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Wednesday, December 23, 2009

3 weeks to expiration

There are three weeks to expiration on the current trade. It is under the strike price. The technical indicators from Optionsxpress and Yahoo Finance for this stock look to be neutral at this point.


- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Capital Added

Capital has been added to the account.

Friday, December 11, 2009

5 weeks to go.....

The stock is back under the strike price; but still above the purchase price. This makes the the call out of the money. The premium of the call is shrinking since there is only time value involved. There are five weeks or 23 trading days left until expiration (January 18.)


- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Wednesday, December 9, 2009

new capital

New capital was added to the account on Monday.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Tuesday, December 8, 2009

trade in the money

The current trade has crossed to "In The Money" status. The company just received positive feedback from a government study on one of their products.

The expiration date for the trade is January 15, 2010. There will be two trading days off during that time (Dec 25 and Jan 1) that lessens the amount of trading days until expiration. Right now we are at 26 trading days left.

-As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Monday, December 7, 2009

ACAD trade

Acadia Pharmaceuticals showed up on the account's Optionsxpress screener after the account finished its trade with Human Genome Services Inc. back in July of 2009. The company showed the very same traits as the HGSI trade. So the account ended up buying 100 shares at $2.34 and then selling the September 2009 $2.50 calls for $0.55. After commissions, the revenue from the call was $40.00.

At first the stock went all the way up past $5.00 per share. But then the news of a drug trial did not go well. This sent the shares down around $2.00. The call expired worthless.

There was a re-evaluation of the stock to see if the account should sell or hold on to the stock and sell another call. The decision was made to keep the stock and sell the November $2.50 call for revenue of $5.00. This brought total revenue of the trade to $45.00.

This did not go well. The stock fell all the way to $1.40 before the call expired. The account eventually sold the stock after the call expired.

The total loss on the trade including commissions of 37%.

Trading Notes on the trade will be coming soon.

Thursday, December 3, 2009

sold correct call

Hey

So the account has finally corrected its mistake and sold the correct call for the stock. It is a January call that was out of the money when the account placed the trade. It just went into the money this afternoon. Profit information will follow in next post.

-As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

new trade mistake

Hey everyone

So the account made a big mistake in a new trade and sold the wrong call! So it was quickly decided that the call would be bought back limiting the loss.

The deal is that the account sold a call that was less than the price of the stock at the time of purchase. Fortunately the situation was correctly analyzed and a solution was immediately implemented.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Monday, November 23, 2009

first loss

Hey

The account has taken its first loss. The decision has been made to move forward and find a more profitable trade rather than wait for something positive to happen to the stock.

The account is premised on finding stocks to sell calls and not to invest into a company's stock. By selling, this continues the mission.

The full report on the stock will be written later this week.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Friday, November 20, 2009

final day and new capital

Hey everyone

Today is the last day for the November call the account sold. It will most certainly (barring shocking positive news) expire at the end of the day. The question for the account now is to keep the stock and find another call to sell within the stock or sell the stock and find another one with a greater opportunity to make a profit. The research is going on and will continue until a decision can be made. The account will keep the stock until another can be found. Research will be done using Optionsxpress, Yahoo Finance, and various news sites such as cnbc, and Bloomberg.

The account has also added new capital to the account. This should push up the prices available to trade.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. If you have any info regarding call selling, be sure to comment or send an email.

Friday, November 13, 2009

One week to go.....

Hey

The call will probably expire worthless next week. The stock is still below the strike price. Earnings for the company were released on Monday and showed that the shares are almost trading for their cash value. They beat the estimate by a penny. There is talk of a possible buyout from a product partner which could add some value for the shares. They will be waiting on test results from their joint product in the next couple of months.

The account might just sell the shares after expiration is over to move on to the next trade. It would involve taking a loss but would free the capital for the next trade. To be sure, there will not be any movement until another profitable trade has been found.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.

Monday, November 9, 2009

Less than 2 weeks left...new capital added

Hey

The account added more capital to the account this past weekend. If the account decides to sell the current stock, the combined amount will allow the account to be ready to get into a higher priced stock. This will allow the account to find stocks that have a higher premium and therefor increase the revenue.
The stock is still below the strike price. This should be an active week as the stock is supposed to release their quarterly earnings today after the bell. The main factor in this report is the amount of cash available for the company. The stock is actually lower than the cash value of the last quarterly report. Any amount with the same amount of cash will provide a bump in the stock price. The company also might discuss the products currently being tested by the government.
- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.

Friday, October 30, 2009

3 weeks to go......

Hey everyone

There are three weeks to go until the November call is up. It looks very likely that the stock will not reach the stock price. The stock right now is pressed to have an up day lately. Volume has been low. It is sitting in a sell range right now.

The future schedule holds that there will be a capital deposit towards the end of next week. There might be an opportunity to purchase another block of shares in this company when the call expires.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.

Friday, October 23, 2009

4 weeks and counting

The stock has once again come down very low. There is once again a chance that the stock hits the stop loss level and the account will sell.

The account has provided more capital to the account. It looks like we will be able to expand the trading by the beginning of next year.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.

Sunday, October 18, 2009

5 weeks to go.......

The stock stayed put this week. There were large block buys at the end of two of the trading days. I'm not sure how to interpret that. It could be shorties covering. It could also be buyers grabbing some shares expecting some news.

Friday, October 9, 2009

six weeks to go

hey

The stock rebounded about 10% this week on news of a continuation of a partnership deal in connection with a joint product. The stock is still below the strike price. Stop levels are being watched carefully.

There are still results pending on a product testing. Since the partnership is for the same product that is being tested, the announcement of the partnership allows for some optimism about the results of the tests being made. That is probably the reason for the rise in the stock this week.

Capital was also added to the account. If the trade lasts to expiration, it is projected that there will be three more times that capital will be added to the account before the next trade is made.

- As always, the account does not fully divulge information on companies that have open trades. This is to protect the trade. When the trade on a particular stock ends, the account will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade.

Monday, October 5, 2009

8 weeks and counting

Hey everyone

So the stock has fallen very close to its sell stop level. If it ends up closing below that level or takes a hit like the one it did a few weeks ago, the account will sell the stock, buy back the call, and take the loss. But there is a product review coming out in the next couple of weeks. I hope it does before the stock closes below the stop price.

Friday, September 25, 2009

New Capital added

Hey everyone

Happy Friday! I have added more capital to the account today.

Also, capital was added when the call premium was received.

- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Tuesday, September 22, 2009

Third Trade

Hey everyone

The account executed a trade with the same stock as the previous trade. The account sold the November calls against the stock it currently holds. The reasons for the trade are as follows:

- The revenue received from selling the call knocked down the cost of shares on the trade and increased the overall profit. This has created a situation where the overall cash holdings of the company currently are more than the cost basis for this trade. This provides a high level (not perfect) of protection for the trade.

- The cost of the trade was decreased since the action of purchasing new shares was not required

- Product development results are expected to be released before option expiration creating an opportunity for the stock to appreciate to and past the strike price

- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, September 18, 2009

Most recent trade

Hey

Below are the posts on the second and most recent trade.

The account purchased this stock at 2.35 and sold the September 2.50 call for .40 after commissions. As you will read in the posts, the stock shot up to past $5.00 but came down after a government product trial did not go the company's way. It is now sitting in the $2.00 range. The account will plan to look at what the November option price is before selling. The December option does hold some decent value. It would be better if we could squeeze out some value in the November time frame as the account continues to grow its capital base.


Trade 2 #1, Trade 2#2, Trade 2#3, Trade 2#4, Trade 2#5, Trade 2#6, Trade 2#7, Trade 2 #8, Trade 2#9

Thursday, September 17, 2009

same stock....new call

Hey everyone

The account has made the decision to keep the stock and sell another call. The stock stayed within profitable parameters. There are calls two months out that are currently profitable. The drop in the cost basis for the stock will now allow for a greater profit overall. The prospects of upcoming products has the account feeling the stock has upside potential.

Upcoming events for the call account:

- Which call was sold
- Description of previous trade
- upcoming capital infusion dates

- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, September 11, 2009

One week to expiration, more capital added

Hey everyone

The account just added capital to the account. This will help increase the number of trades that can be made in the future.

The current trade is likely to expire next Friday. That means the option will expire and the account will be left with the shares alone. Right now that is a good situation because the shares are trading in a position that still leaves the account with a profit even though it did not surpass the strike price. I am looking at the following month's options to sell. This will provide more income to the account.

- As always, I do not fully divulge information on companies that have trades open. This is to protect the trade. When the trade on a particular stock ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Wednesday, September 9, 2009

same stock, new option?

Hey

It looks like the option will expire worthless. There are seven trading days left and the stock is well under the strike price. But it is still a profitable trade if you include the call revenue. If the stock stays below the stop loss level, the account will probably sell more options on this stock after the current ones expire. The account has noticed some considerable time value in the coming month's options that keep the thought of stock appreciation in mind. This is not normally the case. Normally, if a stock falls like this one has, the time value on the stock's options dry up like a desert. But this stock hasn't. The trading activity for the next couple of week's will show where the stock is headed. It is definitely banging against some support levels trying to get through.

- As always, I do not fully divulge information on companies that have trades open. When the trade on a particular stock ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Saturday, September 5, 2009

A difference a day makes.....

Hey everyone

Well, the stock fell below the stock price on a bad government review of one of the company's products. There are two weeks left before expiration. There doesn't seem to be any more news scheduled for the company until then. So the stock is kind of in the hands of the major traders for now. The positive thing is that it did not fall as far as I thought it would and actually is still in profitable territory for the trade. There is a floor for the stock. This means that if the stock falls to this level, a sell order for the stock will be executed.

Some thought on what to do is ahead as there will some options coming up once expiration date comes. What is meant by that is there will be a choice of buying more shares of the company and selling more calls or selling the shares and looking for another company's stock to trade.

Now is a good reminder that the account is just getting started and that there will be trades that are not profitable. Normally the best thing to do in that manner is to just sell the trade and find another.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Monday, August 31, 2009

3 weeks to go....

Hey



Three weeks to go on the current trade. It is still well above the strike price. There has been no news on the company. Trading volume has been normal. So until we see some news from the company or a competitor, or there is a market wide shift down, the expectation that the option will get called is getting higher by the day. I believe there are thirteen trading days left until expiration.

Monday, August 24, 2009

4 weeks to go.....

Hey everyone

The stock is still well above the strike price with less than 4 weeks to go. There hasn't been any news on the stock. So this just keeps the status quo right now.

Right now Fooled by Randomness comes to mind. I am reminded that there is always a black swan out there and the trading we do is really just a guess on probability.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, August 14, 2009

5 Weeks to go.....

No news here. There is 5 weeks to go and the stock is well over the stock price. The time value in the call is almost gone. This I assume means that the traders have left this call option completely as they expect the stock to finish above the strike price.

Wednesday, August 5, 2009

HGSI blog posts

Here are all the posts to the HGSI trade. Let me know what you think.



HGSI 1, HGSI 2, HGSI 3, HGSI 4, HGSI 5, HGSI 6, HGSI 7, HGSI 8, HGSI 9

Thursday, July 30, 2009

7 weeks out and the option on the move...

Hey


There are 31 trading days left and the stock is still well above the strike price. The interesting thing is that the option's time value of the option is actually on the decline and actually below what I paid for it even though the stock has rocketed past the strike price of the stock. That is not to say that the option itself is below, just the time value of the option is. This didn't happen with the previous trade (HGSI) until late in the strike month. But the time value was higher when this trade was originated so maybe this is the normal level.

There will be new product info in the next two months or so I have read on other blogs/posts. The chart is a little unpredictable give the jump in the last week. But it looks like the trade is still in very good shape.

This type of trade is what the account is looking for. If a stock can be found with an unusually large time value attached to its options, the account will look to exploit that. Stocks like this not only provide an indication of bullish sentiment, but they also provide the seller with an added risk premium not usually seen in other stocks. This added premium received is where the account will create its revenue and quicken its size overall.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, July 24, 2009

profit range reached

Hey

The second trade has reached past the strike price. There are eight weeks until expiration or assignment (September 18) so there is still plenty of time for the stock price to go back below the strike price. The option price is still carrying a high time value.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Monday, July 20, 2009

New trade

Hey


There has been a new trade this week (Monday.) A company was found that had a September call within range that allows a profit of 11% if the shares get assigned and almost 20% if the shares don't reach the strike price and don't get assigned. The chart shows a bullish trend. The options activity is also bullish. The company has some new products coming in the next couple of months that should keep a bullish sentiment throughout the trade. Armed with this information, it was decided to buy the shares and sell calls against the shares.


The one thing I have noticed with the last trade of HGSI (links below) and this one is that there has yet to be a trade that can end in one month and still guarantee a profit. This is due to capital levels of the account. It will take the ability to buy more contracts to handle the effects of the trading costs.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.


HGSI 1, HGSI 2, HGSI 3, HGSI 4, HGSI 5, HGSI 6, HGSI 7, HGSI 8, HGSI 9

chart of hgsi (forget today's activity)

Here is the chart for HGSI. Not counting today's trade (wowm by the way,) the trade stayed consistent. Now it is on to the next trade.

This chart was provided by Optionsxpress. Thanks to them, Yahoo!, Bloomberg, CNBC, and other news sources.

Thursday, July 16, 2009

Payday!!!!

Hey everyone



The stock ended Friday above the strike price and therefor the shares have been assigned.



HGSI - Human Growth Sciences Inc.



I bought the stock at $1.99 (not telling the number of shares) and sold the July 2.50 calls (not telling how many contracts) for $0.25. Currently, the stock is over $3.50. This means the shares will be assigned to whomever purchased the calls. I did write calls on all the shares I bought.

Saturday, July 11, 2009

One Week to go....

Hey



The stock is 3 cents over the call price so anything is possible. There was some positive news on one of the company's products. But it didn't move the stock at all. There is supposed to be some big news regarding another product of the company July 20th. There was not any action analyst wise. Technically, the stock postitioned itself to be a nail biter for all option holders/sellers. The price of the call has 10 - 15 cents of time value left which is still fairly high for one week left before expiration.



The expectation is that the time value will disappear by Tuesday. The call price will track the stock price if the stock is above the call strike price.



As of right now, if the stock stays above the strike price, the shares will be assigned and the profit on the trade will be 15%. If the stock falls below the strike price, I will plan to hold onto the stock and sell the August call, which are trading at 75 - 90 cents.



The experience this trade has given will help find the next trade. There will be a much larger blog after the trade is finished next week.



Talk to you next week!

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, July 3, 2009

2 weeks to go...

Well, this week the time value of the option disappeared in a day. The reason for this is due to a press release saying a product test result will not be released until after the expiration date.

The stock is still above the the call price and now there are ten trading days until expiration. It seems to be pushing up against some resistence. The fact that news on the product test won't come out until later provides an indication that the stock could come down a bit while waiting. But the option time value in the price has reached a level that is below the time value when the call was purchased.

The Market Makers will probably try to take the stock down before expiration. They were not able to do it for June. But we'll see for this month.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Friday, June 26, 2009

3 weeks to profit

Hey everyone


The call will expire in three weeks. There are 15 trading days left. The price of the stock has moved past and is now above the call price. As long as the price of the stock is higher than the call price, the call will be exercised at expiration. This will allow the program to take the funds from the trade along with the continued growing capital to form another trade with a larger pool of opportunities.

Technically, the chart shows that the stock is above the 20 and the 50 day moving averages as they are both increasing. The chart also shows the stock at a resistence level.

There is to be some scheduled news in regards to the company's products during the month of July. What is not known is whether or not the news will come before or after expiration day (the 17th.) So there is still some risk involved in this trade if news on products is bad.


The option itself is still priced above the norm. The stock would have to move over 10% just to catch up to the option price today to break even. The expectation for the relationship between the stock and the option is that they would be closer intertwined than they are now. The curve of the slope has not increased as is the norm. This action provides a clear bullish signal that the stock will end in the money.


Overall, so far so good. As this is the program's first trade, it will be nice to get the details to get some feedback. Yet, the hope is that this is only one trade in a long prosperous trading career.

-As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Tuesday, June 16, 2009

6/15-6/19 info

The stock had fallen below the strike price on Wednesday, but at the end of trading on Thursday the stock was pushed past the strike price and stayed over on Friday. The crazy thing is that this was done without any news for the company.

Now the July options get set for current month movements. The stock is floating around the strike price. There are 19 trading days (4 weeks minus July 3) left until expiration. Currently the option is priced almost double what I sold it for indicating a positive move in the future. But because this is the current month, time value will diminish at an accelerating rate. Currently the stock has moved 25% up and the option has doubled. The option price move has only been 60 % of the upside move for the stock price.


But because of the option activity, and the expected news regarding the company's products this month, the option could be in the realm of guaranteed assignment at the end.

This would allow the profit from the stock to be added to the premium received from the option to be added to the continued collected capital for the accout. This puts the account in a much more favorable position to choose from a greater pool of stocks and the possible use of an added strategy. That strategy is selling in the money calls at a premium. But we will see.

As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. It will be detailed with charts and progress reports. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Wednesday, June 10, 2009

33% of the way there

Hey



Thirty Three percent of the time involved in the current trade is gone. There are now only 25 days remaining until the call expires. The stock continues to be over the strike price. There has been some more positive press in regards to the company's products which should keep the stock at a high level.

There was an analyst that moved the company's recommendation from hold to sell during the week. It happened after the run up earlier in the week. The analyst seemed motivated to reiterate his thinking on the stock because it has started to get away from him. The crazy thing about this recommendation is that the analyst feels that if a certain product test fails, the stock could lose about 60% from today's levels. The analyst also writes that if the test goes well, the stock could move upside of 350%.

The option currently has a time value ratio (time value/option price) of 57%. It was 100% when the option was sold.

Because the stock is above the strike price, the call could get called out. The fact that it could happen at any time is neat. It's almost like Christmas waiting for an email from Optionsxpress telling me that the call has been exercised.



As always, I do not fully divulge information on open trades. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Tuesday, June 9, 2009

reading materials

Hey

I came across a book at Barnes and Noble named Getting Rich with Options by Lee Lowell that has a chapter on call selling. It gives real world examples as to how selling options can provide an extra source of revenue for a stock holder. I recommend heading to your library or book store and checking this book out. I can't say I have a full grasp of the rest of the book's strategies yet, but it normally takes a few times to read before I get all the info.

If you have any books or reading materials that would assist in the development of this subject, feel free to post.

As always, I do not fully divulge information on open trades until they are done. When the trade ends, I will give out the rest of the details (stock name, price purchased, call purchased, news on company/ETF, chart info) that sort of thing. Please feel free to ask questions and I will answer them the best I can without endangering the trade.

Monday, June 8, 2009