Herm, thanks for response. I'm still reading through first few hundred posts and like what I see.
I have a different opinion about TJX. All points your had made are valid, but TJX broke out of 5-6 weeks base and made a new high. They have 2:1 split coming, retailing group is strong, people spending more, etc.
Chart of TJX iqc.com
RSI = 52, which is OK, momentum is positive, stochastics are on overbought side. Stochastics could stay overbought for a long time same as RSI. Bad sign is when they start to trend down. From Big charts you can see that MACD turned positive also.
2 insiders sold 281K shares in last 6 month, but almost any company had insider sells reported. About possible news coming: Retail sales report, etc are out every month.
Disclaimer: I do not own any share of TJX. I planned to use your ROST study as blueprint for CC paper trading. TJX and ROST a competitors and have a quite similar fundamentals.
I have another few questions:
1. How far in time is reasonable to sell calls? 1-2 month out?
2. Do you sell calls at the money and 1 strake higher, or 2-3 strikes
higher?
3. Do you see a difference in CC for $10, $20-30, $40-50, etc stocks?
4. Is it make sense to stay away in CC from highly liquid and moving
stocks such as Dell, INTC , etc?
5. Do you use same method for selling naked puts, if you want to buy
a stock?
Thank you,
Slava Chechik |
