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Just for information and if you don’t want to say that is totally fine
How much did it cost you to place the calls?
What is the potential loss you might have to take and potential profit you envision?
Schwab charges $4.95+ 65c per contract so to sell 20 contracts would cost $17.95. When you're selling calls against an existing position you cannot lose real dollars, what you lose is potential gains if the underlying security appreciates more than the total of the strike price plus premium received for selling calls before the expiration date. However, if that should occur you can rollout the options to a higher strike price and future expiration date to capture more potential appreciation. Your maximum profit is limited to the premium collected for selling the options plus any gain between the price of the underlying security and the strike price of the option (if it is out of the money).
Last edited by Richard818; 02-27-2019 at 07:58 AM..
I am essentially a value investor in established companies with a sound dividend. I use the dividends to buy additional shares. I use technical patterns to look for good entry points and opportunities to add to a position. It has worked for me over time but is not a get rich quick method for those looking to score big. In my opinion that is speculation. In the past I had used technical analysis to make some quick gains in up markets with growth stocks. However, the sword is sharp and can be quite punishing. I tracked my trades and found for me it was far better to use my value method. Fund managers do a lot of predictably unpredictable things around the end of the quarter. It's not easy to get ahead of their moves down.
Schwab charges $4.95+ 65c per contract so to sell 20 contracts would cost $17.95. When you're selling calls against an existing position you cannot lose real dollars, what you lose is potential gains if the underlying security appreciates more than the total of the strike price plus premium received for selling calls before the expiration date. However, if that should occur you can rollout the options to a higher strike price and future expiration date to capture more potential appreciation. Your maximum profit is limited to the premium collected for selling the options plus any gain between the price of the underlying security and the strike price of the option (if it is out of the money).
So you do this on your own
Any idea what the process would be if someone with AUM decided on this strategy and used the investment advisor they are already paying fees to
Supposedly we are not paying charges for buying/selling shares in our mutual funds/ETFs or bond funds
Any idea what the process would be if someone with AUM decided on this strategy and used the investment advisor they are already paying fees to
Supposedly we are not paying charges for buying/selling shares in our mutual funds/ETFs or bond funds
s this perfect? No. It will make you miss opportunities and occasionally keep you in the market through a quickly developing plunge. But it doesn’t have to be perfect to improve your results. It just has to be better than what you would do on your own.
That is the “disclaimer” that all registered advisors and boilerplate language require I guess
Yup. His buy/sell signals were all dependent on the 200ma. As a young man in my early 20s it was my first exposure to any type of technical analysis.
I think it was the crossing of the fast 13-week moving average versus the slow 39-week moving average.
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