Friday, October 7, 2011

10/7 Covered Calls

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

All of the downtrending issues are moving up the past few days but have not yet set higher highs -- by exceeding the previous retracement high in the downtrend. That’s why I continue to code them as downtrending. A higher high would signal a move to neutral, and a subsequent higher low would trigger coding as an uptrend.

The one exception is NOV, which has exceeded the previous high, set Sept. 27.

I’ve closed my insurance puts on COG, CAR and TPX.

I’m carrying out-of-the-money insurance puts on CNX, CVI, HAL, KEG and MCO.

My remaining insurance puts are on stocks that are at or approaching the upper boundary of their downtrending price channels. Should that boundary be exceeded, then I would close the puts.

Covered Calls

sym phase trend adx   200/50 40/10

Other Base Positions

  • None.


  • 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 neither.
  • 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.


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.

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