10/17 Covered Calls

This daily posting tracks my covered call plays for October and other base positions.

GMCR sees a large decline on analyst news.

Covered Calls

sym	phase	trend	adx		200/50	40/10
BIDU
CAR
CNX
COG
CVI
GMCR
HAL
JNJ
KEG
MCO
NOV
SPRD
TKR
TPX

BIDU is trading between the Fibonacci 78.6% and 61.8% retracement levels of the decline from Sept. 20 to Sept. 30.

CAR has paused at the Fibonacci 78.6% retracement of the decline from Sept. 16 to Oct. 4.

CNX is stalled at the Fibonacci 61.8% level as it retraces the declines from Aug. 31 to Sept. 6.

COG is trading at the mid-range of a sidewinder channel that began Aug. 9.

CVI is approaching the ceiling of a sidewinder channel that began Aug. 1 and has bounced off of the 20-day high.

GMCR broken below a sidewinder channel that began Aug. 3 and also below its 20-day low into bear phase. The sharp decline followed negative remarks from hedge-fund manager David Einhorn.

HAL has stalled at the Fibonacci 23.6% level as it retraces the decline from July 25 to Oct. 4.

JNJ is trading near the ceiling of a gently declining downtrend channel that began Aug. 31.

KEG has stalled at a Fibonacci 23.6% retracement of the decline from Aug. 1 to Oct. 4.

MCO continues to climb near the floor of an uptrend channel that began Aug. 23.

NOV has stalled between the Fibonacci 50% and 38.2% retracements of the decline from July 26 to Oct. 4.

SPRD is trading in the upper half of an uptrend channel that began July 29.

TKR has bounced of the ceiling of a sidewinder channel that began Aug. 9.

TPX is nearing the ceiling of a sidewinder channel that began Aug. 19.

Other Base Positions

• None.

Key

• phase: 20-day price channel phase, with green for bull trend, red for bear trend and yellow for neutral trend.
• trend: Price direction, green for higher highs and higher lows, red for lower highs and lower lows, yellow for sideways, and grey for neutral or ambiguous.
• adx: Average directional index location, indicating the strength, or the temperature, of the trend. Orange for 40 or greater, aqua (light blue) for 25 and up but below 40, magenta (light purple) for 20 and up but below 25, and brown for anything below 20. (Mnemonic: Orange for the overhead sun, blue for the surrounding sky, magenta for sunset on the horizon and brown for the earth.)
• 200/50: The moving average cross, green for the 50-day ma above the 200, red for below and yellow for closely aligned.
• 40/10: The moving average cross, green for the 10-day ma above the 40, red for below and yellow for closely aligned.

About my trading methods

Read a detailed explanation of my analysis method, including trading rules. These don't, at present, discuss my covered call strategy, which is under revision.

Disclaimer

Tim Bovee, Private Trader tracks the analysis and trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment.

No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

The trader’s greatest sin is inaction. Sleeper, awake! Seize the Nietzchean moment. Roll out of bed and trade.