An Excerpt From the Newsletter

Here’s an excerpt from my newsletter:

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Market Update Feb 25, 2015

S&P made a new high today but then settled back down to almost put in a DOJI on the charts.  Breath was positive at 330.  Tomorrow morning we have CPI, Core CPI, and unemployment claims. All of these could set the tone for tomorrow.

Call Writing Updates Feb 25, 2015

TRIP–  Stock is still consolidating here above the 200MA and the 50% retracement.  Love these setups.  Looking for it to release to the upside.

AMGN –  This is repeat from yesterday because nothing has changed.

Its hanging in there, as it is testing the 50MA.  I need this one to get above 160 by Friday to lock in $2.35 for the week.

Now I want to go back a few days and talk about a stock I high-lighted, but did not get in.

On Feb 7th:

LNG after getting a big move back on Jan 16, the stock has been pulling back, it’s consolidating and is still above all of its’ moving averages.  The stock reports earnings on Feb 20 (always double check and please do not hold the stock through the earnings date). I would look for the stock to breakout before entering, and then you can write weekly calls on it.

On Feb 11th:

LNG finally broke out of its’ consolidation pattern.  I missed this one, so I do not have a position in this one.  This needs to get above $75.67 and then I would look to write the 77 calls that expire next week on 2/20.

So just because I missed it doesn’t mean you have to.

​The stock did get above $75.67 but it was on a Thursday, so you would had to write the 77 calls for the following week.  They would have expire worthless.

The stock reported earnings on 2/20 and I personally would not have held it over. I would have had to buy back the options and sell out the stock, probably making a few bucks, very few.  Of course hind sight is 20/20 and if you held you are laughing your ass off.  Look here LNG

The point I want to make is that to be a successful trader you should not follow another trader.  You never know what circumstances may arise and what action they may take.  And by the time you find out it’s too late.   Everybody should read Pit Bull by Martin Schwartz, he tells a great story about this.

The reason I am telling you this, is that I hope you are learning something from the newsletter.  My goal is point out what I see and try to explain it and why I take the trade.  But it is up to you make your own decision on wether you should or should not put the trade on and when to exit.

I have tried other services and I have made this mistake a few times.  Always looking for an easy way to make money.  But once I started to become a student, that’s when I started to earn on a constant basis.

I will leave below the stocks I am watching for this week for your reviewing pleasure.

New Candidate For Week Of 2/23/15

AMGN is trading above three of its moving averages and is testing the 50MA.  I ran a fibonacci from the highs to the recent lows and the 50% retracement would be resistance at 160.28.  So, the game plan is to wait to see if it can get above the 50MA.  Get long just above it and then write the weekly 160 calls.  Or if the stock is too expensive for your pocket book, then you can always buy in the money weekly calls (150 calls) and then sell the weekly 160 calls.  If you know how to put on spreads, then just buy the 150/160 call spread.  Just remember that if the stock is above 160 by the end of the week, the spread can not be worth no more than $10 even if the stock goes to $200.  So you want to buy the spread for less then $10.  I think you can get in around $7.35 debit.

I have a few other candidates but for now they are on my watch list.

FB – needs to pull back and consolidate.

FDX – looks like it might want to bounce, needs to clear the 180 level.

LULU – I like this one again, but needs to pull back a little.

NSC – forming a small double top and it has the 78% retracement for resistance. The options on this one are not so great, but if you are looking for a swing trade you might want to look at it.

PSX –  I have played this one before, love the stock.  Needs to get above the 200MA.  The option premiums are not so great, so you might have to go out 2 weeks.

TRIP – Currently sitting at its 50% retracement.  I would love to see this one consolidate here and rest before it makes a move higher (if it moves higher).

If you are not following me on Twitter, I urge you to start, because I try to twit out (when I remember) what I am doing.  You will then know when I have initiated a trade.

If you like what I have to offer and you feel this has some value, then please do me a favor and tell your friends and family about it.  Share it and send them to my sign up page.

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New Day Trading Signals Web-Site

Hi everyone, I am in the process of updating my new web-site DayTradingSignals

The site is live now, but will be getting a face lift.  

I also have a newsletter service for a low cost, where you can receive on a daily basis updates on what trades I am thinking about taking.  My reasons for taking the trade and constant updates on how I am handling the position.  

Check out the site at DayTradingSignals where you can find more information on it.

Hope to see you real soon and good luck with your trading.

 

Call Writing Update Sept. 5, 2014

Here’s an update that you can get once the new newsletter comes out.  Also if some of this update does not make sense to you, then you must attend the webinar that I will be giving in the very near future.  Watch for updates and information about it.

Danny’s update as of September 5, 2014

Date Symbol Shares Price Contracts Option Prem. P&L Exp.
9/2/14 CTRP 200 66.5 2 67.5 C 1.3 $260 9/12
9/3/14 FSLR 200 71.34 2 72 C .78 $156 9/12
9/2/14 YY 200 87.75 2 89 C 1.25 $250 9/12
8/25/14 YELP 200 82.87 2 85 C 1.27 $254 9/5 Covered
9/2/14 VRTX 100 83.08 1 84 C 1.38 $138 9/12

YELP I covered the position because as I mention in the last update that the chart look like it could be setting up with a head and shoulders pattern. This is bearish.   I sold the stock at 83.19 netting .32 and bought back the calls for a .05 total gain equals 1.54 or $308.

Let’s take a look at the other positions that will be expiring next week.

CTRP last sale 68.70

67.5 calls last sale 2.25

Intrinsic value = 1.20 which means they are holding 1.05 premium.

 

FSLR last sale 71.47

72 calls last sale .96

Intrinsic value = 0 which means it’s all premium

 

YY last sale 91.42

89 calls last sale 3.55

Intrinsic value = 2.42 which means they are holding 1.13 premium.

 

VRTX last sale 95.04

94 calls last sale 2.25

Intrinsic value = 1.04 which means they are holding 1.21 premium.

 

Add up the entire premium and that’s how much more gains the account can see. I get $4.35 x 200 shares = $870. So I will make that without adding any new positions. If any of the stocks are above the strike price on the close of expiration Friday like CTRP is now, then I make the difference from where I bought the stock and the strike price of the call. Take the strike price minus stock price 67.5 – 66.5 = 1.00 additional gain.

I will be scanning through my weekly option watch list for new candidates. Stay tune and have a wonderful weekend.

 

 

 

 

 

 

 

 

 

 

New Newsletter Maybe.

I might be partnering up with a good friend that I have been trading with for quite awhile.  He loves the success that I have been experiencing with my call writing and put selling and he wants to possible add it to his newsletter or add my thoughts and insights as a supplement to his newsletter.

In the previous post I spoke about it and now i want to give you some real updates from this weeks trading.

Danny’s update as of August 29, 2014

Date Symbol Shares Price Option Prem. P&L
8/11/14 CTRP
8/25/14 FSLR 200 71.34 72 C .90 $180 Expired
8/25/14 GWPH 100 89.82 91 C 1.82 $300 Called
8/25/14 YY 200 87.75 90 C 1.25 $250 Expired
8/27/14 YELP 200 82.87 85 C 1.27 $254

CTRP is in a channel and needs to be watched to see if it pops to the upside or breaks down. So for now I have not wrote any calls. If it moves to the upside I will write calls, if it breaks down I will sell the stock out for a loss.

FSLR and YY I wrote calls again. Since this week is a shorten trading week, and if the stocks do not get a move to the upside, I will have to consider selling calls for the following week.

GWPH I re-bought the stock and wrote calls which got called away. Watch the stock to see if it holds above the short term moving averages. It has some resistance at 95.79 the 50% retracement.  This is a good candidate to re-buy and sell calls again.

One new position was put on this past week. YELP and the calls expire on 9/5.

This week net = $984

Danny’s update September 2, 2014

Date Symbol Shares Price Option Prem. P&L
9/2/14 CTRP 200 66.5 67.5 C 1.3 $260
FSLR 200 71.34
9/2/14 YY 200 87.75 89 C 1.25 $250
8/25/14 YELP 200 82.87 85 C 1.27 $254
9/2/14 VRTX 100 83.08 84 C 1.38 $138

CTRP got it’s big pop today and I sold the 67.5 calls that expire next week on 9/12 at 1.30. This is like selling the stock at new highs. 67.5 +1.3 = 68.80.

FSLR is lagging but holding its 20EMA. Watch to see if it gets going. I am looking to sell the 71.5 or 72 Calls for next week. I’m long FSLR since 7/1 and I have written calls several times totaling $4. It’s nice to get paid to wait.

YY also got a pop today and I wrote calls again. They expire on 9/12.

YELP is working beautifully as the stock moved up today with a gain 2.41 and the options only moved .20. These expire this week.

VRTX is a new position and the calls expire next week. I went small due to the high volatility.

Today’s net in premiums = $648

Danny’s update September 3, 2014

Date Symbol Shares Price Option Prem. P&L
9/2/14 CTRP 200 66.5 67.5 C 1.3 $260
9/3/14 FSLR 200 71.34 72 C .78 $156
9/2/14 YY 200 87.75 89 C 1.25 $250
8/25/14 YELP 200 82.87 85 C 1.27 $254
9/2/14 VRTX 100 83.08 84 C 1.38 $138

FSLR got its move today and I was able to sell the 72 Calls at .78 that expire on 9/12

Premium collected this week equals $804 before commissions.

YELP is the only option that is expiring this week. It got over 85 today, but then pulled in and closed at 83.25. This is the only position that needs to be watched on Friday.

For tomorrow I think I will take the day off. Maybe play golf, oh wait I don’t know how to play. But I will check in from time to time just to make sure that nothing crazy is happening in the markets.