Reminder: Online Meeting 5-12; Brief Status Update

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Online Meeting Saturday, 5/12, 11 a.m.

Here is the dial-in and webinar info:

https://global.gotomeeting.com/join/753850757

You can also dial in using your phone:  United States: +1 (267) 507-0007

Access Code: 753-850-757

First GoToMeeting? Let's do a quick system check: https://link.gotomeeting.com/system-check

Attendance is limited to the first 25 callers.  I'm not increasing the number of seats unless the poll here  indicates more than 25 are going to attend, as it costs me money with Citrix.

Here's what I'm covering unless I hear from you:

1) Introduction
2) Quick overview on what is a Cash Secured Put (for beginners!)
3) Quick overview on what is a Covered Call (for beginners!)
4) How to calculate Return on Option (ROO) and Annualized Return on Option (AROO)
5) Basic sequence in rotating through Cash Secured Puts / Covered Calls
6) Stock Selection for CSP/CC strategy <===== most important!
7) Don't Ignore Option Delta and Why
8) How to Determine the "Correct" Duration to Expiration and Strike Price to Sell the CSP.
9) Position Size -- How Not to Explode Your Account
10) Executing the Trade
11) Buying the CSP back -- or Not
12) Being Assigned Isn't So Bad
13) Selling the Covered Call -- Back to Duration to Expiration and Strike Price Selection
14) Buying the CC back -- or Not
15) Goodbye CC!
16) Rinse, Repeat
17) Repairing a Position where the Stock that has Dropped In Price
19) Just Cut Your Losses -- or Not
20) What is *REALLY* possible in terms of Annual Return for THE PORTFOLIO?
21) Open Discussion

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CSPs I'm Watching for 5/7 Sell

First, Acronyms:

OE:  Options Expiration.  The day the option expires.  Days to OE is the date of expiration minus today's date.
ROO:  Return on Option.  The amount obtained by dividing the premium by the cost of the position.  For a cash secured put, this is (Premium Received / (Strike Price * 100 - Premium Received) )
AROO:  Annualized Return on Option.  Take the ROO * 365 days/year divided by days to OE.
IVR:  Implied Volatility Rank.  A number from 0 to 100 that shows the percentile that the stock is moving over the past 21 days relative to the last 250 (or so) trading days.  Higher IVR means more collected premium, lower means less.

Things I'm watching for today:

CLR 180615P60:  I'm looking to collect at least $106 in premium, even if I buy the position back at for $0.05.  Hence my entry limit is $115, the ROO is 1.95%, the AROO is 18.29%, and the Probability of Success is 71.7%.  The only bad thing is that IVR is 15.  ER is 8/1/18 and support/resistance are quite favorable, with a large secondary support level at $60.89.

CLR 180622P60: meets the same criteria as above.  Looking to collect $125.06 premium with 46 days to OE, including a buyback at 0.05.  ROO is 2.30% and AROO is 18.26%.  Prob is 70.14%.

WLL 180622P40:  same premium target with same 46 days to OE.  3.49% ROO, 27.72% AROO, but only IVR =2.  Put is below strong support levels of 43.12 and 41.57.  ER is 7/30/18.

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Holdings

Here's what is in my basket right now:

 My ROKU position is beating the heck out of me, but I keep selling calls against it so will keep on doing what I'm doing.  Everything else is moving like clockwork.  Here are the good/bad/ugly equity curves through 5/6/2018 for all option and stock transactions since 12/1/2017:

Option transactions (net $3,224):

and stock transactions (net $1,694)

 There is no 20d simple moving average (SMA) line with the stock equity curve because I have not had 20 transactions for the underlying (only recorded when a stock is put or called).

If you recall, this is being done on an account size that is now $82,427.

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As with all my ramblings, you are responsible for your own investment decisions and I am not.  Please do your own diligence, and please take ownership for your actions.

I look forward to your participation this Saturday.

Regards,

pgd

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