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Monday, November 16, 2020

    While we're waiting for a vaccine, India reports that, after treating all health workers, hydroxychloroquine is also 90% effective in prevention and treatment.

   Again, because of the negative real interest rates and bloated debt this year, our momentum process overlies value investing. This week, I list the steps of our process to make slow but low risk profits. We will explain each step later.

Look for candidates
    news
    stories
    scan cnbc.com - use buffett method for value stocks
some net profit
pe <= 50    (maybe reduce more later)
price < 500 (maybe reduce more later)
200 day moving average up over 3 weeks
price > upper bollinger band
    (preferably just breaking through)

sell put at spreadsheet indicated price
    next third week closing date
    must indicate profit > 20%/yr

check daily or twice daily
close if option cost <= 10% of option premium
if price < put strike price
    if 200 mov avg down, short stock
    if 200 mov avg up, wait
        if price way below strike price
            sell call at strike price if profit > 20%/yr
if having shorted stock
    if price up to put, buy back short
if having sold call
    price > call, buy stock
    if having bought stock
        sell call at strike price and exp date if profit > 20%/yr
       
Barrett Leibe

See our List of Worthy Stocks to own. How do we Find stocks to buy? How do we decide When to buy and sell? How do we  Buy and sell?
Try our free IBCLOG A program to quickly and easily log onto you Interactive Brokers account. Try our free Barrons2txt program to put selected articles on your telephone in text format.

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