[hache02]

Because of Canadian rules, I have a strategy of writing 5 puts and buying 500 shares (in RRSP) of the stocks. I wrote the put mentioned above but couldn’t get my fill yesterday at 83.20 (500 shares at lower BB). Luckily as I got filled just now at 82.60. I may look at the CC but as lower BB and other technicals looking good, matches even better from the last Teddi article on WALMART Feb 24th. She was doing the BB strategy at 84$ and says support is at 82.

[hache02]

Yes I thought you were shutting me up but ethical investing was an interesting topic but someone with a chip on his shoulder told us to stop.

[hache02]

OH phew, I was afraid of getting another “stop emails” from you again. thanks

[hache02]

I just entered Apr 82.5 this afternoon for 1.48. Is that OK to say here?

[hache02]

Closed my final TWTR shares (from my strategy of write 5 puts in reg acct and buy 500 shares in retirement acct) as it passed my target. Had risen 10$ per share. I don’t now if it will return to its 30-40$ bottom.

[hache02]

Crazy market again. MCD up that much?

[hache02]

I have the 97.50 CC so pretty safe but TD very bullish on MCD.

[hache02]

I never liked this company as they made mistake after mistake and she did not look good under attack via Cramer et al. I short it occasionally but not this time.

[hache02]

I like the “sell at a tax loss” and write a Leap. This way you free cash if on margin as an added bonus (if that is the case).

[hache02]

Randy, thanks a lot, so deep ITM is the way to go.

[hache02]

thanks a lot, so deep ITM is the way to go.

[hache02]

I agree with this market so high and so I am short/cash 15%+. As long as rates so low and US only place to be, I think it will be sideways and so I am writing 1 month or 2 puts but 5 puts instead of 10. Furthermore we are in the best investing period until April (so I am not going further than April).

[hache02]

BIIIP (or anyone else), How would you do the synthetic CSP for a stock I am trying to get into, KRFT? ITM, NTM or OTM or calculate extrinsic value (time value) equal to the put premium done otherwise?

[hache02]

I have some TCK for a while and it is in Metallurgical coal, gold and oil sands.
It was my best CC play last year and I hadn’t noticed that it has recevered well. The TA are not good (top BB, money flow/Stochastic at overbought).

On Teddi’s free site, VALE is so popular but this is a much less risky investment than that one. IMO Canada is a much safer place to be than Brazil esp. for currency if you are in US.

[hache02]

Since AFL is quite high here, I was looking at OTM naked call on AFL. Doing the Mar 62.50 gives over .75 yesterday and I was trying for closer to 1$, what do you (Teddi and everyone) think?

[hache02]

Good call so far. I have the KO P 20MAR15 41.00 sold for .55 which is decaying fast.

[hache02]

Good one, didn’t expect that one.

[hache02]

Sounds like the type of stock, Buffett would take a flyer on.

[hache02]

thanks BIIIP, great explanation. End of trading day, my mind couldn’t do the math! The only correction I see is that there is a limited downside risk in all cases – the strike less premium if stock goes to ZERO. Only naked calls or shorting stock have in theory unlimited downside risk.

[hache02]

Could you post to the free BB and this can be debated on whether it is as risky and disadvantages to CSP (if they were available)? If it does work almost similar, I would be very interested. If you can describe how this works and simulated CSP here, all the better and thanks for the idea in any case.

[hache02]

I have orders to BTC my stock a little over 33 as well as closing ATT , AFL and NUE at near my 80% targets (T or ATT is stock and puts, the others puts)

[hache02]

AT TD, when using Active Trader, I cannot even call to roll and have to BTC the short option and STO the new short option. TD is so archaic.

[hache02]

thanks. You mean you STO calls when it hits 33 and BTC when it drops to 31 or am I missing something (note title is CC).

[hache02]

Yes exactly, I buy 500 in RRSP and write 5 puts in my regular account. Too bad we cannot do CSP in RRSPs as my regular account is doing much better past 2 years due to this advantage (income from puts or get in cheaper in stock if assigned). In this case, I like this trade so much I wrote an extra 10 puts.

[hache02]

Yes great call. I just closed the Feb 46.5 put and still have some stock and mar 47 puts. I got in the week after Teddi’s call as I had missed the first (Teddi’s) dip.

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