27 Comments

Pfizer will be seeing a flood of lawsuits now. Probably a good time to short it.

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Why will Pfizer be sued?

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Because its been revealed that Pfizer knew their vax was adulterated with non disclosed SV40 promoter sequence in the COVID vaccines, without any disclosure. Multiple nations now looking at this. FL will probably be the first state in the U.S. to sue Pfizer. That and many other issues.

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The mRNA vaccines were never safe or effective. That's why both Moderna and PFE have sunk like a rock, even though they were heavily subsidized by federal governments.

https://www.cnbc.com/2023/11/02/moderna-mrna-q3-earnings-report-2023.html

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We just got our flu, Pfizer covid and RSV shots. They're working for us as vaccines have worked for us since we were born. It is important to get each shot a couple of weeks before or after the others. Our physician and research shows that you shouldn't get any two or three all on the same day. Be well.

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This week, I lost big with ON Semiconductor. I had 3 cash secured Nov 3rd PUTs sold at $86/share.

Just got called with market price at $66.

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What is your net % gain YTD ?

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I think October cycle puts should workout fine...although you might see its all in red now... 2 weeks+ to expiry, a market bounce will just put them back to the right spot...

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How can I see the Covered Call Trades you make at the same time you make them? Thx.

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I try to post trades in the comments section soon after I do them. But when I'm doing a lot of trades as I did today, I may post them a day or so later. I'm not a pro nor a financial advisor so my posts are meant to be educational, not advice.

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I find I make more money selling CSP's, than I do with covered calls.

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Aloha Donald,

Well, it helps but what I am interested in is a timely note as to which trade (covered call, or put strategy) you are considering, and how and why---which you answer once he process has been sorted out(if I understand correctly), So it is a lot more motivating for me, to be a partner although not as knowledgeable and practiced for sure), and as you put the pieces together , I could follow along learning from that and access the relevant links also---timely. And, if I agree, I could consider putting on a trade also. But finding all this out some time after the fact is not as appealing.

Best Regards,

George

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I am a rank newbie, whohs been trying to learn. I do not have much capital, so covered calls are I hope for a later and weather time. I know how to put on bull Puts and bear calls, and iron condors.

I read faithfully your mails, but do not understand why you are telling us about trades you put on a month or more back?

Regards,

George

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George, My blog is written for newbies and experienced options traders who want to learn how to trade cash secured puts and covered calls.

I discuss my trades as I do them and update my reports on my current portfolios until the options expire.

Along the way, I discuss how I pick stocks and decide how I pick the covered calls and puts that I trade and how the trades work out.

I'm hoping this gives readers some new ideas about stock picking and options trading as well as trading for dividends and options premiums income.

With each post, I offer links to previous posts so readers can get a feel about how the markets and options trades work and how I'm doing.

I hope this answers your question.

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Donald'

I have been selling CC's for years,

on certain stocks , exp never beyond 30 days, and the biggest lost i

had was at the beginning : 17%.

I have learned much since then ,

Dont you use contingency orders ?

Hell, i remember when the market was more volatile

on my most risky positions i had 3 levels of contingency orders GTC,

that way i could go to work, and sleep without stressing about how much

i could win / loose , i knew in advance.

Other positions i have been rolling Options for over 2 years without a break....

I fix myself a minimum 0.79% gain / 14 day target.

Also you will find that at certain times , the use of other Option strategies

along side CC's and CSP's will prove useful to profit from your position.

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Rob K, I'm a keep it simple kind of trader. So I don't use contingency orders, and I seldom do vertical spreads, ITM covered calls or LEAPs trades.

I'm glad your trades are working. It would be great if you posted some of your trades so we could learn more from you.

Thanks for commenting.

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Why didn’t you roll the csp options before assignment?

Thanks for your insight!

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Hi Marie,

I sell puts on stocks that I want to own. When the stocks and ETFs are about to be assigned, I can buy the puts back and move on or take assignment and sell covered calls on them.

A week or so ago, I bought the IWM puts back at a small loss. That was a good trade because IWM is lower now.

Last week, I took assignments because the markets and stocks looked like they were a bit over sold and ready to bounce.

Instead of taking losses and moving on, I'm taking the equities and selling calls on them for pretty good premiums while I wait for them to rally, if they do.

Sometimes it takes months to get the stocks net debits months back to where I'm willing to sell them for small losses or I can take profits on them.

I can do this because overall these are small losses for me and I can afford to wait and speculate.

For people who are fully invested and are trading only a few options at a time, it might be better to buy the options back before they expire. But to do this, you have to wait until the last day or two before the options expire, because they usually are very over priced until the option expiration day.

Then, the goal is to pay as small a time premium as possible.

If the strike is $50 and the stock is $50.20, you want to buy the puts or calls option back for $0.21 to $0.25, but sometimes you may have to take a $0.30 or $0.40 per share loss because of the price action, volume of trading and the open interest.

Every situation is different, and every trader has to do what works best for her.

So I'm doing my thing, but it isn't what everyone should do.

Thanks for the question.

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It would be great if you could forward me a copy of the spreadsheets. Victor

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I love your analysis on these trades. I bought LNC 23 and change and been CC 30's. A lot of volatility with rich premiums !

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That would be great if you could email them to me

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BTW is the excel file or spreadsheet you are using is that what you created or is it a service available to the public?

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I created the spreadsheets. I can email them to you. I don't think there are viruses on my Mac, but you never know and I can't guarantee.

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Excellent article Don. Thank you, Victor

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Thanks Donald. Appreciate your honesty when a trade doesn’t always go the way we think it should. I am finding out that more is learned on those that go south! A lot more thinking and effort in these situations! I am going to watch PAYC and may even trade it now! It is definitely a challenging market! As you mention diversification is extremely important.

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