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Other Added - Why Covered Call Traders Lose Money
Often shoe companies catch flak from consumer rights groups and human rights groups because they say that the shoe companies make all their products in foreign countries and use child labor or they do not pay enough living wage so the people in the area have to work countless hours just to make the shoes.This may be true for the overall shoe industry, but it is problematic from a public relations standpoint. Many times sports shoe companies pay tremendous dollars to athletes for sponsorships and if they are giving $175,000 or $150 million to a sports star and then only paying five dollars a day to have shoes made in China this can cause a serious issue because of the differences in wealth.Public relations for sports shoe companies must work very hard so they can sell their shoes at $100 plus per unit even though those shoes may have been made for only two dollars, but since much of the money is paid in endorsements and sponsorships this upsets so many people.Nevertheless, sports shoe companie
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which po
After working for months the idea of a family vacation can seem like the ideal reward. A week or two in a sunny climate in the middle of a cold and snowy winter is the icing on their yearly cake. Vacations are usually costly though and if your job is set a family budget, you’ll want to get the most out of each dollar you’ve allocated to the vacation fund.There are many important factors to consider if you’ve decided to set up a financial plan that includes money for vacations. It isn’t enough to just take a percentage of each paycheck and put it in a separate bank account that you’ll turn to at the end of the year. With the proper planning techniques in place when you set a family budget you’ll be able to execute a trip that will be unforgettable.One important consideration is timing. Most people want to venture out on a holiday at the same time each year. The travel industry refers to these times as peak periods and they generally fall in December, March and again during the summer months. The reaso
However, if you want to do better than the market, you better have a plan. Covered Calls is a way to do so.
Covered calls are the most conservative of all the various option strategies. It seems pretty simple but, many people have trouble making money with them. Most of their problems are one of four things: (1) failure to properly screen good CC candidates (2) failure to monitor and manage your positions once in them (3) not being in enough positions to be diverse and (4) not trading with enough money and thus commissions and taxes take most or all of your profits.
(1) Failure to properly screen positions
I use OptionsXpress and they are great, but at the time of this writing, their covered call screener is lacking. The best one I have found is at Option Monitor. It costs only $35 per month and can screen for about twenty different items. The very useful ones that I use that OptionsXpress do not have are percentage in or out of the money, market capitalization, and percentage above or below the 52wk high or low. Paying another service around $60 or more per month so they can use their "special screener" to show you pre-screened choices is a waste of your money.
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which pos
If you are in the sales profession and do sales yourself there is no doubt that you will do some of your business by telephone, it is inevitable. It is for this reason that salespeople should discuss teleselling and all the various aspects. We should be discussing the new telemarketing laws, which have changed the industry for ever and how your company no matter what size can benefit from incoming telemarketing. Selling on the telephone is much different, but it is also much more efficient especially when prospecting or cold calling.In my career we built our small company, which was quite successful regionally into a multi-state franchising company. Eventually, we were servicing 450 cities in 110 markets with franchises we had sold in 23 states in four countries. Each time we went into a new city with our brand name no one knew who we were and we had to develop clientele for our franchisees so they can become successful, needless to say it was not easy. As we entered new markets we went through the phon
Covered calls are the most conservative of all the various option strategies. It seems pretty simple but, many people have trouble making money with them. Most of their problems are one of four things: (1) failure to properly screen good CC candidates (2) failure to monitor and manage your positions once in them (3) not being in enough positions to be diverse and (4) not trading with enough money and thus commissions and taxes take most or all of your profits.
(1) Failure to properly screen positions
I use OptionsXpress and they are great, but at the time of this writing, their covered call screener is lacking. The best one I have found is at Option Monitor. It costs only $35 per month and can screen for about twenty different items. The very useful ones that I use that OptionsXpress do not have are percentage in or out of the money, market capitalization, and percentage above or below the 52wk high or low. Paying another service around $60 or more per month so they can use their "special screener" to show you pre-screened choices is a waste of your money.
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which po
Sitting through an interview for a job is stressful for just about anyone. It's understandable and pretty much expected. Now you have likely found quite a bit of information on the internet regarding your resume, but what about handling the job interview? Do you know how to keep yourself calm after you walk through the door? Being able to 'sell' yourself in a relaxed and professional manner manner during the interview will raise your chances of getting the job offer as you make a great first impression on the interviewer(s). Every interviewer realizes that the applicant will be a little nervous. But, if you can learn to relax and answer each question in the best manner you will have an edge on the other applicants.With the current state that the world's economy is in, you should definitely be prepared and do your research to give yourself the best chances. A professional looking resume is a terrific start, but that will only get you the interview. You still have to sit down with the possible employer and pr
(1) Failure to properly screen positions
I use OptionsXpress and they are great, but at the time of this writing, their covered call screener is lacking. The best one I have found is at Option Monitor. It costs only $35 per month and can screen for about twenty different items. The very useful ones that I use that OptionsXpress do not have are percentage in or out of the money, market capitalization, and percentage above or below the 52wk high or low. Paying another service around $60 or more per month so they can use their "special screener" to show you pre-screened choices is a waste of your money.
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which po
For one thing, business formulas and ratios tell you where you’ve been, where you are now, and where you are heading tomorrow and beyond. Wouldn’t you want to know that information as a prelude to getting a good night’s sleep?Secondly, business formulas give you a way to think about marketing. One horrible mistake made by the uninitiated forager in Internet marketing is not committing to forward planning, or to think of marketing as simply selling something. It would be easy to go to a product source like Surplus Warehouse, pick out a product or two and arrange to add a subject page, a link to your website, or buy banner advertising.Better you take some time to identify your target market and determine what that market wants to buy, not what you want to sell. Put on your buyer’s pants and shoes and walk around in them for awhile until you are clear what it is the buyer wants and what he will pay for it. You will be led into defining your specific market, maybe taking a survey via e-mail among your re
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which po
Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites are not doing the Industry any good. Typically they charge a fee for advertising per month or charge per sales for the lead, there must be 50 such sites. Only a few are able to generate significant leads, which you as a franchisor must pay heavily for. Each day our Franchise Company gets hit up by these online companies pitching their great lead generation sites, we cannot get them to stop calling us actually. They promise you leads that are qualified and generally none are of value, after all just because someone filling out a form says they have $500,000 to spend does not mean they do.At $15-40.00 per lead, you get people surfing around who hit maybe ten to twelve different franchises on these sites, generating for those companies about $400.00, yet the potential buyer has signed up for 10 different franchises. Then each franchisor sends mail out packages and pays for this lead about $10.00 - 15
Some CC writers just starting out (like myself) go to a site like coveredcalls.com and look at the highest yielding CC positions and go to town. This is an absolute recipe for disaster (I lost 40% in three days, luckily I was paper trading). Those stocks are WAY too volatile and are usually tiny medical related companies. A good CC trader should be very picky in which positions he is going to use.
(2) Management
I learned about CC's from a guy who was trading during the roaring bull market in 1999-2000 and got absolutely slammed when the market crashed. One of the fundamental things he did wrong was that he failed to set STOP orders for his positions and ended up loosing about 70-80% after he couldn't produce cash for margin calls. Determining your exit strategy is absolutely vital to any CC trader.
Another item that deals with management is rolling up, down, or out. Some CC traders look at just their account balance to see how they are doing.
If your stock has gone down but is still good fundamentally, is rolling down a good option? What if the option has lost all of its time value and rolling out right now can lock in your profit? The bottom line is that you can not just look at the current prices in your account and determine if you should do anything. You need a calculation tool to tell you when you should make management decisions. I have created and currently use an excel spreadsheet that I think is fantastic. It calculates multiple items such as
- Returns if flat and Returns if called out
- Current Return based on current prices of the stock and option
- Shows a roll-over option for rolling up or down
- Downside protection percentage
- Percentage ITM or percentage OTM
- When the stock is be
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