Double Down on WLL

If you are watching the price of oil, you’ll see it is swinging all over the place.  We doubled down on WLL this afternoon, buying at $19 and selling the OCtober 23, 19 calls for .80.  That is just north of 4% if called away.  Our Sensei feels this stock will continue to move 4-5% on a daily basis, however this is a good entry point.  We continue with the magic sauce (covered calls). 

As always consult your advisor before investing of any kind. Options are NOT suitable for all investors and people can and do lose money.

Tuesday morning at 9:55 a.m WLL is at $19.70. 

Wednesday morning the stock was down to $18.35 and we were buying additional shares and selling calls, as well as selling some of the shares we bought in that range.  The stock closed at $18.71 and we continue to believe that the daily price of OIL will provide opportunities to trade this stock and underlying options for gains.

Tuesday at 3:19 p.m we see WLL trading at 16.50, not it’s low for the day. WE await the earnings and either way we are betting on WLL for the long term. WLL was a target of an acquisition at a much higher price. Our belief is that OIL will go up soon or later and WLL is in the position to take advantage of that.  WE are covering the downside with our CALL selling and looking for a bottom. Yes, we are slightly underwater but expect this to be a double digit winner in the next 6 months.

Wednesday morning 11:15 a.m. WLL trading at $17.57. Trading at noon on Monday the 2nd of November at $17.73.

Tuesday afternoon WLL trading at $18.91.  It traded as high as $19.73 today.  We believe WLL continues to be a winner.

It’s Midnight Dude, Let’s Go To Walmart

Ok, WMT got slammed .  If not one of the largest pullbacks for WMT, it’s got to be close.  The earnings were pounded on the fact that WMT is increasing payroll, and investing in the store. Here is how we see it.  A recent visit to the store shows the store was cleaner, properly staffed, and a quick in and out. As WMT has stores all over the place we’ll soon be able to order online and pick it up. “Awesome”.

Watch for our strategy tomorrow.  We are crunching the numbers and expect the Sensei to have a great strategy designed to make you money.

As always, consult your advisor before investing of any kind.  Options are NOT suitable for all investors and people can and do lose money.

What Is OptionsDojo?

WE are an options teaching and advising platform. Our Sensei and his team look for option plays that will benefit our members.  WE teach the beginner option trader, HOW TO USE OPTIONS.  WE teach the experienced trader how to manage their option portfolio.  WE provide option plays on a regular basis.  If you want to learn to trade and benefit from options this is the place to be.  WE provide this information during and after market hours.

WE encourage you to review our past trades, educational videos, and be a part of optionsdojo. 

What Is A Contrarian?

The contrarian looks at the market and goes the opposite way, or in other words takes the other side. Here is our call (covered call) on WLL.  This is a stock that is definitely impacted with the rise and fall of oil.  This stock is down close to 70% from it’s high.  The stock has a big short position, meaning that many people are betting against the stock rising.  The positives with a lot of shorts against the stock is that if it moves contrary to the opinions it will explode to the upside when all the shorts cover.  WE however are suggesting a covered call for  October 30, selling the $20.50 calls and have bought the stock at $19.80.  The premium is $1.25 and if called away we profit another .70 cents, for a total return of $1.95 per share or slightly less then 10%.  If however it is NOT called away we lowered our basis to $18.55  While you own the stock you have the option to sell another call after this one expires.

As always consult your advisor before investing of any kind, options are not suitable for all investors. People can and do lose money.

If you look at the stock this morning 10/15 at 11:48 it’s roughly $19.20, the calls are doing their job, protecting our downside and lowering our basis.  Both calls are declining but the stock seems to be range bound between $19.20 and $19.80. It’s 1:04 pm and it’s now $19.95

This is option expiration day, Friday the 16th, currently WLL is 19.90.  at 9:51 a.m

AT this time the stock i trading at $19.95 at 1:08 pm.  We have calls sold that expire today and calls for later this month. 

BE The BANK!

The best analogy I can use is the game of black/jack.  If you are old enough to play cards you’ve probably have played the game. If you are in Vegas the bank usually wins over time. The strategy here is selling covered calls.  The market continues to fight to move in the positive direction but continues to fall.  If you are a long term investor and want to lower your cost basis, start selling covered calls against new positions you are adding to. For example we see weakness in the bank stocks this morning, we bought some BAC, JPM, and sold calls close to the money for next week.  If I can pickup 1% in a week it won’t hurt my feelings, however if not called away I’m lowering my basis and creating income. If called away I made money.  The covered call wins most of the time and by owning the stock you are the bank.  This is a conservative strategy and helps us add to our portfolio for the long term at a lower cost basis.

As always consult your advisor before investing of any kind. Options are not suitable for all investors and people can and do lose money.

Energy disappears after you use it. GO ETE

We are making the call late this evening.  We are looking at buying ETE and selling the January 17 $20 calls.  As the market is closed we will update the price as soon as the market opens.  This is a long term play and we believe you will see 20% Plus returns from this play.  ETE is an incredibly well run company and should integrate Williams company rather well.

We bought the stock yesterday and bamm, it rocketed on the open.  WE are re-evaluating our profit potential as we speak.

Friday at 2:19 pm we are still riding ETE at $22.60. This is a 20.60% rise in three trading sessions. Get on board

ok, let’s look at the current price, $23.15, place a stop-loss of $23 if you bought the stock and have not sold calls against your position.  We believe it could go to $27 if oil rises slightly.  Friday 3:57

 

Pop Pop, Fiz Fiz

We sold some puts on FB, AAPL, and SPY yesterday.  We believe that after such a vicious drop yesterday that these positions are to be owned if PUT to us.  We kept our expiration short, the PUTS expire on the 30th of this month and 10/2. 

We see that as of 8:25 the futures are positive and we will be looking to take profits if possible.  The Asian markets are still falling and placing a lot of pressure on the U.S. 

Keep your positions short and buy for the long term. 

Hold ON For The Ride!

Get the popcorn ready, have plenty to drink, and when the party is over the market will still be there.  The question is why are you investing? What is your long term objective? Are you hedged?  WE have had many corrections and this one is nothing special.  If you are a short term investor you are hoping for a bounce.  A bounce can come when we see a reason to run back to the door, such as no rate hike or a rate hike.  The outcome will be the same no matter what is decided ( in the long run), for the market dislikes uncertainty.  It will adjust to whatever the Fed decides. 

Stay tuned for updates from the Sensei.  We will update you on our recent selections.  Today was a hard day for many investors and you should not be trying to time the market. You are much better off to keep cash available to dollar cost average and spread your risks over several purchases. 

Keep an eye out for our LIVE seminar coming to you in the coming months. 

So Many Opinions

On August 10 (WLL) was upgraded by a analyst to outperform. On August 24 the same stock was downgraded by another prominent analyst.  Here is the history since the changes in opinion.  The first opinion the stock opened at $17.90 and closed at $20.11.  In the second opinion the stock opened at $13.95 and closed at $14.91.  Today the stock trades at $19.90.  It would be up from the fist opinion ( depending on what time of day you bought), and if you sold via the downgrade you would have missed $5.00 in appreciation.

The one thing both analyst had in common is that the stock moved against them for sometime.  The first opinion would have had you down 20%+ in two weeks, and the second you would have lost the upside.  This is exactly why we use options to hedge our portfolio.

Today if you bought the stock at the market price you can sell calls at the money for  Sept 11, for 7.50% premium. The premium is definitely a sign of the risks involved in this position.  The annual high for WLL is $92.63 and the low is $13.50. 

To learn how to play this stock, join today.

Watch The Movie.

This morning we purchased NFLX at 116.20 and sold the Sept 4, 116 calls for $3.95.  We also purchased NFLX at $116.79 and sold the $117 for $3.80.   We are taking the strategy to buy a stock we like and sell calls to lower our costs basis and create income.  If you calculate the premium you’ll find the following.

1. If called away we stand to make $116.00 + $3.95 or $119.95 minus our purchase of $116.20, that is a $3.75 profit.  That is 3.10+ for the week.  In our minds not bad.  

2. If the stock declines our new cost basis is $112.25.

3. Remember that selling calls limits your upside, however selling calls is a strategy we believe will benefit you in the long run. 

As always consult your advisor before investing of any kind. Options are NOT suitable for all investors and people can and do lose money.