IT already happened three times.
Trends only come in three's
volume was 1/3 of average volume.
goes to show how my posts are ignored by most
Date Open High Low Close Volume Adj Close*
Sep 18, 2014 273.97 275.07 272.58 275.07 449,100 275.07
Sep 17, 2014 272.00 274.40 270.44 272.98 1,269,800 272.98
Sep 16, 2014 264.73 271.45 264.05 270.82 1,332,600 270.82
Sep 15, 2014 268.12 268.99 263.64 266.09 1,192,700 266.09
analysts seem to like prospects
once it did break out to $20- but three other time when it hit $17.50 it dipped
the first few says options are not available.
When they are, the price movement will be contained by the Big Boys
$1 from the sale of covered calls at $17 and $1 NYCB cash dividend is $2/$17 = 11.76% return.
Giveaway would be $18+
Another often not discussed benefit of selling covered calls....it is expense free.
If you borrow money from a bank or a brokerage there is an interest charge. There is no costs selling pre-pocketed profits.
You pay taxes only when a trade is closed. WHen playing 12 to 24 month options that is a long way off.
If the stock is higher than your giveaway, then you can close out the trade for a "paper" tax loss but sell a later dated higher strike price for more money...so a larger cash stake.
A few weeks ago, it was rumored AAPL was buying at $97.
So, AAPL will defend it's stock price now and later. It will have more cash after this quarter, as well.
This is why We posted on July 30. 'WE are selling $90 puts for $10. These are now $7.45...25.5% profitable
Twice when NYCb climbed above $17 I posted this suggestion and then the stock fell back to $14.
I hope this stock runs but I watch for trends
watch the bid/ask.
Then one day watch the stock open 2.0 to .30 lower on 100 shares then flatline until the market maker closes out their short