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  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    The new SA website format/database connection sucks, half the comments disappear, and edits do too.

    Anyway, when you evaluate the premiums, the best way IMO to do it is to look at the ratio between the premium payment and the actual cost out of pocket to receive it.
    Feb 5, 2016. 10:42 AM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi amis1 -

    HAHA - those option premiums are crazy, and it's a 70% margin requirement stock.

    so for a $30,597.00 investment, (or $30.597/share) I'd get $3.45

    on the $3/share I invest in ETE, I got $0.44

    if the payout ratios were the same, the UVXY would pay $4.44
    Feb 5, 2016. 10:35 AM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi nflacoy -

    I sold $1 calls on the position in January rather than selling the shares as MY workout plan was for them to do this next fall if oil had not recovered by then rather than this soon.

    Last I read they had 70% or so of this years oil hedged @ $90ish. That suggested to me that they would make it until September/October OK before having to make any moves of this nature.
    Feb 5, 2016. 10:25 AM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi amis1 -

    Hmmmm. I guess the best answer is because I don't know anything about it and had never looked at it and don't currently own it.

    I don't do cash covered puts unless I want to own the stock in case it hits the strike and if it's a dividend stock you do not get the dividends selling puts.

    However the premiums on SVXY are awesome, and they are weekly (YAY!) but the margin requirements are high:

    SVXY (M) 1,000.00 $36.93 $36,930.00
    Margin requirement 60% $22,158.00 +$22,158.00

    With ETE my margin requirement is $3/share
    With BX my margin requirement is $7.90/share
    With SVXY my margin requirement is $22.158/share

    Thanks for the suggestion.

    We ought to have quite the list of possibilities if everyone keeps tossing hats in the ring!
    Feb 4, 2016. 11:48 PM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi EIP -

    My other shares have a little higher share basis, and as I mentioned above, I sold the Feb 5 $8.50 on them.

    If/when they expire tomorrow, I'll not just sell the $ Feb 12 $8.50 just because it's higher than my unadjusted cost basis, if the shares finish the week at $8.00 and they seem to be $8 on Monday I'll sell whatever calls I can get $0.50 or more on, remember that you can just roll them out if it moves higher than your strike.

    99% of the time you do not get called until the last hour of the expiration date, that gives you a lot of time to decide what to do.
    Feb 4, 2016. 03:47 PM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    I took the $ from BX and bought 10,000 more ETE for $7.50, sold the Feb 5 $7.50's for $0.44 net.

    taking the rest of the day off.
    Feb 4, 2016. 10:39 AM | Likes Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi EIP -

    The BX was called so I have some buying power today, I'll probably get more ETE on the div adjustment this am and sell tomorrows calls for the next higher strike so I'm out by tomorrow.

    I hope your trade works out for you!

    The track event was not a "race" as races get competitive and that can equal mistakes/damage. We just race around and have a good time and look at leach others cars.
    Feb 4, 2016. 08:46 AM | 1 Like Like |Link to Comment
  • The BX And ETE Trades Explained For The Ones That Need To See It To Believe It  [View instapost]
    Hi EIP -

    I will add more positions as I get the $, I don't like having all my golden egg layers in the same coop. Or something like that.

    I'm sure I'll be called on the BX this week as the Xdate is tomorrow and the stock closed higher than my strike price. If that happens I'll get back in something tomorrow at the open and resell calls for this Friday and try and double dip it.

    I'll also buy some more of the old pure dividends payers as well as cash gets freed up from paying off debts.. That's the number 1 goal to have done by November.
    Feb 4, 2016. 12:18 AM | Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    Hi Cubeless -

    Yes, that's typically what I do IF I'm trying to limit my risk to 1 week, ie I want to be called.

    or

    If I think there is a good chance the stock will "tank" (metaphorically speaking of course) then I might go the next one in the money but farther out in time, with the intent of rolling it if I was wrong.

    Right now since I have all these tax losses to back me up and because I think the recent "rally" is going to be short lived I'd prefer to limit my exposure to 1-2 weeks at a time.

    I'll do the same thing with BX when I up my position to 30,000 shares in 2 weeks.
    Feb 1, 2016. 08:36 PM | 2 Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    Hi BSG -

    Made all my trades this am - will put the screenshots up Tuesday night or Wednesday, if the week works out like I think it might, it will be an $0.82/share week X 50,000 shares.

    OR

    If I'm not called it will be a $0.69.5/share week.

    Either way I'm happy.

    MRMV of course, If I had waited to sell the calls until the afternoon I'd have made $1.02/share... Oh well, there's always next week.
    Feb 1, 2016. 06:44 PM | Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    Hi BSG -

    You might look at the charts posted already on previous trades and or summaries, they were current at the time of posting them, last week I owed 40,000 shares of ETE & 2,000 BX. Now just 10,000 ETE and 0 BX as the rest had lower strikes than $9.00 & $26 respectively.

    Tomorrow am I'll start the week with 50,000 shares of ETE after I buy 40,000 more. At the end of the week I may or may not own that many depending on this weeks price action as the Xdiv date looms and I'm sure there will be another reality check for the market sometime as all the futures are down at the moment. Either scenario I outlined above works for me.

    Since I'm not in the office taking screenshots of trades is a hassle with TeamViewer, so I'll have to wait to do that until I'm back.
    Jan 31, 2016. 08:45 PM | Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    Hi BSG -

    Gramps used to say "the only thing worse than paying taxes is not having too"

    How can I break even? I'm not following. Lets say I make $40K a month in call premiums for 50 months. (I think I'll make more but lets keep the math simple)

    $40K X 50 = $2M.

    If you count call premium income as a reduction in cost basis, I actually made nothing = I pay no taxes at all if I do not let the shares get called.

    Besides, I can wash a lot of it if I choose to let it be called with carryover tax losses from last year.

    If you treat the $2M as ordinary income then I'd pay 50% or so in taxes for state and federal combined. So what? I still net $1M for clicking my mouse a few times a week, and I don't have to actually pay until October 2017.

    Such agony.
    Jan 31, 2016. 08:36 PM | Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    I'd be upgrading you to a case of scotch.
    Jan 31, 2016. 08:27 PM | Likes Like |Link to Comment
  • HELL'S KITCHEN: My NAV May Be In The Toilet Along With The Indexes, But My Income Ought To Be About A +400% Return On NAV This Year.  [View instapost]
    Hi ltbpwmm -

    I sold it to buy the ETE as I get 2X as much income per week from actively trading the ETE options as I was getting per month from passively holding the CLM. It's all based on the calculator.

    I'll buy it back later, probably starting for the March div or on the next big dip day 31 days after I sold it. Once I hit the $50K/week income level from the call premiums my debts will disappear quickly enough to then focus on reestablishing the passive positions.

    Never get married to any stock. ;-)
    Jan 31, 2016. 12:11 PM | 1 Like Like |Link to Comment
  • “A Good Plan Violently Executed Today Is Far And Away Better Than A Perfect Plan Next Week.”*  [View instapost]
    Hi vassk -

    Everyone deserves a rep!!

    ;-)

    or at least decent coffee.

    Headed to Starbucks.
    Jan 31, 2016. 08:50 AM | Likes Like |Link to Comment
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