SMART Trading Strategies

Tag: covered calls

  • Paper Trading – Dec 2021

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    First posted on 2 Dec, updated as and when new trades are executed. Positions Closed PRFT Date: 1 DecOptions: BTC 17 Dec 145 CallPrice Entered: 4.6Price Exited: 0.92 Comment Option hit the 20% mark and was closed using a limit order. AMD, CROX, ENPH, INMD, PRFT Date: 2 Dec Too many positions to list down…

  • How to determine if your stock is underperforming the S&P500

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    Using stockcharts.com Using Python code

  • Paper Trading – Nov 2021

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    First posted on 2 Nov, updated as and when new trades are executed. Positions Entered Covered Calls BLDR Stock: BTODate Entered: 9 NovPrice: 67.68 Options: STO 17 Dec 70 CallDate Entered: 9 NovDays to Expiry: 38Price: 2.3ROO: 2.3 / 67.68 = 3.4%Return on Upside: 2.32 / 67.68 = 3.4% Pros Stock passed the IBD screen…

  • How to work with financial timeseries in Python

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    How to download stock and option prices from Yahoo Finance How to export data to separate Excel sheets How to read from Excel files How to export data to separate CSV files How to read tables from HTML pages How to plot single series stock charts (line graphs, bar charts, candlestick charts) using the cufflinks…

  • Covered Call Writing (Notes Part 3)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 9 –…

  • Paper Trading – Oct 2021

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    Lately I’m paper trading two strategies – covered call selling and the wheel strategy. This is not the best time to try the two strategies as I have not completed the book on covered calls yet. In addition, this is earnings season and a lot of stocks are too near to expiry (less than 30…

  • Covered Call Writing (Notes Part 2)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 5: Portfolio…

  • The Wheel Strategy for Options

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    The wheel strategy = Sell Cash Covered Puts + Sell Covered Calls when assigned the stock Here’s a video discussing the wheel strategy: Rules: Only sell cash covered puts on stocks that you want to own Sell 30 to 40 days to expiry Sell options with delta = 0.3 Lessons: If you have 50% unrealized…

  • Covered Call Writing (Notes Part 1)

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    Here are some notes I took from the book “Complete Encyclopedia for Covered Call Writing” by Alan Ellman. I’m already familiar with how options work, so these notes only cover the new concepts I learned. I strongly recommend that you buy the book (it’s a good book) for more details and information. Chapter 2 Covered…