How 'bout that stock market?

[steveny]

steveny: thanks for the quick reply. Is there a specific stock type that is better to write CC's on ? Do you focus on high earnings growth, low debt etc ? I know an uptrend or sideways is preferable as well but when the options expire 4+ weeks out , you really don't know what the trend will be doing then. Do you want high volatility , so the prems are higher ? I'm looking for some conservative, low stress income in my semi-retirement years.(vs day trading)

BIG FAT PREMIUMS is what I look for. They are practically giving money away with the aapl options. I don't sell options that far out but I do like to buy LEAPS if they are cheap.

I try to get back to everyone as soon as possible but I get lots of pm's. Some people get impatient. I am behind on my pm's at this point. I was returning some last night at 3am. Got a snotty reply from someone who didn't get a reply quick enough. I am pretty upset about that. You know I spend a lot of time on the pm's and on the phone with people and I get a lot of positive responses and some great information and tips. I just can't believe someone thinks I ignored them. That really upsets me. :frown:

 

[JadeFox]

Steveny,

I wouldn't worry about that person too much. I think I pmed you a long time ago thanking you for sharing your views on RE and stocks. Though you never got back to me, I didn't mind as I wasn't looking to get a response.

You and everyone else here are doing a good job of educating others. I read this thread all the time to consolidate the new info I'm learning.

Wallstreet survivor = paper education
This thread = real world education

Cheers,
Fox

 

[sptrader]

Covered calls are good for stocks that:

Are moving sideways.
Are dispensable.....as in you don't mind if your shares get called away.
Not volatile...(you'll give up some premium, but you'll keep your stock) Especially since you want low stress income.

Thanks for the info !
(steveny too)

 

[RPM217]

Just have to own it on the ex date. You could buy more on Weds just before the market close, and you'd get paid for those shares as well.

They teach you in finance class that the value of a security will fall by roughly the amount of dividend payable on the ex date. This is in theory.

In practice, i've noticed that the stock will usually open down from the previous day's close by roughly the dividend amount, but it is free to do what it wants during the trading day.

False, the fact is if the stock is ex div, and closes at 20 the previous eve, the amount of the div is .50, the next day if the stock was to open flat, it would open at 19.50, not approximately, but exactly.

Also be sure to check the stop or trailing stop orders. :biggrin: I have made that mistake before too. Sometimes the trailing stop orders will adjust for the dividend but not always.

When you enter stop orders, if you don't want to adjust for the amount of the dividend, enter it DNR (do not reduce), and it won't. These things don't happen by accident. In these cases, if you don't know, you're better off using a professional, remember as far as internet advice on investing, you get what you pay for!!!

 

[steveny]

When you enter stop orders, if you don't want to adjust for the amount of the dividend, enter it DNR (do not reduce), and it won't. These things don't happen by accident. In these cases, if you don't know, you're better off using a professional, remember as far as internet advice on investing, you get what you pay for!!!

Exactly how I made the mistake the 1st time. Thanks again. To date I have gotten way more then I have paid for. Looks like I owe somebody something. :biggrin:

 

[steveny]

Only 90 cents of premium left in the XOM march 85's. :biggrin:

 

[steveny]

The profit today well lets just say it's an obscene number. :biggrin:

Total luck and a little skill. I got the same numb fingers I had when playing Guitar Hero.

 

[da3dalus]

+27 out of the EURUSD this morning, took a long term swing position short in the USDCHF from 1.0891 around 10am targeting 1.0815...

Target hit, +76! :biggrin: I love getting paid while I sleep.

 

[steveny]

Does anyone follow the gaming industry? I just got a phone call that the state of Florida is going to loosen regulations and allow Las Vegas style casinos to be operated in the state of Florida. Has anyone heard about this?

 

[steveny]

Anyone watching this fed meeting. Ben B. is getting hammered.

 

[RPM217]

Anyone watching this fed meeting. Ben B. is getting hammered.

Steve, he needs to get hammered, the Fed has been asleep at the switch, and I'm not just referring to interest rates!!!

 

[steveny]

Steve, he needs to get hammered, the Fed has been asleep at the switch, and I'm not just referring to interest rates!!!

I don't think he made the entire problem himself though.

 

[robr]

Does anyone follow the gaming industry? I just got a phone call that the state of Florida is going to loosen regulations and allow Las Vegas style casinos to be operated in the state of Florida. Has anyone heard about this?

just drove by the hard rock casino - seminole reservation today off of 95 in miami, so they're in FL already. just something to consider.

 

[sahtt]

That was an interesting day. Caught a couple trends mid-day but still gave up some of my bullion gains. Good ol' SKF never lets me down. Any good plays from today's sessions?

 

[Ryanmcd2]

Target hit, +76! :biggrin: I love getting paid while I sleep.

Nice, I am doing the daily / weekly thing now with lots of contracts, this 5-10k a day thing is too much work, I need 100k+ per move lol :biggrin:

 

[da3dalus]

Nice, I am doing the daily / weekly thing now with lots of contracts, this 5-10k a day thing is too much work, I need 100k+ per move lol :biggrin:

I agree... i initiated some swing trades this week. I grew my teeny tiny swing trade account by 27% this week, while my other primary daytrade account was up 11%.

I gotta say, the daily charts have a CRAP load of money to be made on them and the amount of time it requires to manage a trade is, well, priceless.

I can defiantly see myself moving to much "longer" timeframe charts primarily.

But that actually brings me to a question I wanted to ask you. Do you flat your swing positions going into the weekend? Currencies can gap like mofo's sometimes and so another trader I was talking to said he always went flat into the weekend for safety's sake. What do you recommend ryan?

 

[Ryanmcd2]

I agree... i initiated some swing trades this week. I grew my teeny tiny swing trade account by 27% this week, while my other primary daytrade account was up 11%.

I gotta say, the daily charts have a CRAP load of money to be made on them and the amount of time it requires to manage a trade is, well, priceless.

I can defiantly see myself moving to much "longer" timeframe charts primarily.

But that actually brings me to a question I wanted to ask you. Do you flat your swing positions going into the weekend? Currencies can gap like mofo's sometimes and so another trader I was talking to said he always went flat into the weekend for safety's sake. What do you recommend ryan?

If you go flat you can always get back in, I got flat 90+% of the time just in case of bomb goes off or something else. I got screwed sept 11th 2001 and will not let that happen again. Also I keep long term stuff and if get boared I hit the 1hr stuff, Most 1hr stuff I do are pinbars and also with BB set to 18/2 I counter trend trade the extremes with RSI divergence. Same shit I did for years on the 3min just a longer time. Also you still have my e-mail and phone number give me a call anytime you have questions and I will be glad to help the best I can. Also I am glad to see you doing well, I really hate to see good people lose money.

 

[SilverStone05]

Bought C for the first time ever today. Long term cash cow. 6% yield.
Same with NLY....down 17% so picked it it up again.

Steve, those distributions hit from your energy trust?

 

[sahtt]

My strategy has become more and more focused. I'm long about 6 different gold related stocks/ETF's and now have a large position in the SKF. I'm getting near some selling points though in both, not sure what I'll be doing after that. I'm up huge this year though, it always makes me nervous when it comes this fast.

 

[Ryanmcd2]

My strategy has become more and more focused. I'm long about 6 different gold related stocks/ETF's and now have a large position in the SKF. I'm getting near some selling points though in both, not sure what I'll be doing after that. I'm up huge this year though, it always makes me nervous when it comes this fast.

Your kinda late on gold, keep a eye on it. Once you see it all over the news the pros are already selling it to retail. Once retail gets out it gets ugly fast.

 

[sahtt]

Your kinda late on gold, keep a eye on it. Once you see it all over the news the pros are already selling it to retail. Once retail gets out it gets ugly fast.

Not sure about the 'late' comment. I started my positions when it was at 660, I started profits around the 850 level and will be at 20% of my original position at gold 1150. The easy money was made a while back, I agree that it's nearing its end at least from the risk vs benefit side.

 

[chado]

VISA's IPO are you guys going to be buying??

 

[steveny]

Bought C for the first time ever today. Long term cash cow. 6% yield.
Same with NLY....down 17% so picked it it up again.

Steve, those distributions hit from your energy trust?

nope I haven't seen them yet. I thought they were going to pay out last week?

I have trimmed my postions with the exception of XOM, MSFT, PGH.

I was going to buy SFI when it was down but once again got side traced by the phone.

I have been daytrading apple today, up about 3500 on the day. You want to see something funny look at the leaps for bidu, what a joke.

you trading today? I am not going to sit on too much until we get the big sell off.

 

[SilverStone05]

nope I haven't seen them yet. I thought they were going to pay out last week?

I have trimmed my postions with the exception of XOM, MSFT, PGH.

I was going to buy SFI when it was down but once again got side traced by the phone.

I have been daytrading apple today, up about 3500 on the day. You want to see something funny look at the leaps for bidu, what a joke.

you trading today? I am not going to sit on too much until we get the big sell off.

I have not been trading this week. I'm slammed at work and its finals week @ B school. (shudder) Not to mention I just moved into the new condo. Dealing with work/class/moving/shitty weather and customer service at movers/utility/insurance/bank/post office is a pain. I don't think I've ever had a more stressful/sleepless two weeks.

I have a short in on BIDU that i should have taken profit on when it tanked 10 bucks last Friday. But thanks to my local cable provider I can't trade while i'm at home because they refuse to get their asses out here and set up my access in a timely fashion. I'm getting killed on it today as you can see. All in due time, though.

RE: the visa IPO....run away.

 

[da3dalus]

There has been NADA in forex land.... So many run away massive moves that I haven't been able to enter in on. I do better trading consolidation and pullbacks than big massive trends. So i've been sitting on my hands most of last week and this week.

I did put on a short today in the AUDUSD, but i'm not exactly loving it right now. We'll see how it plays out.

I also refunded my Tradestation futures account with a tiny bit of money so I could take another whack at the ES. With the tweaks and rules I built around my method that i've been trading the FX markets with I went back and started looking at the ES charts and I could kick that markets ass. So I plan to.

Whats the old addage about getting back up on the horse that kicked you off? Yea. I'm gonna do it this week. Hopefully I can get back live in it by this thursday.

Wish me luck!