11/3 Covered Calls

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

Covered Calls

sym	phase	trend	adx		200/50	40/10
BIDU
DFS
EWZ
FCX
GMCR
HAL
LVS
NLY
RIMM
SLV
XLF
XOP

Technical:

BIDU is trading within an uptrending channel that began Sept. 30.

DFS has been tracing a large symmetrical triangle -- a continuation pattern -- since its high on July 7.

EWZ is trading within an uptrending channel that began Oct. 4.

FCX is trading within an uptrending channel that began Oct. 4.

GMCR is trading within a downtrend channel that began Sept. 20.

HAL is trading within an uptrending channel that began Oct. 4.

LVS is trading above a sideways trend that began in late March, and also within an uptrending channel that began Oct. 4.

NLY has dropped below the floor of an uptrend channel that began Oct. 4.

RIMM is trading below a sideways trend that began Oct. 6.

SLV is trading within a rising channel that began Sept. 26.

XLF is trading below an uptrend that began Oct. 4.

XOP is trading below an uptrend that began Oct. 4.

Both XLF and XOP are again trending upward at the same angle as the uptrending channel, although below it. With XLF, I see a clear justification for widening the channel -- the correction of Oct. 13 was a shallow one-day dip. But XOP in that period showed a marked sideways correction lasting a week, which should count as the correction move that locks down the channel. Since we’re dealing with broad market movements, II shall apply my XLF analysis to XOP, and widen the channel in both cases to encompass the below-channel rise of the past three days. So in both cases, the analysis reads "trading within an rising channel".

An interesting charting problem, that.

Positions:

sym	entry	strike	premium
BIDU	144.16	145	6.05
DFS	23.60	21	2.92
EWZ	59.34	55	5.20
FCX	43.08	32	11.20
GMCR	111.77	x
HAL	38.79	29	9.78
LVS	48.87	50	0.69
NLY	17.96	16	0.52
RIMM	23.33	21	2.96
SLV	30.76	28	2.96
XLF	13.14	12	1.33
XOP	53.22	48	6.35

Note: “x” in the strike column means no call has been sold against the shares.

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.