You're the Man! I've been holding and selling calls that expire without reaching strike price because there's been no big movement up.I think I'll hold off on selling more for now,don't want to have my shares taken.
When they cut the dividend on LINE it went up for awhile then down with the rest of them.Line is also hedged but was taken down to $9 ,I was in but am out of it now,till oil goes back down.Too much volitility for me.
Here's what I'm doing.I'm selling(not buying) covered calls against my shares.The May 15 strike calls were bid .50,ask .95.I'll ask for 5 cents less than the current ask price,then keep dropping in 5 cent increments ,once per hour till I get a bid.I don't want to sell anything too far out, 2016 etc because a lot can change between now and then.
.Why do you want to buy options?You should sell covered calls against the shares you own.That way you collect the option premium plus the monthly dividend.
You got it backwards,you want to sell calls against your shares.They pay you to "rent " your shares.Get options approval,then pick a strike(the price the shares get called),then pick the options expiration date from the available list.
For the most part I stopped buying options,only sell covered calls.It's not as exciting,but steady and slow wins the race.When you win big playing with options,you also lose big.I got burned and lost my nerve last year along with a lot of money.Think about it 90 percent of options expire worthless.
I'm getting too old to be bothered with this rollercoaster ride.If I could find a better place for my play money,I'd put it there.I'm 60 and remember the good old days when schools encouraged kids to open passbook savings accounts that payed 5% guarenteed.Deregulation of the banking industry screwed the average investor to benefit wall street.I'd open an invester account with lending club,to get a safe return of 5-8%,but residents of my great state of NJ aren't allowed to participate in peer to peer lending.
I can't find it either.You used to be able to click on it when you pulled up the interactive charts;I used it to find runups to the dividend date ,but it disappeared when they changed the format.I've just about given up on stocks anyway,I'm 80percent cash till things settle down.What a waste of time,all of my profits for this year disappeared in 2 weeks.
This stock ran up on good earnings,then down on no news that I could find.Is it just following the market direction or is something going on that I'm not reading about?Hopfully this runs back up with good earnings next month.
I'm in at 65,I sold covered calls against my shares,just for some insurance against further drops.I'm at break even between the option premium,and the share value.If it drops a lot more,I'll buy back the options at a fraction of the amount I sold them for(I'll take a loss but it will be less because of the option premium I banked. I believe oil will rebound so I'll sit tight till it does.
It.s been on my radar for some time(I follow IBD.s top 50) When oil stocks stop with this correction,I may start a position in SLCA .It ran up too fast ;it has to consolidate before it resumes the uptrend.I don't make a move till IBD tells me to.
I sold covered calls on my shares;when it dropped I bought them back,for a fraction of the sale price .Now it's running back up again.I might sell more calls;rinse and repeat.
I would have never tried options if not for Doc's encouragement.Although I wasn't trading the glad stocks I was reading most of the posts.
KMP was my biggest options winner after AGNC went south,it also was my biggest loser when it went down(I tried to pull a Zion,and went all in;big mistake).Are you trading options on LGCY?
I finally got my nerve back and just started playing with kmp and EPD options for this dividend run.So far got a double.Good luck to you.Are you playing any other options?
I didn't follow them when they closed it to the general public;I never got excited over the Glad model.I did learn a lot about trading the dividend runs from Doc,currently holding some KMP calls till probably 7/28.I'm thinking about buying EPD for a run to ex.
KMP is holding up well in this market,which is down because of world events.Historically this runs up into the ex-dividend dates;that's when I sell my calls pre-ex,I've seen this stock run up as much as $4 into past ex dates,just look at the charts,they don't lie.
I would not want to be short this stock when they receive FDA approval possibly 12/9.Thit drop will turn into a pop.
PPS is dropping because housing stocks dropped on bad earnings yesterday.Pulte was down 10 % on lower earnings,this stock trades with the housing stocks.
Doc's got his own blog going ,Xion and a few others are regulars there.When the reits went to hell,there was no way to trade the divi runs anymore;no money to be made consistently.We're currently trading a few MLPS and some monthly dividend payers.Why stay here with the turkeys when you can soar with the eagles?(and make money )