Stock Insurance OR Portfolio Insurance – Revisited

With the addition of new and interesting securities to help hedge a stock portfolio, the question arises more and more: ‘Is it better to insure my stock directly or use a different hedge to insure my portfolio?’

This is a very important question which has many components to it. During a PowerOptions Open Forum Webinar on January 14th, 2014 this question was posed. The actual question was: Continue reading

MORNING UPDATE: PriceWatch Alerts for BA, TSLA, AAPL, and More…

MORNING UPDATE: PriceWatch Alerts for BA, TSLA, AAPL, and More…

February, 11 9:00 AM ET – PriceWatch Alerts for BA, ATVI, MNST,
TGT, YPF, TSLA, DISH, BLK, MMM, RIG, AAPL, NPSP, GM, X, Market
Overview, News Leaders and Laggards, Today’s Economic Calendar,
and Index Support & Resistance Levels.

PriceWatch Alerts for BA, ATVI, MNST, TGT, YPF, TSLA, DISH, BLK,
MMM, RIG, AAPL, NPSP, GM, X, DLTR. Continue reading

Weekly Options Crash Course for Options Expirations

When the weeklies were initially offered on standard stocks, you would have only the next week out option. The new option would be released on Thursday morning prior the current weekly option expiring on Friday.

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Filter for MACD added to the PowerOptions Search

A new filter for MACD has been added to the PowerOptions Search tool for all strategies! This new filter (located in the Technicals tab) will allow you to search for stocks where the MACD is above or below the Signal Line and by how many days. You will also be able to screen for stocks where the MACD and Signal Line are above or below the Zero line. This filter will allow you to better screen for stocks with positive or negative momentum.

Timing Investments when Stock Price Crosses a Moving Average

Timing your entry into a position using options is very important because time premium is continually eroding from the position.  Ideally we want to enter a bullish position just as the stock is about to move up.  It is not possible to know in advance when the move will occur, but we can get an early indicator once the move has started.  There are several tools available to help the investor pick the best time to enter a position.  One such tool, which has been recently added to the PowerOptions screener, is the crossing of a stock price above a moving average such as a 20 or 50 day moving average.  Another form of this tool is to use the crossing of the 20 day moving average over the 50 day moving average as a bullish trigger.

Investors will scan charts looking for this type of crossing to trigger a buying opportunity.  They also look for confirming volume as the crossing takes place, however, this effort can be very time consuming.  Using the PowerOptions screener an investor can scan the entire market very quickly to find a first-time stock price crossing of a moving average.  The parameter scanning form in PowerOptions to capture the moving average crossing is very simple to use: Continue reading

Portfolio Tools offer Trade Management Ideas

Have you been using the PowerOptions Portfolio tools to help track and manage your options positions? If not, now is a great time to start!

PowerOptions free trial users and subscribers can enter new positions into the Portfolio directly from the patented Search tools or manually with just a few clicks. Some basic features of the Portfolio tools to help you better track and manage your positions are:

  • Profit and Loss Portfolio tool tracks your current positions as linked trades – meaning your covered call position will have the stock and call option linked together rather than separately.
  • View Original Expected Gain vs. Liquidation Value vs. Future Expiration Value for the entire position, not just the individual leg. Continue reading

How to Succeed with PowerOptions

We all want to succeed by making money with our investments.  PowerOptions was designed to provide a set of tools to help and enhance the probability of success.  If used properly PowerOptions can help you make more money.  Follow these three steps on your road to improved performance: Continue reading

A Little Less Bullishness For Google

In a couple of previous articles related to Internet search company Google (GOOG) posted on April 15, 2012 and May 25, 2012, bull-put credit spreads were considered for the company. A bull-put credit spread may be entered for a credit by selling one put option and purchasing a second put option further out-of-the-money with the goal of the options expiring worthless and retaining the initial credit as a profit. The first bull-put credit spread was successful and provided a return of 7% (70.5% annualized).

The second bull-put credit spread considered consisted of a short 2012 Jun 540 put option and a long 2012 Jun 515 put option. The position was entered for a net credit of $1.77, which represented a potential return of 7.6% (126.4% annualized). A management point of $565 was set for the position, which has been breached (shown below), so consideration for an exit or a roll is given. Additionally, since there’s only 4 days until June option expiration, consideration is given for modifying the management point and maintaining the position as is.

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Netflix: Highest Return Protected Covered Call

A protected covered call or collar search performed using PowerOptions tools, seeking to find the highest returning position for companies with a maximum potential loss of 8% and a stock price in an uptrend, produced digital video content provider Netflix (NFLX) as shown below:

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The Best Investment for Mom on Mother’s Day

Stumped trying to decide what the perfect gift to get for Mom on Mother’s Day? How about an investment in on of her favorite companies? Better yet, how about the “best” protected covered call or collar investment in one of her favorite companies? A protected covered call can be entered by selling a call option against the stock and using some of the proceeds from selling the call option to purchase a protective put option.

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