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Sunday, October 31, 2010

EDMC trade 3 weeks left

The trade with Education Management Corporation is going well. The call bid time value has fallen over 50% since the call was sold. The company will be announcing their earnings this week. This should create some volatility in the stock. The account noticed that the November $12.50 call has a value of $1.00. This is a bullish sign as the contract will end in three weeks and this strike price is still out of the money.

The stock closed at $12.00. The stock will have to fall 16% from this price to get below the strike price of $10.00.

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

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- 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. Please pass the blog address to others that might find some value from it.

Wednesday, October 27, 2010

Call Selling Site Born to Sell Found

Hey

The account has found Born To Sell, a web site designed around selling calls. It looks like they have a top level software program. It does cost money to subscribe. There is a free trial available. It is strongly recommended that you head to the web site and trying out the free trial.

If you are familiar with the site, post your comments about it here.

Tuesday, October 26, 2010

Dec/Jan watch list started

Hey

The account has started a watch list for December and January. The companies are below. The account currently has no relationship with any of these companies.

Company Name Symbol

Rare Element Resources REE

H & R Block HRB

Radian Group RDN

Solar Fun Power Holdings SOLF

Power One PWER

Saturday, October 23, 2010

EDMC Trade

Last Monday, the account purchased shares of Education Management Corporation and sold $10.00 calls against those shares.

EDMC shares were purchased for $9.96. The stock closed Friday's trading at $11.02.

The account sold the November 10 call. The time value of the bid on the call has shrunk from $0.90 to $0.50.

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

- The account does not fully divulge all information (the size of shares bought and calls sold) on open trades. This is for protection of the trade. When the trade on a particular stock ends, the account will give the size information out. Please feel free to ask questions and the account will answer them the best way possible can without endangering the trade. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- 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. Please pass the blog address to others that might find some value from it.

Wednesday, October 20, 2010

Call Time Value vanishing

The time value of the EDMC $10.00 call bid that the account sold is now down to $0.74. That is almost a 20% drop in three days of trading. Only 22 trading days remain!

Implied Volatility for EDMC

The Implied volatility for the $10.00 November call is currently at 85. That is a high level of volatility and is one of the reasons why the account chose this stock to make the trade.

EDMC being Investigated

Bloomberg is reporting that the Florida AG is starting an investigation (story below) into the dealings of the for profit colleges and institutions including Education Management Corporation. The stock opened the day flat.

Florida AG Investigation

Tuesday, October 19, 2010

EDMC trade now In The Money

The current trade in Education Management Corp. is now in the money. The stock closed today at $10.14 today.

The call value is still at $1.00. There are 31 days and 23 trading days left until expiration.

- This information is not to be used as a recommendation to buy or sell. It is simply information and opinions. Before investing, please consult a financial professional. This blog takes no responsibility for any losses or gains that occur from trades using 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. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- 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. Please pass the blog address to others that might find some value from it.

Monday, October 18, 2010

New Trade

The account has purchased shares of Education Management Corporation, symbol EDMC. The price paid for the shares was $9.95 before commissions.

The account also sold the Nov 2010 call for a price of $0.90 before commissions. The expiration date of the option is November 19, 2010.

More details will follow.

- 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 that occur from trades using 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. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- 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. Please pass the blog address to others that might find some value from it.

Saturday, October 16, 2010

Exas trade closed out (PROFIT)

Success!!!!

The account's exas trade was settled yesterday at the close of trading. The option expired and the stock was sold. The stock closed above the $5.oo strike price.

The account had an average cost after commissions (both buy and sell) of $4.58. The shares were sold for $5.00. There was a stock price appreciation profit of $0.42 per share. That is a 9.17% profit over a course of seven months. The call revenue generated another $0.58 per share. That is a 12.66% profit on its own over the seven months. The total profit amount of $1.00 per share profit after commissions represents a profit margin of 21.83% over a 7 month time frame.

Thanks to Optionsxpress and Yahoo! Finance for the tools to analyze and execute this trade.

Time to find the next trade!

- 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 that occur from trades using 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. THE ACCOUNT WILL NOT MISLEAD READERS TO CREATE A GAIN ON ITS TRADES!

- 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. Please pass the blog address to others that might find some value from it.

Monday, October 11, 2010

Nov/Dec trade opportunities

In research this weekend, the account found these companies for a possible trade. The account will probably will be able to make its next trade next week. All of these companies had call values and price appreciation levels that allows a trade to have a 10+ percentage gain.

Do you know of any similar stocks that would be good for a call sell?



MGIC Investment Corp - symbol MTG

Take Two - Symbol TTWO

Hertz - Symbol HTZ

JA Solar - JASO

Fuqi International - Symbol FUQI

A123 - Symbol AONE

Sequenom - Symbol SQNM

Delcath Systems - Symbol DCTH

Suntech Power - Symbol STP

Saturday, October 9, 2010

One week left on exas trade

There is one more week until the current exas trade ends.
The stock did move higher. It closed the week at $8.28. The call time value is still zero. The call bid price is currently $3.25. There were a couple of news stories from Yahoo! Finance below.

Motley Fool - Insider Buys propel stocks

Business Wire - Announcement of Earnings and Validation results

Wednesday, October 6, 2010

6 trading days left, stock at next level

The stock is currently at $7.50. This is important because there are traders that will probably keep exas stock at or around this level since there is an option strike price at $7.50. That raises the possibility that the $5.00 call will end the October options cycle in the money.

Saturday, October 2, 2010

2 Weeks left on EXAS

There are 2 weeks left on the trade.

The stock finished the week priced at $7.09. It reached an all-time high on Thursday of $7.40.

The call is still priced at the stock price minus the strike price with no time value left.

The following Exact Sciences news was found on Yahoo! Finance:

Reuters - Blood test

Investopedia - RX companies

TheStreet.com - Calendar