[Teddi Knight]

Bristol-Myers Squibb Stock has been an excellent performer but has further to fall. Take it slow would be my advice when moving into Bristol-Myers Squibb Stock.

[Teddi Knight]

Roll out and down to $31.50 and then sideways for income until eventually either the stock recovers or you end up out of the money when the stck moves back up.

[Teddi Knight]

You could actually do the same thing by setting up a spreadsheet and just keeping track of prices. Excel is good for this as it can chart out the prices based on where the VIX has been trading. By comparing the VIX index movements over a range of days against a 3 month out call option at $14 call strike for example,, it gives you a good idea as to what to expect as the VIX index falls.

[Teddi Knight]

It usually takes several days of low volatility for prices to drop in the VIX. Days like today help to keep prices up. We need more days with volatility below $13 for the market makers to reduce prices in keeping with a lower volatility. For pricing I use past trades and have a spreadsheet that I refer to from years of trading the VIX. This is how I establish what I feel is a good point for entry based on prices paid in the past.

[Teddi Knight]

On naked calls I only sell them on stocks I would own. So for example with YUM stock I would pick up shares and turn the naked calls into covered calls. Then move those calls lower to be sure the stock doesn’t leave you hanging if it pulls back a bit. You can of course also sell the shares if you bought them at the strike point and they stock does not go higher. There are a lot of simple strategies for handling naked calls. Probably as mnay as for handling naked puts.

[Teddi Knight]

Cheaper through Facebook apparently and easier. Have you tried the E transfer through banks plus a lot of people really hate paying the banks more. If I was in Facebook on my computer and had to quickly send $10.00 and it didn’t cost me a thing or 10 cents, I would certainly do it. Paying a bank $1.50 for $10 or even $100 is ridiculous in my opinion. I prefer sending for 10 or 20 cents.

[Teddi Knight]

Here you go. I did two different trades. A roll down and I will be accepting some shares. https://www.fullyinformed.com/members/trade-alert-and-update-roll-out-or-assignment-what-to-do-seagate-stock-mar-20-2015/

[Teddi Knight]

Stopped out at $112.15. 12:01 – How are you doing Jack.

[Teddi Knight]

Stay with a nice tight stop

[Teddi Knight]

Still climbing at 11:56 but signals continue to deteriorate.

[Teddi Knight]

Nice, a push to the upside. Keep on climbing!

[Teddi Knight]

Warnings signals are starting to develop at 11:48. My stop is now 15 cents.

[Teddi Knight]

You should keep a tight stop-loss. Perhaps move to 20 cents or even 15 cents when you see the sideways movement appear. We are now stuck with a lower high. I am expecting a drop shortly. My stop is at 20 cents now. 11:47

[Teddi Knight]

Here is a quick write-up regarding re-entry to the second and third trade. https://www.fullyinformed.com/quick-comments-on-second-and-third-nasdaq-trade-1109-mar-5-2015-understanding-re-entry/

[Teddi Knight]

Stopped out for loss on second trade I will be re-entering here at $111:40

[Teddi Knight]

Initial stop-loss is 25 cents lower

[Teddi Knight]

Bought 1000 shares of TQQQ for $111.74 at 11:09

[Teddi Knight]

This morning first NASDAQ trade was ended at 10:56: Here is the twitter post NASDAQ trade is stopped out at $112.60 at 10:56. I will restart another one shortly.
I cannot find the post I did this morning on this trade. My apologies for posting this to this trade.

[Teddi Knight]

This should help as well: https://www.fullyinformed.com/members/quick-comments-on-nasdaq-trade-1032-mar-5-2015-understanding-trading-the-trend/

[Teddi Knight]

Absolutely mixed signals, but as explained, the lack of new money means the market is choppier and volatility higher. Everyone keeps waiting for the next big correction. That is just not in the cards yet. Remember that even in 2007 it was a great year for trading and while the bear market started, if it had not been for the financial crisis, it would have been a short bear market. It was the housing crisis combined with the financial crisis that took out stocks. If there had been no financial crisis and if the government had stepped in far earlier, even as Bernanke admits, there never would have been such a deep crisis. It’s hard to write market direction comments because people tend to be worried about another downturn in stocks. Instead what I am saying is these are the reasons the markets are reacting the way they are and this has happened before, but remember that even in 2007 the market made new highs. For another bear market to start there has to be a catalyst. There are none yet. So bearishness is always there but then bearishness is always around. Right now caution is better than being a bear or bull. Look for opportunities in strong stocks and trade those opportunities but don’t consider any trade a long-term trade. This is NOT a long-term market. Emails I received last night showed that the majority who followed my lead on Spy Puts were stopped out for profits because they used stops. My TQQQ trade this morning is the same – use a stop-loss. Nothing is a longer term trade unless it happens that the trade is not stopped out.

[Teddi Knight]

The trade on Wednesday as explained was short-term just to take advantage of the weakness. The trade used a tight stop-loss. As explained in the article . “This is not a giant drop coming or a collapse. This is just weakness while the market prepares for the next move higher.” – You have to understand that the stop-loss rules the trade. I could have held the spy put trade longer but unfortunately it was stopped out. That’s okay as this was a short-term trade. Remember that the medium term is still higher. The belief of any coming collapse is just not in this market at this time. As explained in the market direction outlook, if the 2100 does not hold then the market will move to 2075. This morning again the 2100 held that means we are moving higher. Remember that I am just posting my trades so you can see how they are handled and how I trade. Keep using tight stops. Taking the dog for a walk is fine, but then put in place a trailing stop for those few minutes when you are away. Markets are very fluid, the trend is still up. As outlined in my articles as even in the latest article which Jack quoted – “This is just weakness while the market prepares for the next move higher.”

[Teddi Knight]

I bought all the puts over the lunch hour and started selling them at $1.50. This is an easy and obvious trade.

[Teddi Knight]

Yes. I spotted it after publishing and fixed it. This is more like the pennies trade. You can read more notes with the spy put trade link https://www.fullyinformed.com/members/spy-put-options-trade-alert-for-mar-4-2015/

[Teddi Knight]

Here is the first trade and details https://www.fullyinformed.com/members/spy-put-options-trade-alert-for-mar-4-2015/

[Teddi Knight]

Very nice trade in my opinion. I still think XOM stock will hang in and have a hard time breaking $85. I had hoped for a bit of a bounce per my trade on March 2 but I think that it unlikely in the immediate outlook. I like the $85 put strike a lot at this time. The credit put spread though is a good idea.

[Author]

Posts