Stock Option Investment Advice

Coverered Call Roll for VEEV

Analysis of Roll outs for a VEEV Covered Call  Introduction: VEEV @ $114.65 +1.38 (1.22%) currently has advanced strongly over the last month or two. In the month of January 2019 VEEV had advanced from about $82 to a recent high of $116. Writing covered calls (CC) has the problem of limiting the up-side gains of a stock. Investor’s compensate for the limited gains by rolling up the strike price to participate in the upward movement of the stock. The CC strike price for VEEV has been raised several times from $95 to $100 to $105 currently. And along the way the $95 protective put has been sold to avoid further time value decay. At the same time a covered call has been written and the stock price allowed to go ITM to provide some downside protection. Problem presented: We are again considering rolling the $105 strike call as the…

Online Stock Trading Software

PowerOptions SwiftSkills: The Historical Tools on PowerOptions

Click HERE to watch a 15-minute video on how the Historical Tools on PowerOptions can solve your back-testing needs! This discussion came from a Coaching Session with Bob, a PowerOptions Customer. Bob wanted to see how he could ‘…determine the best historical Delta selection for calls when buying SPY LEAPS.’ Well, the Historical Tools will help us with that. What Are The Historical Tools?: There are 3 main Historical Tools on PowerOptions: Historical Chain. Look up the Option Chain on any stock, on any date back to April 2006. You can then move forward or backwards, to see the price and criteria change day by day. Or, move from one month to the next and beyond to see the change in price. Historical Search By Symbol: Select a Strategy (in this case, Long Calls). Select a Screen date back in time and then select the Expiration Time Frame. The Historical…

Stock Option Investment Advice

VXX – Thanks for the Hedgeories

Oh, those pesky Volatility Indexes, ETFs, ETNs, 2X and 3X and inverses…maybe there are too many now. But, unfortunately, it is time to say ‘VXX – Thanks for the Hedgeories’ It appears Barclay’s is shutting down VXX – iPath S&P 500 VIX Short-Term Futures ETN – on January 29th, 2019. VXZ – iPath S&P 500 VIX Mid-Term Futures ETN will also terminate. What is an ETN? An ETN is an Exchange Traded Note.  Unlike an ETF, if you hold shares in an ETN it is more like holding a bond.  An ETN is an unsecured debt note underwritten by an institution – in this case Barclay’s. You can buy shares of an ETN, just like you can with an ETF.  But, the ETN is not invested into the asset it tracks. There are pros and cons to each, but we will save that discussion for another blog. Why Does the…

Stock Option Investment Advice

PowerOptions Coaching Continued…

Once I read Mike’s last blog post, 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 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…