| trend | adx | psar | pps | macd | macd trend | sto | sto trend | |
|---|---|---|---|---|---|---|---|---|
| AOD $9.24 | ||||||||
| BBY $44.74 | ||||||||
| JNK $39.71 | ||||||||
| MCO $28.81 | ||||||||
| NLY $17.25 | ||||||||
| PALM $5.32 |
If it stays below $29, I keep the stock and the premium on the covered call. If it moves to $29 or above, I must sell the stock for $29, but I get to keep the premium. With only a 19¢ margin, it's a nail-biter.
I note that both the macd and the stochastic have begun to strengthen, although the psar and pps remain bearish.
My May bull call spread on BBY pulled back a bit today as the stock went ex-dividend. That means people buying the stock from today onward don't get paid the next dividend, and the stock price adjusts to reflect that fact.
The dividend is 14¢, and today's opening was 31¢ below yesterday's close. So about half the decline is dividend.
As an options holder, of course, I don't get the dividend. So on my books, the whole 31¢ loss is a loss. With expiration more than a month away, I'm not worried about recovering that money. But anyone holdings options closer to expiration is wise to be aware of ex-div dates.
Financial consultant Leslie Masonson describes a strategy for actively trading exchange-traded funds.
PALM has drawn back a bit after a huge four-day rise resulting from buyout talk. Yesterday's volume was about six times what PALM typically sees. I'm not surprised to see a drop-off in interest after such a (I loathe this word!) surge.
Abbreviations:
psar - Parabolic Stop and Reverse
adx - Average Directional Index
pps - Person's Proprietary Signal
ma20 - 20-day moving average
macd - Moving Average Convergence-Divergence
mfi - Money Flow Index
sto - Fast Stochastic
About the glance: The colors indicate the state of each signal.
- trend: Determined by the 5-day moving average, green for up, red for down, yellow for sideways
- adx: orange for above 30-up, blue for 20-down, purple for in the middle. Red is most prone to whipsaws
- psar, pps, macd: green for bull mode, red for bear
- sto: green for overbought, red for oversold, yellow for the neutral zone.
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