Herm,
In RE: to FLC
>First, do you employ charting reading skills? Your timing on this FLC
trade was very good.<
...Yes, without some basic charting /ta and fa skills this stock picking stuff would be very hard to do. ...As far as timing goes; ...I watch for double bottoms. I was fooled when it hit the second. Got in and out at 9- 8.5 ... ...The third or forth bottom was the last few days of the year. Figured that with year end tax selling that all who wanted to sell have already sold. Got in at 7 1/8, 7 3/8, 7 3/16, 7 9/16, 7 13/16, 7 15/16, 7 11/16, 8, 8 5/16 and last 2000 shares at 8 11/16 on Friday.
The whole oilpatch is a sector that I've been watching for the last year. Made some good $$ shorting it; However, until cold fusion is proven I tend to take the historical view of oil. It will come back; for too many reasons that I'll not go into at this time. ...While it is true that even a one-eyed blind dog could find a bone in the patch at this time, some stocks have more going for them than others. FLC May 12.5's have a nice premium. Flc was in the 30's a year ago, has good volume and liquidity, etc. ...in my mind little down side and a sure upside.
>Second, have you been CCing before? I like the way you used the time
value of the CCs and strike price to grab huge premies to do your
hard work of levering and protecting your downside as well as
generating a nice upside profit potential. Very astute strategy!<
Yes, CCing can be a very powerful tool if one understands the compounding effect of selective leverage. Buy the shares, ...sell the calls, ...buy the shares, ...sell the calls etc. ...watch your downside, ...get the most for your upside. ...A very powerful tool.
I really hope I don't get called out. I really hope this stock stays in this trading range. ...I'd like to buy back all the calls 90 days down the road. ...I'm at 70% margin at this time; both for downside protection and upside max return if stock should start to run.
Will continue strategy of buy and sell calls until stock hits 9.5. At that point I'll have to re-look at risk / reward . Everything changes, ...nothing stays the same.
Bottom line _____ Right stock, right time value, right fa, right strike, right premies. ..."In the land of the blind the one-eyed man is king"
Hope this helps to answer your questions.
Good thread Herm, ...Thanks, luck to you, ..//Robert |
