Trading weekly options jim cramer

Day Trading Futures with Weekly Options. Day trading futures outright is one of the most difficult forms of speculation with little room for error, generally high leverage, and fierce competition. Watch this webinar to hear Carley Garner discuss some alternative approaches to day trading. She covers the newer option products such as CME’s weekly options listed on the e-mini S&P that offer day traders a lower risk and lower anxiety method of accepting price exposure. Here are some of the questions that are answered in this webinar: Should day traders use stop loss orders? Is it possible to day trade with long options? Should long options be used instead of stop loss orders? Carley Garner , Senior Market Strategist, broker, and author, is an experienced commodity broker with DeCarley Trading, a division of Zaner , in Las Vegas, Nevada. She is also the author of Higher Probability Commodity Trading and three other titles. Carley writes a monthly column for Stocks & Commodities Magazine and is a contributor to TheStreet. com and the Real Money Pro service. Her commodity market analysis is often referenced on Jim Cramer’s Mad Money on CNBC. Trading and investment carry a high level of risk, and CQG, Inc. does not make any recommendations for buying or selling any financial instruments. We offer educational information on ways to use our sophisticated CQG trading tools, but it is up to our customers and other readers to make their own trading and investment decisions or to consult with a registered investment advisor.

Get a 2-week free trial ‌‍‍‍‍ Next-gen trading & data visualization ‌‍‍‍‍ @CQGInc. Copyright © CQG, Inc., 1980-2017. All rights reserved worldwide. CQG®, DOMTrader®, TFlow®, and Data Factory™ are trademarks of CQG, Inc. Privacy. trading+weekly+options. Narrow Your Search. Tech Industry (112) Computers (78) Tech Culture (68) Mobile (67) Internet (48) Security (9) Phones (8) Software (8) Applications (5) Gadgets (5) Audio (4) Digital Media (4) Gaming (4) Sci-Tech (4) Smart Home (4) Online shoppers are liking those speedy checkout options. Manuel BlondeauCorbis via Getty Images Apple Pay so far hasn't inspired people to burn their wallets, but there's one type of newer digital payment that's gaining traction. Visa on Thursday. By Ben Fox Rubin 06 April 2017.

iPhone 7 storage options: Why 32GB is likely not enough. 1:49 Close Drag Autoplay: ON Autoplay: OFF Last September, Apple finally did away with the abysmal, 16GB model in its iPhone lineup. Starting with the iPhone 7, you have the option of 32GB, 128GB. By Jason Cipriani 23 March 2017. Apple's iPhone 7 and 7 Plus cases add fetching new color options. Enlarge Image Apple The iPhone wasn't the only Apple product that got a color update today. Along with the new red iPhone 7 and iPhone 7 Plus, Apple added new colors to its line of silicone and. By David Carnoy 21 March 2017. Accused hackers make millions off insider trading info. James MartinCNET The US district attorney charged three Chinese citizens for hacking two law firms and making more than $4 million from the information they allegedly stole. The three men. By Alfred Ng 28 December 2016.

Spotify Singles is a new weekly playlist full of covers and originals from your favorite artists. Jason Bahr, Getty Images At Spotify, Mondays are for Discover Weekly, Fridays are for Fresh Finds, and now Wednesday are for Singles. Spotify Sessions: Singles is a new weekly playlist. By Xiomara Blanco 30 November 2016. Walmart checking out more digital payment options. Francis Joseph DeanCorbis via Getty Images Walmart appears to be diving deeper into digital payments. Last week, the retailer unveiled a partnership with JPMorgan Chase to bring the bank's. By Ben Fox Rubin 08 November 2016. Mini NES is gone? Here are some Nintendo backup options. Bad news: The Mini NES is impossible to find. This year's hot retro gaming gift might be a pretty tough thing to track down outside of getting ripped off on eBay. If you can't get your hands on a. By Scott Stein 11 November 2016. Catch this gold Pikachu Pokemon trading card for $2,000. Enlarge Image The Pokemon Company While the Pokemon Trading Card Game may have been put aside for more modern endeavours, this 20 year celebratory card might be that one final must-have for the.

By Adam Bolton 26 October 2016. Spotify's 'Discover Weekly' mixtapes get some kid brothers. Spotify has always wanted to put all the music in the world at your fingertips. Now it's trying to figure out the best ways to hunt out tracks you actually like. On Tuesday, Spotify launched. By Joan E. Solsman 27 September 2016. Spotify rocks the vote with weekly blasts of election videos. Enlarge Image Spotify The sprint to dominate music streaming isn't the only race commanding Spotify's attention. The streaming music service on Tuesday launched a weekly series of video and. By Joan E. Solsman 13 September 2016. © CBS Interactive Inc. All Rights Reserved.

Cramer's Options Trading Playbook. The individual investor is back, says Cramer, who sees money pouring into the market from the pockets of the public, and the money is not just going into stocks. Cramer has seen a movement of regular investors into the options market - a subject that has been avoided on Mad Money because trading options is extremely complex and most people are better off not using options if they don't fully understand them. div > div. group > p:first-child"> But options are trading at larger and larger volumes, with 2.4 billion contracts crossing for the first 8 months of the year, up 2% from the same period in 2008. Cramer also cites a survey done by Schwab, which shows that 47% of its active, individual investors trade options regularly, up from 40% one year ago. trading+weekly+options. Narrow Your Search. Tech Industry (112) Computers (78) Tech Culture (68) Mobile (67) Internet (48) Security (9) Phones (8) Software (8) Applications (5) Gadgets (5) Audio (4) Digital Media (4) Gaming (4) Sci-Tech (4) Smart Home (4) Online shoppers are liking those speedy checkout options. Manuel BlondeauCorbis via Getty Images Apple Pay so far hasn't inspired people to burn their wallets, but there's one type of newer digital payment that's gaining traction. Visa on Thursday. By Ben Fox Rubin 06 April 2017.

iPhone 7 storage options: Why 32GB is likely not enough. 1:49 Close Drag Autoplay: ON Autoplay: OFF Last September, Apple finally did away with the abysmal, 16GB model in its iPhone lineup. Starting with the iPhone 7, you have the option of 32GB, 128GB. By Jason Cipriani 23 March 2017. Apple's iPhone 7 and 7 Plus cases add fetching new color options. Enlarge Image Apple The iPhone wasn't the only Apple product that got a color update today. Along with the new red iPhone 7 and iPhone 7 Plus, Apple added new colors to its line of silicone and. By David Carnoy 21 March 2017. Accused hackers make millions off insider trading info. James MartinCNET The US district attorney charged three Chinese citizens for hacking two law firms and making more than $4 million from the information they allegedly stole. The three men. By Alfred Ng 28 December 2016.

Spotify Singles is a new weekly playlist full of covers and originals from your favorite artists. Jason Bahr, Getty Images At Spotify, Mondays are for Discover Weekly, Fridays are for Fresh Finds, and now Wednesday are for Singles. Spotify Sessions: Singles is a new weekly playlist. By Xiomara Blanco 30 November 2016. Walmart checking out more digital payment options. Francis Joseph DeanCorbis via Getty Images Walmart appears to be diving deeper into digital payments. Last week, the retailer unveiled a partnership with JPMorgan Chase to bring the bank's. By Ben Fox Rubin 08 November 2016. Mini NES is gone? Here are some Nintendo backup options. Bad news: The Mini NES is impossible to find. This year's hot retro gaming gift might be a pretty tough thing to track down outside of getting ripped off on eBay.

If you can't get your hands on a. By Scott Stein 11 November 2016. Catch this gold Pikachu Pokemon trading card for $2,000. Enlarge Image The Pokemon Company While the Pokemon Trading Card Game may have been put aside for more modern endeavours, this 20 year celebratory card might be that one final must-have for the. By Adam Bolton 26 October 2016. Spotify's 'Discover Weekly' mixtapes get some kid brothers. Spotify has always wanted to put all the music in the world at your fingertips. Now it's trying to figure out the best ways to hunt out tracks you actually like. On Tuesday, Spotify launched. By Joan E. Solsman 27 September 2016. Spotify rocks the vote with weekly blasts of election videos. Enlarge Image Spotify The sprint to dominate music streaming isn't the only race commanding Spotify's attention. The streaming music service on Tuesday launched a weekly series of video and. By Joan E. Solsman 13 September 2016.

© CBS Interactive Inc. All Rights Reserved. Jim Cramer’s Stocks and Covered Call Writing. Locating stocks for covered call writing and put-selling is the first step as we prepare to execute these income-generating strategies. In the BCI methodology we use a three-pronged approach to screening for these underlying securities: Fundamental analysis Technical analysis Common sense principles (like minimum trading volume etc.) In my books and DVDs I encourage all option-sellers to consider other screens that meet their personal risk-tolerance and trading style. Recently, a few members have inquired about using stocks selected by Jim Cramer for his charitable trust portfolio. This gave me an idea that it would be both an enjoyable and an educational experience to set up a hypothetical portfolio derived from this resource. We must keep in mind that whatever process Cramer uses to select these stocks, they are intended for a longer-term buy-and-hold portfolio, certainly a much longer time frame than our one-month option trades. That said, it is apparent that many feel that there is a high-quality feel to his selections so why not see how we can apply our covered call writing skills to a percentage of these securities? The statistics used for this article were generated on 232016. Stocks in the charitable trust on 232016 and calculations. There were 28 stocks on the list and because the overall market was down about 9% over the past three months, most technical charts of these stocks showed bearish trend and momentum indicators.

I selected the eight stocks with the most favorable chart patterns to use in a hypothetical portfolio funded with $100,000 cash. Here are the selected securities (left column): Covered Call Writing Portfolio Selected from Jim Cramer’s Charitable Trust List. The following steps were used to determine the number of shares to be purchased in 100 share increments: Assign $12,000.00 per position understanding that some cash must be remaining for possible exit method execution Divide the price-per-share into $12,00.00 and round to the nearest 100 Calculate the total cost of purchasing the shares and adjust a position if necessary Check the options chain for premiums generated for near-the-money strikes (I used out-of-the-money) Calculate the total premiums generated from selling the call options and percentage returns. $2165.00 in premiums were generated on a cost basis of $94,992.00 resulting in a 1-month initial return of 2.3%, annualized to 27.3%. $5008.00 remains in our brokerage cash account if needed for exit method execution. Some of the total cash ($7173.00) from premium plus amount not used to buy shares can be used to buy additional shares and sell call options on those newly acquired shares as long as at least $2000.00 remains in the cash account if position management opportunities arise. Purple field - The breakeven column subtracts the total option premium from current market value and shows the point below which we may start losing money. Brown field – This column shows the time value initial return for each position. As a whole, these returns calculate to a portfolio initial return of 2.3% for the one month. Yellow column – Since we sold out-of-the-money strikes we have the potential for additional profits from share appreciation of between 1% – 2% as shown in the chart above. There are many resources that can be used to locate stocks for option-selling based on personal risk tolerance and trading style. In my view, the BCI methodology is one of the elite ways to locate option-selling stocks but it certainly isn’t the only resource where success can be achieved.

In this article we investigated stocks from Jim Cramer’s charitable trust and demonstrated that these securities do offer significant initial returns. Of course, no matter where a stock is located, once a position is entered we must be prepared with our exit method arsenal as position management is just as important as stock and option selection. The Blue Collar Investor presents The Blue Hour concept inspired by this photo by Scott Evers. The blue hour is the period of twilight during dawn each morning and dusk each evening when the sun is a significant distance below the horizon and the residual, indirect sunlight takes on a predominantly blue hue (typically 40 minutes in length). The BCI team will use this theme to provide additional educational content to our members in the form of webinars, Q&A, interviews with experts and much more. Our initial 30 – 40-minute trial run will be held on July 28th at 9 PM ET in the form of a webinar with Q&A and additional comments. I will be hosting the webinar and Barry Bergman, the BCI Director of Research will be responding to your questions simultaneously. This event will be free to the first 50 premium members who sign up and will be recorded and available on the premium member site and free to all our premium members. We will be providing a series of these educational events to our premium members throughout the year. Our team is in the process of developing a landing and signup page for The Blue Hour and once ready we will open up registration. Ultimately, the development and format of The Blue Hour will depend on your suggestions and feedback. American Association of Individual Investors.

Research Triangle Chapter. RaleighDurham, North Carolina. Minutes of the April Federal Open Market Committee meeting demonstrated that the Fed would like to raise rates at either its June or July meeting, conditions permitting 2nd quarter US growth looks stronger while the April US employment report was slightly weaker than forecast two weeks ago as several recent data points show an increase in both economic activity and inflation US industrial production rose 0.7% in April The Consumer Price Index rose 0.4%, the strongest monthly reading in more than three years Housing starts rose at a stronger-than-expected rate of 6.6% in April Building permits rose 3.6% from the previous month Japan reported a robust 1.7% annualized rate of growth in gross domestic product in the first quarter of the year Tentative deal to relieve the Puerto Rico debt crisis reached The US Department of the Treasury and Republicans in the US of Representatives House have reached a tentative deal to set up a financial control board to take charge of Puerto Rico’s debt crisis No US federal funds are being committed as part of the package. Saudi credit rating cut by Moody’s Moody’s Investors Service cut its rating on Saudi Arabia’s debt to A1 from Aa3 However, recently announced economic reforms could lead to a higher rating over time, the agency said. China reported somewhat weaker than expected economic data this week The European Central Bank’s bond buying program is beginning to run up against purchase caps in government bonds issued by some of its member countries Philippines dislodges China as Asia’s fastest-growing economy as economic growth in the Philippines expanded at 6.9% in the first quarter, the fastest pace in that country since the 1970s China’s growth slipped to a 6.7% annual rate in the same quarter. A meeting of G7 finance ministers and central bankers concludes Saturday, May 21st in Japan Japan releases trade data on Monday, May 23rd Flash purchasing managers’ indices are released globally on Monday, May 23rd Germany’s Ifo releases its business climate survey on Wednesday, May 25th Q1 UK gross domestic product is reported on Wednesday, May 25th Revised Q1 US GDP data are released on Friday, May 27th. IBD : Uptrend under pressure. GMI : 06- Sell signal since market close of May 4th. BCI : Neutral selling an equal number of in-the-money and out-of-the-money strikes. WHAT THE BROAD MARKET INDICATORS (S&P 500 AND VIX) ARE TELLING US. Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog..

He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies. Google + To send us an email, contact us here. Subscribe to our e-mail newsletter or RSS feed to receive updates. Contact us by phone at 866-892-2187. Additionally you can also find us on any of the social networks below: 35 Responses to “Jim Cramer’s Stocks and Covered Call Writing” I, m trading a VIRTUAL account with Optionxpress . On 510 I purchased 800 shares of GDX @ 24.04 and STO 8 lots of the MAY 24 STRIKE. On expiration Friday GDX CLOSED @ 24.05 AND I JUST ASSUMED MY 800 SHARES OF GDX WOULD HAVE BEEN CALLED AWAY(ASSIGNED). TO MY SURPRISE WHEN I REVIEWED MY VIRTUAL ACCOUNT ON SATURDAY 521 GDX HAD NOT BEEN CALLED AWAY BUT REMAINED AN OPEN POSITION IN MY ACCOUNT. I HAD SEVERAL OTHER POSITIONS WHICH UNDERSTANDABLY HAD BEEN ASSIGNED BUT NOT THE GDX POSITION, CAN YOU PLEASE EXPLAIN WHY THIS HAPPENED. This is a head-scratcher. I’ll respond with my best (educated) guess. There is always the remote chance of a platform system error but probably not. That aside, the rule we go by is known as “exercise by exception” sometimes mistakenly called “automatic exercise”.

“Exercise by exception” is an administrative procedure used by Options Clearing Corporation (OCC) to expedite the exercise of expiring options by clearing members. In this procedure, the OCC exercises options that are in-the-money by $0.01 or more unless there are other specified threshold amounts or unless the clearing member submits instructions not to exercise these options. Since the $24 strike is in-the-money by $0.05, we would expect exercise unless the threshold for this virtual platform is greater than $0.05. I suggest calling Optionxpress and ask where the threshold is set and if less than $0.05 ask why exercise did not occur. If different from my thoughts, please let me know. This week’s Weekly Stock Screen And Watch List has been uploaded to The Blue Collar Investor Premium Member website and is available for download in the “Reports” section. Look for the report dated 052016. Be sure to check out the latest BCI Training Videos and “Ask Alan” segments. You can view them at The Blue Collar Investor YouTube Channel. For your convenience, the link to The Blue Collar Investor YouTube Channel is: Barry and The Blue Collar Investor Team. I brought stocks of BSX($22.15) and MPW($14.00) last week after reviewing your list. This week both of them failed to make it. I have not yet sold the options, and was hoping to do it this week.

Now should I sell them or should I go ahead and sell call options for June 17th? If we brought a stock which passed last week but failed this week and we haven’t sold the call option yet, should we sell the stock or should we go ahead and sell call option? Two points relating to your scenario: 1- When buying stocks for purposes of selling covered calls, it is best to write the call when the shares are purchased such that the returns meet our initial goals. 2- Once a covered call position is entered, it is managed as described in my books and DVDs NOT based on its removal from our most current stock or ETF reports. The reason a stock will be removed from our list of elite-performers between earnings reports is usually because of a technical breakdown as shown below for BSX where there is negative volume divergence (see pages 69 – 71 of the Complete Encyclopedia Classic) and bearish MACD Histogram and Stochastic oscillator signals. If this were a stock we decided to use in our current portfolio for covered call writing, we would favor in-the-money strikes for the additional downside protection. CLICK ON IMAGE TO ENLARGE & USE THE BACK ARROW TO RETURN TO BLIOG. Thanks Alan, learning.. I sold out BSX and MPW this morning without any profit or loss. I traded them with NVDA and CBPX, 100 shares each. I am beginner and learning, so don’t want to risk too much. Now trying to do call options and see where it goes. Another question, some of the stocks, say MIDD, seems very good but expensive for novice like me. If I buy 100 shares, it will be in access of 12K. What method will you recommend if you don’t have too much cash but have good vibe about a company?

Buy to open ?? One low-cost way to fund a covered call portfolio is to use ETFs, a method I use in my mother’s portfolio. Here is a link to an article I published on this topic: Thanks Alan. Good advice. I brought some XME, aren’t doing too well but I do have some covered calls on them. Hopefully, they will recover. I do feel China slowdown is over blown, sometime by end of this year or early part of next year, the market should see uptick in commodities, specially energy and iron ore. How often are you planning to do these blue hour seminars…love the idea. Our plans are to host a minimum of 6 and possibly up to 10 of these webinarsinterviewsQ&As per year depending on member feedback. My name is Chris and i live in Sydney Australia and am interested in further education regarding your strategies, have written some covered calls here in Australia but the premiums are just not good enough. can you suggest what training is offered with your group and some options. Best Regards Chris.. We have many members from Australia…glad to have another.

Start with our free beginners Corner tutorial: Our most popular and comprehensive educational package: For 1-on-1 mentoring: Membershipstock and ETF reports and much more: For free calculators and other free resources: Welcome to the BCI community. Would you consider this chart a “no go” because: 1 The MACD is negative. 2. The SLO STO is below the trigger line. Would (since they are barely “negative”), watch it, because: 1. 20Day EMA is above 100Day EMA. 2. Price is above 20Day EMA. 3. At this time their is positive volume. Thanks in advance. (CLICK ON IMAGE TO ENLARGE & USE THE BACK ARROW TO RETURN TO BLOG) Assuming this security meets our fundamental and common sense screening requirements, I would view this chart as having mixed technicals and would favor in-the-money strikes if I included it in my current portfolio. What is the best procedure Once my original strike price has expired and my stock is below its originsl purchase price lets say by $6.00, would it be better to sell the stock take the money and start over, or stay with the stock and try to make some additional writes hoping not to be called at a strike so off its original strike price? A $6 decline in share value would be no big deal for a $200 stock but a huge deal for a $50 stock (3% vs 12%). If it were a $50 stock and it is still in our portfolio, we would have rolled down at least one time maybe more to mitigate losses and now be at a lower cost basis.

Now, after expiration the actual stock doesn’t matter to us, it’s the cash invested in that stock that does matter a lot. We ask ourselves “where is that cash best placed” Depending on the percentage decline, chart technicals and comparison to overall market performance we make our decisions. Every case must be evaluated on its own merit but in a general sense that $50 stock will usually be eliminated and replaced while the $200 stock will probably retain a spot in our portfolio. Jim Cramer has not taught me as much as you have but I find him a sharp market mind and wonderful entertainer, His portfolio is always relevant. Thanks for a great article! It underscores a more important point: no matter whether you use Cramer, the Dividend Aristocrats or the top S&P holdings if you hold high liquidity name stocks and sell calls you will enhance your yield. Stocks suffer herd mentality. Studies show 75% follow the trend. Or does the trend follow 75% of the stocks :)? In any case, lock step is real in both directions.

There will always be exceptions. You and Barry are skilled at identifying them! I have found if I hold a batch of stocks I know, use the option selling discipline you teach, steer around earnings and div dates and flex my strike prices I get through the prairie dust the herd kicks up more often than not :). – Jay. The only question is : Who is the herd? Hedge funds? Mutual funds ? Institutionals ? Retail ? Everybody ? Pogo the possum once said. “We have met the enemy and he is us.” So I suspect we are all indicted in the crime :).

– Jay. Yes Jay, we are, but as Alan says in his books, we little guys don’t move the needle. So, the herd of whales is always in charge and move slowly. The herd of sharks moves fast, and takes big chunks. The small fish hide in caves. Sardines get cought in the net. That’s a skillful answer to a difficult question. I don’t understand ex dividend date influence on covered calls. Help. Here is a link to an article I published on this topic: Had a great time speaking to an outstanding group of high school finance students at Syosset HS in NY. CLICK ON IMAGE TO ENLARGE & USE THE BACK ARROW TO RETURN TO BLOG. I’ve been trading Covered calls in Australia for a couple of years.

My early training taught me to use a protective Put (insurance) to manage risk. I know you prefer to use portfolio management instead to do this in order to receive a better ROO but you are awake to watch what’s happening throughout the day where as in Australia we are asleep. Do you have any thoughts on this? There is absolutely nothing wrong with using protective puts. Lower returns are accepted for the protection against catastrophic loss. I prefer more proactive position management but that is more a trading style and not a “right or wrong” commentary. If we cannot be in front of our computers during trading hours (most Blue Collar Investors) we can also set limit orders immediately after entering a covered call trade, instructing our brokers to buy back the options at 20%10%. From there we can decide how to manage the long stock position (sell a lower strike, wait to “hit a double”, sell the stock etc.) I hope you are doing well …. I have a question. Since a few weeks I trade now the covered calls in combination of verticals. You get les premiums but the upside is open. I write a covered call and add a long call above the call I sold. Therefore I have no problem when the stock rally…..of course I have less downside protection.

I use this method on stocks I will keep for years in my account (t, so, duk, mo, vz etc). Your thoughts on this while you never spoke or rode in your books about this. Have a nice day. Marc from Luxbg Europe. It’s that “of course I have less downside protection” part that doesn’t work for me. The long call aspect requires that Delta overcomes Theta. Although there is opportunity to win big, there is an initial disadvantage that I am not comfortable with. This does not make it wrong for everybody. Naked option trading may be appropriate for those with a higher risk-tolerance than I have. My way isn’t the only way. We have some members who trade covered calls in their main investment portfolios and then have a small, higher-risk portfolio for trading naked options…perhaps using non-essential cash. This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site.

The report also lists Top-performing ETFs with Weekly options. For your convenience, here is the link to login to the premium site: NOT A PREMIUM MEMBER? Check out this link: Alan and the BCI team. I have accumulated a number of shares of SPY. I have lumped my bookkeeping for covered calls, cash covered puts and an occasional iron condor together to come up with a cost basis. It is substantially below the current price of SPY. My question is what strikes make the most sense to sell given my situation? What I’ve done the last few months is to sell some slightly in the money, some at the money and some out of the money. The first step is to define our goals. It appears that in this case you want to generate as much income as possible while not having the options exercised. We also must decide what minimum returns we are looking to generate to make this method worth our time. Now , for SPY, selling a near-the-money strike will generate a 1-month initial profit of about 1%. The deeper out-of-the-money we go the less likely is exercise and the lower are our returns. Let’s say we are seeking a 1-month 0.5% minimum return We look at an options chain for the deepest out-of-the-money strike that returns about $1 and now we have found our most appropriate strike.

We also must be prepared to roll the option if in-the-money as expiration approaches. Question, say I buy a 100 stocks, 1 contract for $20. I have also sold out-of-money option for 0.60 with strike price of $22. My contract expires on June 17, which is Friday. On June 17th morning, lets say stock price is 20.50, and I know my contract will expire. Now, I don’t want to wait till Monday morning. I know by end of the day my contract will expire. So should I just sell the stock at 20.50 and wait till Monday morning, or should I wait till Monday and then sell my stock @whatever price. Buying back my options before selling might entail some fees ?? Issue is what should I do on the expiration day, when I don’t want to take a chance till Monday morning as some weekend news might crash the market and my stock will open at say $19 ? If a strike is out-of-the-money as expiration approaches and there is concern of a potential share decline over the weekend, we buy back the short call first and then sell the stock at market value. The additional cost to close over the commission to sell the stock is the time value remaining on the OTM strike + the commission, say about $15.00 per contract. That $15.00 can be saved by waiting until Monday after the option expires worthless and shares open higher, lower or the same as the pricing that existed on late Friday. I ran a spreadsheet on the Cramer transactions, using the March 4 expiration day closing price. 5 of the stocks paid dividends during the period (WFC was purchased on the ex-date). These would be received by a buy and hold buyer or a covered call writer.

I assumed covered stocks were held to expiration. Covered Call profit was (Lower of strike or expiration value)minus (stock cost less premium received) plus dividend=$2,105 or 2.3%. Buy and Hold Profit was (Value on expiration day)minus (Stock Cost) plus dividend=$3,628 or 3.8%. It didn’t seem to matter whether a dividend was paid or not. The Covered Call Portfolio was, of course, less volatile. I didn’t simulate management. If I had been able to, what might I have done in actual practice to bring the Covered Call return closer to Buy and Hold? There are 3 required skills for covered call writing. Stock selection, option selection and position management. Let’s review the exercise you are sharing (and thanks for taking the time to do it): Stock selection: We are using a portfolio of Cramer stocks with decent chart patterns. His selection process is based on a longer-term buy-and-hold method that may not be the best for 1-month covered call writing although I did think it a fun exercise since many of our members watch his CNBC program. I will assume, though, a solid portfolio to start with. Option selection: The past 3 months have been relatively bullish with many whipsaws…the S&P 500 up about 7%. Deeper out-of-the-money strikes would have generated the highest returns. I would lean in this direction when charts show bullish signals which was the stating point I used when selecting this portfolio.

Position management: I can’t understate how important it is to take advantage of the whipsaws in price movement. Buying back and re-selling options, closing positions that have maximized their potential returns etc. will elevate returns to the highest levels and set us apart from all other covered call writers. Thanks for sharing. Subscribe To Our Free Newsletter. New BCI Video Membership. All New Digital Products Now Available. Video Membership ONLY $20pm Click Here for more details. %10 holiday discount – Use this code at checkout: Holiday10. Orlando Money Show. February 8, 2018 @ 9:00 am – February 11, 2018 @ 5:00 pm. POINT, or Phoenix Options Investors Networking Traders, March 2, 2018 @ 6:30 pm – 9:00 pm. Arbitrage: Part II December 23, 2017 Ask Alan #141 – “The Rationale for In-The-Money Strikes” December 20, 2017 Arbitrage: Part I December 16, 2017 Should Ex-Dividend Dates Be Treated the Same as Earnings Report Dates? December 9, 2017 Price Gaps and the Need for Exit method Execution December 2, 2017. The New Stock Market - Algorithmic and High Speed Trading January 15, 2011 Options That Expire Weekly and Conventional Expiration Cycles September 26, 2010 Why the 3% Guideline Applies to Puts but Not to Call Options July 15, 2017 Earnings Pre-Announcements Explained and Categorized July 22, 2017 Tax Implications of Writing Covered Calls against Long-Term Holdings July 8, 2017.

Jay Thanks Spin, Your memory serves you well: they spindr0 Jay, I only know the basics about VIX and rela Alan Ellman January 2018 edition of our Blue Chip (Dow 30) Rep Justin P. Hi Roni, Yes I've not been focussing on OI roni Sorry, forgot to state expiry. It is for 011920. Premium Membership. Recommended Investing Links. About BCI. Recent Posts. To send us an email, contact us here. Subscribe to our e-mail newsletter or RSS feed to receive updates. Contact us by phone at 866-892-2187. Additionally you can also find us on any of the social networks below: Trading weekly options jim cramer Jim Cramer is the face of CNBC and his Mad Money show is extremely popular. He lets viewers know that he is the biggest shareholder of TheStreet. com which offers a dozen equity picking services.

Action Alerts and Stocks Under $10 are highly subscribed. What he doesn't mention on his CNBC show is option trading, but he does offer an option picking service via TheStreet. com called Option Alerts headed up by Jud Pyle. In addition to the email alerts, the service provides a weekly outlook on options that touches on opportunities they see developing for the week ahead and they also assess how the previous week's investments are progressing. As a subscriber to other TheStreet. com services, I was extended a discount to the service. The last time I checked, they were offering a two week trial to Option Alerts at TheStreet. com and it costs $349.00 for the year. This is a very inexpensive rate. I used the service when Steven Smith was the Editor. Jud Pyle has since replaced him -- See Updated Review here with Jud Pyle at the helm. The rest of this review is what I originally wrote with Steven Smith in charge of Cramer's Options Alerts. Some of you may know Jud from the video spots he does for ONN.

tv. His show on options is gaining traction, but I stopped using the service long before Jud Pyle became the editor. I am not sure if his show has turned viewers into subscribers, but I suspect that it would. This service provided recommendations before and during market hours. They suggested outright purchases as well as spreads. What surprised me the most was how little volume followed the email picks. (continued) Trading weekly options jim cramer Weekly options have become a stalwart among options traders. Unfortunately, but predictable, most traders use them for pure speculation. But thatЂ™s okay. As most of you know, I mostly deal with high-probability options selling strategies. So, the benefit of having a new and growing market of speculators is that we have the ability to take the other side of their trade. I like to use the casino analogy. The speculators (buyers of options) are the gamblers and we (sellers of options) are the casino. And as well all know, over the long-term, the casino always wins.

Why? Ђ¦because probabilities are overwhelmingly on our side. So far, my statistical approach to weekly options has worked well. I introduced a new portfolio (we currently have 4) for Options Advantage subscribers in late February and so far the return on capital has been slightly over 25%. IЂ™m sure some of you may be asking, what are weekly options. Well, in 2005, the Chicago Board Options Exchange introduced ЂњweeklysЂќ to the public. But as you can see from the chart above, it wasnЂ™t until 2009 that the volume of the burgeoning product took off. Now ЂњweeklysЂќ have become one the most popular trading products the market has to offer. So how do I use weekly options? I start out by defining my basket of stocks. Fortunately, the search doesnЂ™t take too long considering weeklys are limited to the more highly-liquid products like SPY, QQQ, DIA and the like.

My preference is to use the S&P 500 ETF, SPY. ItЂ™s a highly-liquid product and IЂ™m completely comfortable with the riskreturn SPY offers. More importantly, IЂ™m not exposed to volatility caused by unforeseen news events that can be detrimental to an individual stocksЂ™ price and in turn, my options position. Once IЂ™ve decided on my underlying , in my case SPY, I start to take the same steps I use when selling monthly options. I monitor on a daily basis the overboughtoversold reading of SPY using a simple indicator known as RSI. And I use it over various timeframes (2), (3) and (5). This gives me a more accurate picture as to just how overbought or oversold SPY is during the short-term. Simply stated, RSI measures how overbought or oversold a stock or ETF is on a daily basis. A reading above 80 means the asset is overbought, below 20 means the asset is oversold. Again, I watch RSI on a daily basis and patiently wait for SPY to move into an extreme overboughtoversold state. Once an extreme reading hits I make a trade. It must be pointed out that just because the options I use are called Weeklys, doesnЂ™t mean I trade them on a weekly basis. Just like my other high-probability strategies I will only make trades that make sense. As always, I allow trades to come to me and not force a trade just for the sake of making a trade.

I know this may sound obvious, but other services offer trades because they promise a specific number of trades on a weekly or monthly basis. This doesnЂ™t make sense, nor is it a sustainable and more importantly, profitable approach. Okay, so letЂ™s say SPY pushes into an overbought state like the ETF did on the 2 nd of April. Once, we see a confirmation that an extreme reading has occurred we want to fade the current short-term trend because history tells us when a short-term extreme hits a short-term reprieve is right around the corner. In our case, we would use a bear call spread. A bear call spread works best when the market moves lower, but also works in a flat to slightly higher market. And this is where the casino analogy really comes into play. Remember, most of the traders using weeklys are speculators aiming for the fences. They want to take a small investment and make exponential returns. Take a look at the options chain below. I want to focus on the percentages in the far left column. Knowing that SPY is currently trading for roughly $182 I can sell options with a probability of success in excess of 85% and bring in a return of 6.9%. If I lower my probability of success I can bring in even more premium, thereby increasing my return. It truly depends on how much risk you are willing to take. I prefer 80% or above.

Take the Apr14 187 strike. It has a probability of success (Prob. OTM) of 85.97%. Those are incredible odds when you consider the speculator (the gambler) has less than a 15% chance of success. ItЂ™s a simple concept that for some reason, not many investors are aware of. One Simple System to Win Nearly 9-out-of 10 Trades. Regular investors dream about these kinds of opportunities Ђ“ but few ever believe theyЂ™re real. Like dragons, the idea of making money on nearly 9-out-10 trades seems the stuff of legendЂ¦ or if real, reserved exclusively for the marketЂ™s slickest traders. Yet, itЂ™s very real. And easily within the reach of regular investors. You can learn all about this safe, simple method Ђ“ and the next three trades shaping up right now Ђ“ by clicking this link here. Slay your own dragon Ђ“ Go here now. . trading+weekly+options. Narrow Your Search. Tech Industry (112) Computers (78) Tech Culture (68) Mobile (67) Internet (48) Security (9) Phones (8) Software (8) Applications (5) Gadgets (5) Audio (4) Digital Media (4) Gaming (4) Sci-Tech (4) Smart Home (4) Online shoppers are liking those speedy checkout options.

Manuel BlondeauCorbis via Getty Images Apple Pay so far hasn't inspired people to burn their wallets, but there's one type of newer digital payment that's gaining traction. Visa on Thursday. By Ben Fox Rubin 06 April 2017. iPhone 7 storage options: Why 32GB is likely not enough. 1:49 Close Drag Autoplay: ON Autoplay: OFF Last September, Apple finally did away with the abysmal, 16GB model in its iPhone lineup. Starting with the iPhone 7, you have the option of 32GB, 128GB. By Jason Cipriani 23 March 2017. Apple's iPhone 7 and 7 Plus cases add fetching new color options. Enlarge Image Apple The iPhone wasn't the only Apple product that got a color update today. Along with the new red iPhone 7 and iPhone 7 Plus, Apple added new colors to its line of silicone and.

By David Carnoy 21 March 2017. Accused hackers make millions off insider trading info. James MartinCNET The US district attorney charged three Chinese citizens for hacking two law firms and making more than $4 million from the information they allegedly stole. The three men. By Alfred Ng 28 December 2016. Spotify Singles is a new weekly playlist full of covers and originals from your favorite artists. Jason Bahr, Getty Images At Spotify, Mondays are for Discover Weekly, Fridays are for Fresh Finds, and now Wednesday are for Singles. Spotify Sessions: Singles is a new weekly playlist. By Xiomara Blanco 30 November 2016. Walmart checking out more digital payment options.

Francis Joseph DeanCorbis via Getty Images Walmart appears to be diving deeper into digital payments. Last week, the retailer unveiled a partnership with JPMorgan Chase to bring the bank's. By Ben Fox Rubin 08 November 2016. Mini NES is gone? Here are some Nintendo backup options. Bad news: The Mini NES is impossible to find. This year's hot retro gaming gift might be a pretty tough thing to track down outside of getting ripped off on eBay. If you can't get your hands on a. By Scott Stein 11 November 2016. Catch this gold Pikachu Pokemon trading card for $2,000. Enlarge Image The Pokemon Company While the Pokemon Trading Card Game may have been put aside for more modern endeavours, this 20 year celebratory card might be that one final must-have for the. By Adam Bolton 26 October 2016.

Spotify's 'Discover Weekly' mixtapes get some kid brothers. Spotify has always wanted to put all the music in the world at your fingertips. Now it's trying to figure out the best ways to hunt out tracks you actually like. On Tuesday, Spotify launched. By Joan E. Solsman 27 September 2016. Spotify rocks the vote with weekly blasts of election videos. Enlarge Image Spotify The sprint to dominate music streaming isn't the only race commanding Spotify's attention. The streaming music service on Tuesday launched a weekly series of video and. By Joan E. Solsman 13 September 2016. © CBS Interactive Inc. All Rights Reserved. Trading weekly options jim cramer The design consists of a circular stair which leads the visitor up to a height that allows an unhindered view of the horizon. The path makes a continuous movement and thereby draws on the context of the heavy infrastructural surroundings of ring road and tram track. While a tram stop presents the end or. Designed by Shma the Vertical Living Gallery is a Living Wall project commissioned by Sansiri, an urban residential developer.

The role of the project was to provide the image of a new life style through the sales office building of Sansiri. Australia has a new National Arboretum. Located in Canberra, this important cultural facility is host to 100 forests of rare and endangered trees from around the world. High on the hill sits the pod playground. The opportunity to design a play space as part of the 100 forests facility offered an opportunity to creatively engage. Caixa Forum's living wall is one of the largest in the world and the only one in Madrid. Designed by Patrick Blanc, the lush botanical work of art was installed in 2006 using his own patented system 'Le Mur V©g©tal' and it was completed in 2007. The project was commissioned as part of the. Add pizzazz to your garden experience with these lovely Safari animal planters designed by Kenneth Cobonpue for Hive. Naturally crushed stones are stone cased in molds of towering giraffe and lovable hedgehog molds. Jim Cramer Trading Options. Submit.

About. Get The Newsletter. Copyright ©2015 Shapedscape Media Inc. All rights reserved. trading+weekly+options. Narrow Your Search. Tech Industry (112) Computers (78) Tech Culture (68) Mobile (67) Internet (48) Security (9) Phones (8) Software (8) Applications (5) Gadgets (5) Audio (4) Digital Media (4) Gaming (4) Sci-Tech (4) Smart Home (4) Online shoppers are liking those speedy checkout options. Manuel BlondeauCorbis via Getty Images Apple Pay so far hasn't inspired people to burn their wallets, but there's one type of newer digital payment that's gaining traction. Visa on Thursday. By Ben Fox Rubin 06 April 2017.

iPhone 7 storage options: Why 32GB is likely not enough. 1:49 Close Drag Autoplay: ON Autoplay: OFF Last September, Apple finally did away with the abysmal, 16GB model in its iPhone lineup. Starting with the iPhone 7, you have the option of 32GB, 128GB. By Jason Cipriani 23 March 2017. Apple's iPhone 7 and 7 Plus cases add fetching new color options. Enlarge Image Apple The iPhone wasn't the only Apple product that got a color update today. Along with the new red iPhone 7 and iPhone 7 Plus, Apple added new colors to its line of silicone and. By David Carnoy 21 March 2017. Accused hackers make millions off insider trading info. James MartinCNET The US district attorney charged three Chinese citizens for hacking two law firms and making more than $4 million from the information they allegedly stole.

The three men. By Alfred Ng 28 December 2016. Spotify Singles is a new weekly playlist full of covers and originals from your favorite artists. Jason Bahr, Getty Images At Spotify, Mondays are for Discover Weekly, Fridays are for Fresh Finds, and now Wednesday are for Singles. Spotify Sessions: Singles is a new weekly playlist. By Xiomara Blanco 30 November 2016. Walmart checking out more digital payment options. Francis Joseph DeanCorbis via Getty Images Walmart appears to be diving deeper into digital payments. Last week, the retailer unveiled a partnership with JPMorgan Chase to bring the bank's. By Ben Fox Rubin 08 November 2016. Mini NES is gone? Here are some Nintendo backup options.

Bad news: The Mini NES is impossible to find. This year's hot retro gaming gift might be a pretty tough thing to track down outside of getting ripped off on eBay. If you can't get your hands on a. By Scott Stein 11 November 2016. Catch this gold Pikachu Pokemon trading card for $2,000. Enlarge Image The Pokemon Company While the Pokemon Trading Card Game may have been put aside for more modern endeavours, this 20 year celebratory card might be that one final must-have for the. By Adam Bolton 26 October 2016. Spotify's 'Discover Weekly' mixtapes get some kid brothers. Spotify has always wanted to put all the music in the world at your fingertips. Now it's trying to figure out the best ways to hunt out tracks you actually like. On Tuesday, Spotify launched. By Joan E. Solsman 27 September 2016. Spotify rocks the vote with weekly blasts of election videos.

Enlarge Image Spotify The sprint to dominate music streaming isn't the only race commanding Spotify's attention. The streaming music service on Tuesday launched a weekly series of video and. By Joan E. Solsman 13 September 2016. © CBS Interactive Inc. All Rights Reserved.