Just a few trading days ago I wrote about the upcoming 10% correction for the DJIA. We got that this week and then a few extra points past it to solidify the point and rebounded as I said we would. The remaining question is if the bounce was only a dead cat bounce. That’s the…
Baring it all on BA
I’m getting naked on my BA calls. I own 100 shares of Boeing (BA) already and have sold one covered call on it. A couple of minutes ago, when BA was trading at 86.96 I sold another call, this one is considered naked since I have no shares to be called away if BA rebounds. …
Saving Money on Car Service
Since my wife starts her new job within two weeks we are both trying to get all the little things done in our lives that take away from the focus and attention she’ll have to devote to that for a while. I’m following suit in the hopes that I’ll have a new job soon too….
Answering Reader’s Questions
I exchange emails with readers on a fairly regular basis and occasionally try to move the conversation to a blog post. One of the newer readers and commenters, Josh, sent me a few good questions that made me think. So, I figured I’d try to answer the best I could in front of everyone since others might be…
All Stocks Sold or Covered with Calls: DOX, GM, MRO, CAT, MOT
I am caught up once again. I dealt with all of my problem children within the first hour of trading this morning. I sold all of my DOX shares at 32.47. I won’t be surprised if it rebounds, but it was below where the chart said it should be and the premiums weren’t worth working…
To Cover or Not to Cover with Call Options
Have you ever been to a fun funeral? I went to one in college that was fun. The mother of an ex-girlfriend of mine died and I drove from Athens, GA to Charlotte, NC with three of her girl friends. I hadn’t hung out with a lot of them since we broke up and it…
DJIA ($INDU) Chart November 16, 2007
I charted the weekly price action for the Dow Jones Industrial Average ($INDU) today. The past few days highlighted in the blue square look like a ping-pong ball bouncing off the table and being met with a firm paddle on the up side. The key take away from last week’s price action is that the DJIA…
CRM – Sold Naked Puts
Salesforce.com (CRM) beat earnings yesterday and shot up more than 8% today. I took the opportunity to sell naked puts on it. While CRM was trading at 55.12, I sold two January 45 naked puts (CRMMI) and received $288.50 after commissions. Implied volatility is over 60 for this strike which allowed me to sell at a…
Option Expiration Friday
I have a few naked puts (DOX, CAT, MOT, GM) that will be assigned to me with this November option expiration today. I’ve looked at all of them and they all have similar charts that show they are near the bottom of their trading channels. If this over sold condition snaps and stocks have another big…