logo.png (1720 bytes)    INVESTEK

News, Education and Utilities for Investors, Published weekly

heading.png (92086 bytes)

Home Events Archive Contact About Us Comments
 

 

 

Monday, October 19, 2020

   So now we have the spreadsheet. Let us populate it with the prospective stocks, look up the price, top of the Bollinger Band, "high for yr", and "low for yr" for each from finance.yahoo.com.

   If the price is higher than the "higher limit", we can sell puts. Look at the option charts, select a strike price close to the "higher stop", insert the "option premium", and see if the "yearly profit %" is adequate. If so, sell the puts.

   If the price is lower than the highest limit, we can sell calls. Look at the option charts, select a strike price close to the "sell call" price insert the "option premium", and see if the "yearly profit %" is adequate. If so, sell the calls.

   At least once a day, revise the price, "higher limit", and "strike price". The "*" column will show if the limit has been crossed and you should buy back the option. Next week I will show how to automate these numbers.

   If all goes well, you should profit about 20% per month. If the bottom drops out, let's hope you are watching every day and get out.

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.

   Please consider a donation to help us continue this site.