Malcolm, Might you suggest what decisions you WOULD make if you were to sell an option: Covered Call or Put? what option chains have you been looking at? Strike price? premium choices? Expiration dates. The more specific you are, I think the better we can discuss it.
Susan, too, can you add details for Mr. Cool? the ticker, strike, sell premium and expiration date.
Can't. I'm just too new at this. I've watched for over a year
the yahoo group and just found the COOL tool site. I've made
option cover calls with the goal of liquidating an asset - FAST
10/20/2012 44, and FAST 11/7/2012 44 - which I now understand may
not have been the best route for collecting gains. I didn't do
the trades blind, but they weren't done with an informed and
educated process.
I was interested in your thought on puts for FAST a month or so
ago and have been researching the trade from the beginning before
clicking the mouse!
Thanks,
Malcolm
On 9/5/2012 10:55 AM, ETANA FINKLER
wrote:
Malcolm,
Might you suggest what decisions you WOULD make if you were to
sell an option: Covered Call or Put? what option chains have you
been looking at? Strike price? premium choices? Expiration dates.
The more specific you are, I think the better we can discuss it.
Susan, too, can you add details for Mr. Cool?
the ticker, strike, sell premium and expiration date.
Malcolm, Even this level of detail is helpful I think. I sort of understand what you're saying about the FAST calls, but lost you on the paragraph about puts.
Do you own FAST? Did you buy it a month ago? A year ago?
So you want to liquidate it, at a strike of 44; you wrote how many contracts for Oct and how many for Nov? I assume this is paper trades?
Then what are you thinking about the puts for FAST? and why are you doing both?
The more that folk write here, the more others can react to and we can all learn from
etana
On Wed, Sep 5, 2012 at 2:12 PM, Malcolm Myles <malcolm@mmyles.com> wrote:
Hi Etana,
Can't. I'm just too new at this. I've watched for over a year
the yahoo group and just found the COOL tool site. I've made
option cover calls with the goal of liquidating an asset - FAST
10/20/2012 44, and FAST 11/7/2012 44 - which I now understand may
not have been the best route for collecting gains. I didn't do
the trades blind, but they weren't done with an informed and
educated process.
I was interested in your thought on puts for FAST a month or so
ago and have been researching the trade from the beginning before
clicking the mouse!
Thanks,
Malcolm
On 9/5/2012 10:55 AM, ETANA FINKLER
wrote:
Malcolm,
Might you suggest what decisions you WOULD make if you were to
sell an option: Covered Call or Put? what option chains have you
been looking at? Strike price? premium choices? Expiration dates.
The more specific you are, I think the better we can discuss it.
Susan, too, can you add details for Mr. Cool?
the ticker, strike, sell premium and expiration date.
I have owned FAST for years, my cost basis is low so I have a
large capital gain that I can take. Unfortunately, I have losses
that will wash the tax issue. I wanted to use Calls to set a sell
price in the next few months and take out my positions without any
fuss. So... I talked about with my broker and sold calls as
noted. I opened my positions without COOL Tools spreadsheets and,
more importantly to me, without the real knowledge that is
available from the site.
Unbeknownst to me, I hit not a single, but a Seeing Eye Single
into the Gap!
I sold (2) FAST 10/20/2012 44.00 at $1.91 8/22/12, which
translated into an APR of 36% and net premium of $373. And I sold
(2) FAST 11/17/2012 44.00 at $2.23 8/22/12, which translated into
an APR of 26% and net premium of $437.
I wasn't considering APR in my positions at all when I made the
sales - just making $800 cheap dollars and, of course, 400 shares
of FAST at $44.00 per share.
Now I'm using the COOL Tools and will set alerts to see if I can
close the positions before expiration with a majority of the
intrinsic value in my pocket and then probably just sell the
stock.
Analysis: I'm in a special situation, I want to capture the
profits with my tax offset. I believe that the stock price is
fully valued if not high. I don't really see the price of the
stock going much higher. So, good time to sell my positions and
do the paperwork for Uncle. I didn't run through any technical
analysis because of my profit/tax issue.
I started looking at selling a couple puts on FAST because I hold
shares in a retirement account too and wouldn't mind building my
position there IF the price is right. FAST is a great company
with a solid future, it will have a place in my portfolio for some
time to come. This trade will require more technical analysis to
find a good entry price.
I'm going to continue research on the site, open a virtual account
and practice before I make another trade - can't win games with
only Seeing Eye Singles!
Malcolm
On 9/5/2012 11:25 AM, ETANA FINKLER
wrote:
Malcolm,
Even this level of detail is helpful I think. I sort of understand
what you're saying about the FAST calls, but lost you on the
paragraph about puts.
Do you own FAST?
Did you buy it a month ago? A year ago?
So you want to liquidate it, at a strike of 44; you wrote how many
contracts for Oct and how many for Nov?
I assume this is paper trades?
Then what are you thinking about the puts for FAST? and why are
you doing both?
The more that folk write here, the more others can react to and we
can all learn from
etana
On Wed, Sep 5, 2012 at 2:12 PM, Malcolm
Myles <malcolm@mmyles.com>
wrote:
Hi
Etana,
Can't. I'm just too new at this. I've watched for over a
year the yahoo group and just found the COOL tool site.
I've made option cover calls with the goal of liquidating
an asset - FAST 10/20/2012 44, and FAST 11/17/2012 44 -
which I now understand may not have been the best route
for collecting gains. I didn't do the trades blind, but
they weren't done with an informed and educated process.
I was interested in your thought on puts for FAST a month
or so ago and have been researching the trade from the
beginning before clicking the mouse!
Thanks,
Malcolm
On 9/5/2012 10:55 AM, ETANA FINKLER wrote:
Malcolm,
Might you suggest what decisions you WOULD make if you
were to sell an option: Covered Call or Put? what option
chains have you been looking at? Strike price? premium
choices? Expiration dates. The more specific you are, I
think the better we can discuss it.
Susan, too, can you add details for Mr. Cool?
the ticker, strike, sell premium and expiration date.
Congratulations Malcom! Job well done. My only comment is that closing out the position allows you to do the trades again another day. If you truly want to sell, then just let the stock get called away (or not). Then sell. Plenty of time between now and Dec 31 to sell another successful call IMO.
From: cool_club@bivio.com [mailto:cool_club@bivio.com] On Behalf Of Malcolm Myles Sent: Wednesday, September 05, 2012 6:06 PM To: cool_club@bivio.com Subject: Re: [cool_club] Todays COOL Club Meeting Details please!
Details...
I have owned FAST for years, my cost basis is low so I have a large capital gain that I can take. Unfortunately, I have losses that will wash the tax issue. I wanted to use Calls to set a sell price in the next few months and take out my positions without any fuss. So... I talked about with my broker and sold calls as noted. I opened my positions without COOL Tools spreadsheets and, more importantly to me, without the real knowledge that is available from the site.
Unbeknownst to me, I hit not a single, but a Seeing Eye Single into the Gap!
I sold (2) FAST 10/20/2012 44.00 at $1.91 8/22/12, which translated into an APR of 36% and net premium of $373. And I sold (2) FAST 11/17/2012 44.00 at $2.23 8/22/12, which translated into an APR of 26% and net premium of $437.
I wasn't considering APR in my positions at all when I made the sales - just making $800 cheap dollars and, of course, 400 shares of FAST at $44.00 per share.
Now I'm using the COOL Tools and will set alerts to see if I can close the positions before expiration with a majority of the intrinsic value in my pocket and then probably just sell the stock.
Analysis: I'm in a special situation, I want to capture the profits with my tax offset. I believe that the stock price is fully valued if not high. I don't really see the price of the stock going much higher. So, good time to sell my positions and do the paperwork for Uncle. I didn't run through any technical analysis because of my profit/tax issue.
I started looking at selling a couple puts on FAST because I hold shares in a retirement account too and wouldn't mind building my position there IF the price is right. FAST is a great company with a solid future, it will have a place in my portfolio for some time to come. This trade will require more technical analysis to find a good entry price.
I'm going to continue research on the site, open a virtual account and practice before I make another trade - can't win games with only Seeing Eye Singles!
Malcolm
On 9/5/2012 11:25 AM, ETANA FINKLER wrote:
Malcolm, Even this level of detail is helpful I think. I sort of understand what you're saying about the FAST calls, but lost you on the paragraph about puts.
Do you own FAST? Did you buy it a month ago? A year ago? So you want to liquidate it, at a strike of 44; you wrote how many contracts for Oct and how many for Nov? I assume this is paper trades?
Then what are you thinking about the puts for FAST? and why are you doing both?
The more that folk write here, the more others can react to and we can all learn from
etana
On Wed, Sep 5, 2012 at 2:12 PM, Malcolm Myles <malcolm@mmyles.com> wrote:
Hi Etana,
Can't. I'm just too new at this. I've watched for over a year the yahoo group and just found the COOL tool site. I've made option cover calls with the goal of liquidating an asset - FAST 10/20/2012 44, and FAST 11/17/2012 44 - which I now understand may not have been the best route for collecting gains. I didn't do the trades blind, but they weren't done with an informed and educated process.
I was interested in your thought on puts for FAST a month or so ago and have been researching the trade from the beginning before clicking the mouse!
Thanks,
Malcolm
On 9/5/2012 10:55 AM, ETANA FINKLER wrote:
Malcolm, Might you suggest what decisions you WOULD make if you were to sell an option: Covered Call or Put? what option chains have you been looking at? Strike price? premium choices? Expiration dates. The more specific you are, I think the better we can discuss it.
Susan, too, can you add details for Mr. Cool? the ticker, strike, sell premium and expiration date.