DallasAggie2012 said:

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Thanks again for all the info OldArmy! It definitely helps seeing these charts to reinforce patterns and keys to look for when looking into various companies.

I have a little more generic question as I get going on trading options now that I have a base understanding of the actual options and their functions.

How do you find the companies or underlying's that you are trading? I know some come from interest in certain sectors, but I can get overwhelmed sometimes by the number of underlying's out there and how to whittle that down into a more reasonable watch list. I was wondering if you are normally filtering down to a smaller group of companies to look further into based on a couple different key metrics, such as implied volatility, volume, bid/ask spread, etc?

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oldarmy1 said:

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Real time entry post. CHK January 20 $9 strikes at $0.13

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Ragoo said:

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my BIL works for a large bank and we were discussing his role there. He basically manages a "fund" for them that seeks large cap, low volatility, high dividend, low P/E domestic and international companies. They then run their price projection models and sell covered calls into those targets.

I thought it was pretty neat since olarmy is doing very similar. Obviously he is being more risky in the trades since he isn't using the "stalwart" criteria like my BIL.

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jh0400 said:

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Ragoo said:

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my BIL works for a large bank and we were discussing his role there. He basically manages a "fund" for them that seeks large cap, low volatility, high dividend, low P/E domestic and international companies. They then run their price projection models and sell covered calls into those targets.

I thought it was pretty neat since olarmy is doing very similar. Obviously he is being more risky in the trades since he isn't using the "stalwart" criteria like my BIL.

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BuyWrite funds are an interesting concept from a risk/return perspective.

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bmks270 said:

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jh0400 said:

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Ragoo said:

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my BIL works for a large bank and we were discussing his role there. He basically manages a "fund" for them that seeks large cap, low volatility, high dividend, low P/E domestic and international companies. They then run their price projection models and sell covered calls into those targets.

I thought it was pretty neat since olarmy is doing very similar. Obviously he is being more risky in the trades since he isn't using the "stalwart" criteria like my BIL.

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BuyWrite funds are an interesting concept from a risk/return perspective.

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Some interesting research out there about this strategy.

CBOE has an index that is lower volatility than S&P with about equal performance. Other studies show buy-writing under performing.

My own study of options has lead me to short put/covered call strategies. I'm still learning but I have the most success with conservative options strategies. I think you have to be flexible with your entries and have to account for Implied Volatility.

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BT1395 said:

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oldarmy1 said:

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Real time entry post. CHK January 20 $9 strikes at $0.13

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I need some help understanding this one. I'm an absolute novice at TA, but this looks like it's bordering on overbought territory. What am I missing here that would help get these call options up in value?

(I understand that we're talking about a whopping $13 per contract, but still...trying to learn from the Master!)

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Gator2_01 said:

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BT1395 said:

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oldarmy1 said:

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Real time entry post. CHK January 20 $9 strikes at $0.13

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I need some help understanding this one. I'm an absolute novice at TA, but this looks like it's bordering on overbought territory. What am I missing here that would help get these call options up in value?

(I understand that we're talking about a whopping $13 per contract, but still...trying to learn from the Master!)

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Stocks in an uptrend stay in overbought territory for the entire uptrend. If you're looking for a breakout and strong move up you better believe you are buying an overbought stock. Then you're hoping it stays overbought for a number of months.

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Aggiesincebirth said:

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OldArmy, can you give me your thoughts on PSX? I've been following it for years and it's been good to me. Seems to follow Crude pretty closely although it's what I would call a fully integrated downstream play. I'm not sure how to value it and it isn't a risky play but is very streaky and I call a for a breakout at around high 79s to mid 80 and again around 85. The company has had a rough year comparatively year over year. Do you think too out is at 89-90 or does it have room to run?

Also interested in FNBC. Got in at 8.82 went up to 9.90 and I put a stop limit in on pre market before the FED announced and it has crashed and burned since. Is there a good entry level for this stock? Never do this but I took advice from a friend without researching it and was riding "high" for a couple days but didn't want to lose my shirt so I put that stop in. He bought in at 6 and never exited thinking it was a take over target.

Sorry for the length but really enjoy your analysis as well as others on here. Most valuable thread on texags.

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bmks270 said:

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I can now say I have applied what I have learned in this thread with some positive outcomes. It seems after following this thread long enough some things just stuck and is beginning to emerge in my trading decisions. The most significant concept I have gotten from this thread is the significance of volume. Thanks to all who contribute.

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tx-ags14 said:

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Electors place their votes Monday.

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