![[Smile]](smile.gif)
![[Big Grin]](biggrin.gif)
