Great Trading Ideas

FE FE

FEBRUARY 12th 2015

 

There is a lot of activity in the market. We don’t pretend to cover it all. There are sites-aplenty to do that. We comment from time to time on news or other commentary that makes us better investors and traders.

1.Months ago I commented on Apple (AAPL), right after their seven for one stock split. I liked it then and commented that it was a $200 stock—even after the split. I reiterate my belief that the company is doing well. Today Carl Icahn, the famous or infamous investor commented on Apple and set a price target at $216. Now, while I agree with him, I acknowledge the details are a bit skimpy. When? Is the major question. I am good at the what, but lack in the when department. All in all, it’s a great company, making tons of money. This is a good one to watch. I’m not big on doing straight options, as many of my students are not that good at them. This is one reason I love covered calls so much. Anyway, I paper traded AAPL, and that option has doubled. Watch there post as we move along.

  1. I’ve been watching the DIA. This is a trust that trades as an ETF. The trust owns all of the Dow 30 stocks. Here is an assignment. Look at these charts of DIA. Note that it trades at 1/100th of the DJIA. If the Dow is 17,940, DIA will be at $179.40 give or take a few pennies. This stock’s options are in $1 and now even 50¢ increments. Look at the last month, even the last Six months. Do you see a rolling pattern? I like this and over the years I’ve made some good money. Calls on the upside, puts when it goes down. Right now I’m tempted to buy the February $178.50 put.
  2. Here’s on observation on trading this type of trade on the DIA. Based on the strike price you choose, for every 100 point move in the Dow, there is a 50¢ move in the option. It’s not perfect. For example, of you buy a call or put, near the money, say for $1.40, and the DJIA moves up or down 100 points, your option should be going for $1.90 or so. Paper-Trade this a see for yourself.
  3. There is quite a stir about Google raising money ($5,000,000.000) in a bond offering. They’re taxed too much to repatriate their billions of dollars. It’s cheaper for them to get money at less than 1% interest, than pay taxes. Our Government should be embarrassed. There are trillions of dollars help offshore waiting for the government to wise-up.

Keep in touch.

 

 

There is a lot of activity in the market. We don’t pretend to cover it all. There are sites-aplenty to do that. We comment from time to time on news or other commentary that makes us better investors

and traders.

 

  1. Months ago I commented on Apple (AAPL), right after their seven for one stock split.

I liked it then and commented that it was a $200 stock—even after the split. I reiterate my belief that the company is doing well. Today Carl Icahn, the famous or infamous investor commented on Apple and set a price target at $216. Now, while I agree with him, I acknowledge the details are a bit skimpy. When? Is the major question. I am good at the what, but lack in the when department. All in all, it’s a great company, making tons of money. This is a good one to watch. I’m not big on doing straight options, as many of my students are not that good at them. This is one reason I love covered calls so much. Anyway, I paper traded AAPL, and that option has doubled. Watch there post as we move along.

  1. I’ve been watching the DIA. This is a trust that trades as an ETF. The trust owns all of the Dow 30 stocks. Here is an assignment. Look at these charts of DIA. Note that it trades at 1/100th of the DJIA. If the Dow is 17,940, DIA will be at $179.40 give or take a few pennies. This stock’s options are in $1 and now even 50¢ increments. Look at the last month, even the last Six months. Do you see a rolling pattern? I like this and over the years I’ve made some good money. Calls on the upside, puts when it goes down. Right now I’m tempted to buy the February $178.50 put.
  2. Here’s on observation on trading this type of trade on the DIA. Based on the strike price you choose, for every 100 point move in the Dow, there is a 50¢ move in the option. It’s not perfect. For example, of you buy a call or put, near the money, say for $1.40, and the DJIA moves up or down 100 points, your option should be going for $1.90 or so. Paper-Trade this a see for yourself.
  3. There is quite a stir about Google raising money ($5,000,000.000) in a bond offering. They’re taxed too much to repatriate their billions of dollars. It’s cheaper for them to get money at less than 1% interest, than pay taxes. Our Government should be embarrassed. There are trillions of dollars help offshore waiting for the government to wise-up.

 

Keep in touch.

BRUARY 12th 2015

 

There is a lot of activity in the market. We don’t pretend to cover it all. There are sites-aplenty to do that. We comment from time to time on news or other commentary that makes us better investors

and traders.

 

  1. Months ago I commented on Apple (AAPL), right after their seven for one stock split.

I liked it then and commented that it was a $200 stock—even after the split. I reiterate my belief that the company is doing well. Today Carl Icahn, the famous or infamous investor commented on Apple and set a price target at $216. Now, while I agree with him, I acknowledge the details are a bit skimpy. When? Is the major question. I am good at the what, but lack in the when department. All in all, it’s a great company, making tons of money. This is a good one to watch. I’m not big on doing straight options, as many of my students are not that good at them. This is one reason I love covered calls so much. Anyway, I paper traded AAPL, and that option has doubled. Watch there post as we move along.

  1. I’ve been watching the DIA. This is a trust that trades as an ETF. The trust owns all of the Dow 30 stocks. Here is an assignment. Look at these charts of DIA. Note that it trades at 1/100th of the DJIA. If the Dow is 17,940, DIA will be at $179.40 give or take a few pennies. This stock’s options are in $1 and now even 50¢ increments. Look at the last month, even the last Six months. Do you see a rolling pattern? I like this and over the years I’ve made some good money. Calls on the upside, puts when it goes down. Right now I’m tempted to buy the February $178.50 put.
  2. Here’s on observation on trading this type of trade on the DIA. Based on the strike price you choose, for every 100 point move in the Dow, there is a 50¢ move in the option. It’s not perfect. For example, of you buy a call or put, near the money, say for $1.40, and the DJIA moves up or down 100 points, your option should be going for $1.90 or so. Paper-Trade this a see for yourself.
  3. There is quite a stir about Google raising money ($5,000,000.000) in a bond offering. They’re taxed too much to repatriate their billions of dollars. It’s cheaper for them to get money at less than 1% interest, than pay taxes. Our Government should be embarrassed. There are trillions of dollars help offshore waiting for the government to wise-up.

 

Keep in touch.

Stock MarketWade Cook