Stock Option Investment Advice

Configure Stock Chart Parameters

Setting Stock Chart Parameters using Big Charts: In Power Options we use Big Charts as our stock charting tool.  There are 3 stock chart programs offered by Big Charts: Basic Chart Advanced Chart Interactive Chart We use the Advanced Chart version, with modifications to the default parameter settings.  We modify the default settings to make the display more user friendly for the options trader.  The modified settings are then saved so they will be applied to future stock chart displays without the need to change from the default setting each time a new stock chart is requested.  Big Charts settings are changed in the left hand column of the chart display (in blue): Stock chart parameter changes The first grouping of parameters are for “Time Frame”.  A one year time frame is shown by default, but for option trading 3 months is a more convenient choice.  And the frequency is left…

Stock Option Investment Advice

Earnings Growth Creates Stock Growth

Earnings are an important indicator of stock price appreciation. In general, if you expect to earn 10% on your stock investments, the stock you choose should have their earning grow at 10% or more.  Certainly there are exceptions.  Buying a stock because of some short term news event, a new technology that is being developed, or a rumored merger are all exceptions.  But over the long run, you should select companies for stock purchase that have a steady earnings growth so they will tend to rise in stock price in line with that earnings expectation. When company selections are made for long stocks or married puts, we generally screen for companies that have good earnings growth.  On the PowerOptions site the parameter we like to display and search by for earning growth is %EPSG.  %EPSG is and abbreviation for % Earnings Per Share Growth.  If %EPSG is not displayed in your search results, add that…

Stock Option Investment Advice

Analyzing Married Puts with PowerOptions’ Position Analysis Tool

I recently spoke to an investor about a position he had in LITE @ $47.90 +1.30. He wanted my advice on what to do with the married put position. Here at PowerOptions and RadioActiveTrading we provide tools to help investors find, analyze, and manage their investments. We do not make recommendations or give advice on how and when to trade individual stocks or options. So a question like, “What should I do next”, is rather awkward.  We do not want to give advice, but will work with the self directed investor to find the information they need to make there own decisions.  In this case, the conversation proceeded down the following path:  The position was in his Power Options portfolio as a marred put, which enabled both of us to look at the Big Charts graph (available under  “more/info”, Charts) for LITE, which had a recent large stock price rise.  I asked…