Hello Joe, happy to join here...
I am interested in learning the raw concept of profiting from CC. I checked your trades in-depth and noticed your preference for ex high-flyers. Could you share with us what is your reasoning for chosing specific stocks? Is it an attempt to curtail downside risk?
It also appears most of the stocks -even if beaten down- do have the wind behind their back either because of good fundamentals or market projections. Take YGE on photovoltaics. It seems your experience does favor being called away since odds are some of these stocks would improve as we move forward.
Should this be our frame of mind when focusing on CC?
Finally, could you narrow down whether it is better to play ITM or ATM options in regards risk/reward? Who wants 11% in a month playing ATMs if the paper can crater? Are you also taking into account the general state of the market? Take todays market... it appears we are at risk for a larger downshift within a month or two. I like what you are doing but I am also afraid these are times when 30 days can mean simply day and night.
Finally, I have noticed a few of your plays were slightly OTM letting you speculate with a minor percentage of stock appreciation. But then, like on YGE the stock has now fallen $1 behind your entry point. So, in general, is it safer to just go with ITM options and have a greater chance of being called away? Case in point. Today's YGE play
in @ 18.39
March 17.50 calls @ 2.25
Called at 17.50 (18.39 - 17.50= .89)
2.25 - .89 = 1.36 / 18.39 = %7.40 minus commissions.
Your feedback/input is greatly appreciated.
