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Tuesday, March 23, 2010

New Trade

Hey everyone

The account on Monday purchased shares of Exact Sciences for $4.77. It then sold the July $5.00 call on Monday for $1.25 revenue. This was a trade that is longer than normal (four months) but the revenue from the call is much more than normal for a stock at this price. The stop for the stock is currently set up for the $3.30 range.

The account was able to find this trade using tools from Optionsxpress and Yahoo Finance.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions given to the reader. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. 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. The goal of the blog is to collaborate so that we all can accumulate wealth with the help of selling calls.

Monday, March 22, 2010

Aria Pharma trade finished

There was a trade that ended on last Friday. There will be more detail on the trade but here are some bullet points:
  • Bought ARIA stock at $2.23 in November
  • Sold the January $2.50 call for revenue
  • Stock closed below $2.50 when January call expired
  • Sold the March $2.50 call for revenue
  • Stock closed above $2.50 on March expiration, thereby assigning shares
  • Received a total profit of 10% from trade

Thursday, March 18, 2010

EXAS

The account is attempting to finalize its next trade. Research through Optionsxpress and Yahoo! Finance has shown that there is a trade available for Exact Science Corporation (symbol exas.)

The account has found an opportunity in buying shares next week and then selling the July $5.00 calls. The premium right now for the calls is around $1.00. The premium represents almost 20% of the current stock price. There will also be some appreciation value opportunity with the trade at the current price.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give out the rest of the details. 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. The goal of the blog is to collaborate so that we all can accumulate wealth.

current trade gets downgraded

The current trade was downgraded today. But it has had little effect on the stock and it still remains higher well above the strike price. Since the expiration date is tomorrow, it is the account's belief that the shares will be assigned.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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, March 16, 2010

Blog Changes

The following changes will be made to the blog:

- The symbol of the stock being currently will now be shown

current trade up after earnings

The stock is trading up after earnings were announced earlier this morning. The stock would have to lose 30% from its current price to get back down to the strike price.

earnings for current trade

So the company released their earnings this morning. They were in line with estimates but their revenue was below expectations.

The stock opened up lower by about 3% this morning. The stock would still have to fall 25% from its current price just to reach the strike price. So right now, the expectation is that the shares will still close on Friday above the strike price.

If there are any developments, the account will post them here.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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, March 12, 2010

New Capital Added

Hey

New capital has been added to the account. With the current trade in the money and presumed to be assigned next week, the added capital will allow the account to move up in share price for the next trade. This will continue to give the account added protection and remove more risk from the trades.

Thursday, March 11, 2010

one week left on current trade

Hey

The stock is currently trading at a level that would require it to fall 20% from its current price in order for it to fall below the strike price. The technicals are very strong with positive volume leading the way. The stock has traded at least twice the daily volume every day this week during the continued run up. Earnings are to be released next week.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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, March 5, 2010

current trade 2 weeks left

There are two weeks left until the call option on the current trade expires. Currently, the trade is still over 10% in the money.

Technically, the stock is holding up at the new level with good volume.

Fundamentally, the company had positive product news. But they have yet to announce their earnings. The account would feel a whole lot better if the company would announce when they are going to release earnings.

So, with ten trading days left, the account is researching new stocks to invest in. If the stock dips below the strike price, there will be a chance the account will pick up more shares sell more calls in future months.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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.

dilemma

Hey

In researching for the next trade, the account came to a dilemma. Does the account trade for the next month's results or sell longer term calls for the opportunity to make more money overall since the strike price is higher?

The account is researching MBI. The market is currently offering calls at $1.00 increments for the May calls and only $2.50 increments for the April calls. Because of this, there is an opportunity to sell a call in May, receive some revenue, and have a decent amount of appreciation gain with it if the stock reaches the strike price.

Right now selling the May call in MBI seems to be a good play. We'll see what the trade looks like in two weeks when the March options expire.

Wednesday, March 3, 2010

trading software Optionsxpress

Hey

So the account uses Optionsxpress for some of its screening tools. In the process, the account stumbled upon a platform they have that is dedicated to covered calls. It has been a real useful tool and has given the account insight into certain details like percentage gain if assigned among others. This has created a more focused list of stocks from which to choose.

A special thank you goes out to Optionsxpress. Your accessibility and continued software improvement has made the account's trading life much easier to understand.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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.

current trade in the money

Hey

The current trade is now over 12 percent over the strike price. With only 12 trading days left before expiration, the likelihood of share assignment is good.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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, March 2, 2010

current trade volume yesterday

The volume on the rise in price was almost 5 million shares. This, along with a strong move from the stock, is a bullish sign that helps the account believe the stock is in a bullish trend.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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.

news on current trade

There was some positive product news released yesterday. This news sent the company's stock up over 10% the strike price. With 14 trading days remaining, the probability that the shares will be assigned is high.

The account will continue to research stocks using tools from both Yahoo Finance and Optionsxpress for new trades.

- This information is not to be used as a recommendation to buy or sell. It is simply information (and sometimes opinions) given to the reader of this blog. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains occurred from trades that use its material.

- The account does not fully divulge all information on open trades. This is for protection of 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, etc.) 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.