Comments on: "California Overnight Dividends" http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html Frustrated or intrigued by email teasers from investment newsletters and advisers? We solve them and track their performance here ... so stick around, participate and subscribe (it's free)! Sat, 21 Nov 2009 05:52:09 -0600 http://wordpress.org/?v=2.8.4 hourly 1 By: farley 5 http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html/comment-page-1#comment-6937 farley 5 Sat, 06 Dec 2008 19:38:07 +0000 http://www.stockgumshoe.com/2007/09/10/california-overnight-dividends/#comment-6937 Please be careful with CLR. They are selling at 16.7X next year's earnings. their rig count has been reduced from 35 to 17. Our recession will last at least until next fall with the world coming back in two years. Cap Ex has also been reduced from $883 MM to $609 MM. Their whole budget depends on $60 oil. I show a print yesterday at $40.81. Will OPEC cut production so Oil prices can go back up? Perhaps someday but not for quite some time. Finally, the chart for CLR is dreadful with no support until $9.00. Perhaps your put idea will pay off the best. Please be careful with CLR. They are selling at 16.7X next year’s earnings. their rig count has been reduced from 35 to 17. Our recession will last at least until next fall with the world coming back in two years. Cap Ex has also been reduced from $883 MM to $609 MM. Their whole budget depends on $60 oil. I show a print yesterday at $40.81. Will OPEC cut production so Oil prices can go back up? Perhaps someday but not for quite some time. Finally, the chart for CLR is dreadful with no support until $9.00. Perhaps your put idea will pay off the best.

]]> By: BillJ http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html/comment-page-1#comment-6935 BillJ Sat, 06 Dec 2008 19:08:34 +0000 http://www.stockgumshoe.com/2007/09/10/california-overnight-dividends/#comment-6935 I have had excellent service from optionsXpress. ThinkOrSwim has a fantastic new application that is free to download. In a down market I sell puts to buy the stock and then write a covered call when the stock is put to me. The ideal for me is for both the put and call to be exercised to increase profit. That very seldom happens thus the returns are small. It does hurt when the stock shoots up and I only get a 10% profit. In an up market, I buy the stock and then write a covered call. This method of trading only takes about an hour per week – good when working full time. optionsXpress has a "Screener" routine I use to select covered calls for a good monthly return. I avoid ALL medical/banks/construction stocks. Mostly energy and shipping. I know shipping is being hurt by the banks right now, but they still pay good dividends. For the Screener, I set the following parameters: STOCK Last Price from 5 to 15 (cheep stocks to buy) Avg Volume from 250K (can't trade if no one buys) P/E from 0 to 20 (This limits the scan) OPTION Last Price from 0.50 to 4.50 Volume greater than zero Open Interest greater than 100 CRITERIA Return from 5% to 39% This will often return around 300 options and I can select the one I like. For example, just now CLR (oil stock at $13.54) with a P/E of 6.57 and a net income of $381 million has an otm put of $2.60 and an otm call of $2.30. If you really, really like the company and think the price will stay above $12.50, this is a good return for either a put or covered call. If you think the stock price might drop below $12.50 - look somewhere else. I have had excellent service from optionsXpress. ThinkOrSwim has a fantastic new application that is free to download. In a down market I sell puts to buy the stock and then write a covered call when the stock is put to me. The ideal for me is for both the put and call to be exercised to increase profit. That very seldom happens thus the returns are small. It does hurt when the stock shoots up and I only get a 10% profit. In an up market, I buy the stock and then write a covered call. This method of trading only takes about an hour per week – good when working full time.

optionsXpress has a “Screener” routine I use to select covered calls for a good monthly return. I avoid ALL medical/banks/construction stocks. Mostly energy and shipping. I know shipping is being hurt by the banks right now, but they still pay good dividends.

For the Screener, I set the following parameters:
STOCK
Last Price from 5 to 15 (cheep stocks to buy)
Avg Volume from 250K (can’t trade if no one buys)
P/E from 0 to 20 (This limits the scan)
OPTION
Last Price from 0.50 to 4.50
Volume greater than zero
Open Interest greater than 100
CRITERIA
Return from 5% to 39%

This will often return around 300 options and I can select the one I like. For example, just now CLR (oil stock at $13.54) with a P/E of 6.57 and a net income of $381 million has an otm put of $2.60 and an otm call of $2.30. If you really, really like the company and think the price will stay above $12.50, this is a good return for either a put or covered call. If you think the stock price might drop below $12.50 – look somewhere else.

]]> By: avery http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html/comment-page-1#comment-5026 avery Thu, 04 Sep 2008 21:42:14 +0000 http://www.stockgumshoe.com/2007/09/10/california-overnight-dividends/#comment-5026 can u email ajefferson582@aol.com me any suggestions on a way to learn options trading without paying an arm n a leg? been trading online stocks only but trying to move into more lucrative position thanks can u email ajefferson582@aol.com me any suggestions on a way to learn options trading without paying an arm n a leg?
been trading online stocks only but trying to move into more lucrative position

thanks

]]> By: Fabien Hug http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html/comment-page-1#comment-4604 Fabien Hug Thu, 14 Aug 2008 03:11:48 +0000 http://www.stockgumshoe.com/2007/09/10/california-overnight-dividends/#comment-4604 Like ordinary income, unless you keep your option position opened for more than one year; then capital gain. Like ordinary income, unless you keep your option position opened for more than one year; then capital gain.

]]> By: BoycottKentucky http://www.stockgumshoe.com/2007/09/california-overnight-dividend.html/comment-page-1#comment-957 BoycottKentucky Mon, 21 Jan 2008 05:41:05 +0000 http://www.stockgumshoe.com/2007/09/10/california-overnight-dividends/#comment-957 The one thing not mentioned in this discussion: how are the proceeds treated tax-wise? The one thing not mentioned in this discussion: how are the proceeds treated tax-wise?

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