Correction is over

it was, but now it isn't.

Just as I predicted might possibly happen. Arguably.
 
Well, I guess that was the give back of the post election rally. Now what?
 
What we always do. Eat turkey & pie. Watch for Santa
 
NYEXPAT said:
Buy the dips and sell the rallies!
Click to expand...

That's the idea, but I do not get the timing right. :mad:

Please continue to post, so I can learn. :)

PS. I do not buy and sell much, but write covered calls during rallies. It helped salvage $10K's, but I still lost $100K's. And being greedy, I did not sell as many covered calls as I should have. For example, I may have 1000 shares of some stocks, but write covered calls on only 200 or 300 shares. Could have done more, but greed got in the way.
 
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All will be well tomorrow. Churning accounts. Big bank bonus time coming up.
 
NW-Bound said:
That's the idea, but I do not get the timing right. :mad:

Please continue to post, so I can learn. :)

PS. I do not buy and sell much, but write covered calls during rallies. It helped salvage $10K's, but I still lost $100K's. And being greedy, I did not sell as many covered calls as I should have. For example, I may have 1000 shares of some stocks, but write covered calls on only 200 or 300 shares. Could have done more, but greed got in the way.
Click to expand...

Yeah, a little heads up on the dips and rallies would really help out here!
 
NW-Bound said:
That's the idea, but I do not get the timing right. :mad:

Please continue to post, so I can learn. :)

PS. I do not buy and sell much, but write covered calls during rallies. It helped salvage $10K's, but I still lost $100K's. And being greedy, I did not sell as many covered calls as I should have. For example, I may have 1000 shares of some stocks, but write covered calls on only 200 or 300 shares. Could have done more, but greed got in the way.
Click to expand...

Nobody gets it right consistently! My win/loss percentage YTD is about 80% with an average gain of 2.3% and average loss of 1.7%. It's just a numbers game for me and I need to keep putting points on the board!

I sold the election rally right, but did not buy the dip as my indicators showed there was more selling coming. I posted that I thought I would buy today, but the futures are saying that ship has sailed!

Will just twiddle my thumbs for now until the stars align again!
 
No, I do not expect anyone to get it right all the time. I just want to hear someone who has some experience in reading market sentiment to compare notes.

As said, my goal is to collect $100K this year from covered call premium. Not there yet, but if I look at the 12-month number, meaning from 11/2017 to now, I exceeded that goal. I will keep doing this, but regret that I could have been more aggressive and picked up another $50K to $100K. Still does not make up for the drop of the share prices, but every dollar helps.

Just wrote 4 out-of-the-money contracts for Dec 21, collecting $1200. Still have more shares to write contracts on, but do not want to empty my magazine on one day. And I have two dozens contracts on various stocks/ETFs expiring this Friday, all under water and will not get assigned. This will free more shares for me to write more contracts. More, more, more...
 
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I hear you and am happy to share. Whenever, I see your posts about selling calls, I am reminded of my Father. He once told me never to sell call options as you will lose your best performing companies. There were many things he instilled in me about trading and I think that is one of the few, I strictly adhered too, along with never being a stock broker or sell side analyst! I am not criticizing you in any way, I just have a psychological block! One of my Father's contemporaries was a flamboyant,well known and very successful short specialist. I was influenced by him early on and found it more appealing than my Fathers staid value style. This is what lead me into Futures trading and my ER.
 
NYEXPAT said:
I hear you and am happy to share. Whenever, I see your posts about selling calls, I am reminded of my Father. He once told me never to sell call options as you will lose your best performing companies...
Click to expand...

It is true that in a bull market, I tend to lose my best stocks. Hence, I do not write calls on all the shares. If I get assigned, I still make money and lighten up on that stock as I still have some left.

And then, there were shares that I was lucky to lose. For example, one of them was Peabody Energy, a coal company, which was going great gun in about 2006-2007. I made money on quite a few contracts until I got assigned. I decided not to buy it back, then stopped following it and forgot about it. Later, learned on this forum that it went bankrupt (the currently traded Peabody stock is after re-org, and not the same stock).

And recently, I got assigned on my hot semiconductor stocks. Instead of letting them go, I wrote cash-covered puts below the then-current prices to buy them back. Big mistake! Gave back mucho of the gain. I now have all the shares back to write covered calls on them again (but at much lower prices). Live and learn.

I usually do not write calls on less volatile stocks, but recently switched to doing that too. The market has turned bearish, and everything drops. Very few contracts are in the danger of getting assigned now.
 
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^ you have me more confused with all the trading then I was before. LOL
 
street said:
^ you have me more confused with all the trading then I was before. LOL
Click to expand...

It's all about attempting to buy low/sell high. I do options as a mechanism to do that, with the hope that the default outcome turns out to be the same as buy-and-hold, but with more money. :)

I can provide some examples if you like.
 
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Back to the original thread title. I consider the current correction to be unresolved and will trade accordingly. I have no way of knowing when it will be resolved but will begin to buy again if/when the SPY takes out it's 300 day moving average and hopefully holds it's 12 month MA.

I should mention that the ominous double top sitting just above us has got me a bit spooked!
 
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When the VIX spikes well into the 25 - 30 range, as it rarely does, then I take a buying interest. It only did that once this year back in February. Prior to that you have to go back to 2015.
 
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COcheesehead said:
When the VIX spikes well into the 25 - 30 range, as it rarely does, then I take a buying interest. It only did that once this year back in February. Prior to that you have to go back to 2015.
Click to expand...

Well it did just cross 25 briefly on 10/24.....
 
I command & demand this correction to be over. My demands are non negotiable. Big up day tomorrow.
 
NYEXPAT said:
Back to the original thread title. I consider the current correction to be unresolved and will trade accordingly. I have no way of knowing when it will be resolved but will begin to buy again if/when the SPY takes out it's 300 day moving average and hopefully holds it's 12 month MA.

I should mention that the ominous double top sitting just above us has got me a bit spooked!
Click to expand...

By resolution, do you mean a wipeout at the bottom with high volumes, signifying many investors capitulate, cry "Uncle!", and bail to cash?

PS. And speaking of "Wipeout", do geezers here still remember The Ventures?


 
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