Stock Option Investment Advice

PowerOptions Coaching Continued…

Once I read Mike’s last blog post, http://blog.poweropt.com/2018/11/20/1581-coachingsession/ I decided to write up a quick summary of our Coaching benefits and an example coaching session I had recently… read on for the goodies… So what is the Coaching Session? Either Mike Chupka or I (Ernie Zerenner) are here to answer your options trading questions, show you how to profit with PowerOptions in your preferred strategies AND show you better research, analysis and trade management. This is not a sales call! We answer your questions on options trading based on experience, we’ll show you which tools we use and how to maximize performance. Are you not sure which strategy suits your needs? No problem! We can help with that too. Basic FAQs: Does the Coaching Session last the full hour? It lasts as long as you need it to! We block off an hour for each session to help you as needed….

Stock Option Investment Advice

Don’t Hesitate! PowerOptions Coaching Sessions

During last Friday’s Open Discussion, I had an interesting question come in… Michael: I am interested in a 1-on-1, 15-minute coaching session to answer a few questions. Do you offer quick training calls? Yes! Trial members and subscribers can schedule Free Coaching Sessions at any time! Simply select a time that matches your schedule and fill out the basic information (or..leave it blank!). Steps to Schedule a Coaching Session: 1. Click ‘Free Coaching’ under the Home Tab.     2.  Choose the time that matches your convenience (shown in Eastern US Time Zone)       3.  Fill out some basic info and click Reserve Now! You are all set!           Here is the snippet from the Open Discussion in response to Michael’s question:  Click to Watch!

Stock Option Investment Advice

Watch Lists Tools on PowerOptions

Problem: Your Stocks Aren’t Showing Up On PowerOptions: A couple of days ago one of our subscriber-investors called me with a problem.  He complained that the stocks shown in the PowerOptions search results were companies he didn’t recognize and he had never traded before and wasn’t trading now. This happens often and for a whole list of reasons… We don’t know the list of stocks YOU like unless you enter them in a list… and the search tools find any stock, Index or ETF that meet the search parameters for that strategy. If your favorite stocks aren’t showing up, it’s because they: Don’t meet one of the Fundamental or Technical Criteria. May match those criteria, but the options don’t match the Options Criteria. Are further down the list… maybe pages down in the results. Solution: You can ‘force’ the search tools to look only for option results that are on…

Stock Option Investment Advice

A 2018 Market Forecast Mid-Term Review

At the beginning of the year I wrote a Blog article about “A 2018 Market Forecast“. The basic forecast I setup was a rotation of sectors based on the economic and political environment of the time. About a dozen stocks were recommended in 5 sectors. Using those recommendations, I formed a model portfolio and have been tracking the results over the last 6 months. This article will review how that model stock portfolio has performed and offer some portfolio re-allocation ideas. The initial portfolio in January was: There are 10 positions in the portfolio. $100,000 total was invested with about $10,000 in each position. During the last 6 months there have been some wild swings in the prices, but no changes were made to the portfolio. As an example, SLB was up as high as $79 and as low as $63. It is currently at $67 with little change from…

Stock Option Investment Advice

Trading Discipline vs. Experience

Introduction: I have been trading stocks for over 40 years. And yet mistakes are often made despite the years of experience. Just when one thinks things are going fine, something happens that humbles the trader. It is with this background that I relate a recent trading experience as a lesson we can all learn from. Background of the trade: Earlier in the year the stock Red Hat, Inc. (RHT) was traded for a 28% profit (as shown on the Fusion Track record at RadioActiveTrading.com). But after a market sell off it looked like a market opportunity to re-enter the position. RHT was purchased on 3/28/2018 for $145. A put option was also purchased following the rules in The Blueprint to create a Married Put for safety. RHT rose soon after the purchase into the 150’s and then shot up to the 160’s. The put was sold as it still had…

Stock Option Investment Advice

A 2018 Market Forecast

From the Desk of Ernie Zerenner:  A 2018 Market Forecast At the start of a new year, it is time to reflect on last year and changes to be made in the next year. This is the time of year to make New Year’s resolutions, consider changes to your will or beneficiaries, and investment portfolios. The new year brings the opportunity to make 365 changes and 260 change opportunities to your portfolio. This weekend I tackled the last one, possible investment portfolio changes. These changes were based on several basic assumptions: Our concern is that the market may be over bought as mentioned in our last Blog article ‘Some Market Parameters to Consider Heading into 2018‘. Historically we are overdue for a 10% level correction in stock prices. With the influx of more money going into the economy from tax reform, repatriation of foreign earnings, and infrastructure rebuilding, there will…

Stock Option Investment Advice

Some Market Parameters to Consider Heading into 2018

It is year-end, and time to reflect on this year’s market activity. It certainly has been a strong up trending year for equities. And with all the very positive news currently, there is room for more gains in 2018. However, markets do not just go up forever. The markets are extended without a normal set back of 10% in some time. Is it time to be cautious? While at the library this weekend, I looked through the Value Line Survey. They had a table of some key market and economic parameters for the present vs. historical highs and lows. Some that caught my attention are listed below: Parameter                Current              Last Top            Last Low PE on VL stocks        20.3                    19.6                   14.3 Dividend Yield VL      1.9                       2.0                     4.0 Prime Rate                4.5                       4.3                     3.3 AAA Corp. Bonds      3.5                       3.5                     5.5 Short Interest/Vol      16.8                     17.9                    8.6 As you can see most of the…

Stock Option Investment Advice

Part 2: Stock, or Portfolio Insurance?

Here is Part 2 of our Stock, or Portfolio Insurance? Series:  Selecting the Right Put In this video we discuss which broad based ETF or Index Put to Select to Insure an overall portfolio. In Part 1 you saw that using an SPY Put option (the 250, ATM strike) was better insurance on a portfolio over buying shares of an Inverse or Leveraged ETF. However, was this the best strike selection? What about lower strike, lower cost, Out of the Money Puts? Wouldn’t puts with a higher delta, deeper In the Money perform better? This video breaks down the costs, outcomes, pros and cons of the different strikes you can use to insure a portfolio.  We also give you an outline of how to analyze which put might be best to insure your portfolio. I hope you enjoy Part 2, and I look forward to your thoughts and comments!

Stock Option Investment Advice

Portfolio Insurance (2017) – Part 1: For the Stock Traders

This article is Part 1 of a series on evaluating the ways to add Portfolio Insurance if you are anticipating a market correction or market decline. Most of us are probably in more Bullish positions, based on the last 12 months performance of the market. Every week new highs are being hit, and bullish stock and option traders have been doing well.   Over the last 12 months, we have seen SPX (S&P 500 index) and SPY (S&P 500 ETF) gain over 17% (SEP 13th, 2016, SPY closed at $213.23 and is currently around $250.00).       During that same time period, NDX (NASDAQ 100 index) and QQQ move up 26% (SEP 14th, 2016, QQQ at $115.85 to about $146.00).     Sure, there were small hiccups here and there along the way, but the extended growth has led to many pundits, gurus and other stock prognosticators warning of…

Stock Option Investment Advice

No Free Money with Special Dividend

I am sure that you’ve heard Costco Wholesale (COST) announced a special dividend of $7.00 per share, plus an additional increase of $0.05 to its regular quarterly dividend. The special $7.00 one time cash payment will be paid on May 26th, to those who are on record as owning shares on May 8th, 2017. What do we expect to happen when a special dividend is paid? Well, we expect the COST share price to fall -$7.00 to reflect the $7.00 one time payment. So, is this a Free Money investment if I were to buy an Out of the Money or At-the Money put option? Since the stock is going to fall the put would have to gain in price, correct? Even though I did not receive the dividend, my put would still gain and I would have a nice, juicy, leveraged profit…right? Not quite. In fact, not at all….