Wednesday, January 31, 2018

CPT Newsletter - January 2018




Welcome to my CPT Newsletter - January 2018

Hi Everyone! Welcome to my new monthly CPT Newsletter on Covered Calls and Cash Secured Puts. In this Newsletter I will share with you my experiences, trades and other good stuff that should 'Up Your Game!' writing covered calls and selling cash secured puts. Heck, if anything the EXCLUSIVE video content I will be doing for newsletter subscribers alone will keep you interested… now, I will release those videos but not until the following month … hey, it's a perk of membership to this FREE Newsletter  :)  I hope you enjoy it and SHARE the newsletter so others can benefit as well … because at the end of the day it's about being SUCCESSFUL so we can feel good about our self and MAKE IF FLOW LIKE WATER! Good Luck and as always, Best in Trading!


LINKS TIP for this newsletter …

Ok, I'm NOT a webpage guru so you have to work with me … Here's what happens if you just 'click on a link' … you're taken to that website (ie, Youtube) and you'll have to click the 'BACK' button to get back … frustrating … how about this … HOVER over the link and RIGHT CLICK … open new Tab or Window … then THIS window stays open as well as the new link opens  :)

Are you all caught up on the recent videos?
Look, I get it … some of my video's rehash common Covered Call and Cash Secured Put topics you may already feel you master … but my weekly video's are generally short and you know I always give you something extra … whether it be a story or a CCW/CSP tip … check it out … I've done 2 this past week … are you caught up?


Want MORE CPT?
I've just released my CPT Blog for which I will be doing updates on trades and giving you my take on different stocks and what I see … get it, 'showing you the world thru my eyes' … it's my main lead in for my videos … anyway, if your interested check it out … I love sharing my ideas and thoughts on the markets!


January's 'Tips and Tricks' video
How I use Support/ Resistance Lines to 'cherry pick' those CCW and CSP PROFITS!
Click to watch the Exclusive Newsletter members video below

Here's another RED HOTT, Covered Call / Cash Secured Put "Tip and Trick of the Month!"
With the stock market rallying to all time highs (seemingly everyday), many of the stocks we own and write covered calls on are moving past our strike prices. Typically this means our shares will be taken away but probably the biggest fear or disappointment is that we're losing all that UPside. What seemed like a good trade THEN is NOW feeling like we're left holding the bag as the stock goes higher and higher … trust me, I know the feeling but in these cases we need to consider two things and I hope you learn something:
  1. What goes Up 'usually' comes back down - The way I see it … most stocks don't just ROCKET HIGHER … they move in a range that we can exploit. Check a BMY chart to see that it 'typically' trades in a 10 point range … with no news, Wall Street seems to run it up, then pull it back … understanding that I don't get frustrated when a stock jumps higher … because (at least with the stocks I'm trading) with patience those same stocks that rocket higher will come back down giving me another chance to play them for another covered call and or a cash secured put. I guess what I'm saying is this … stocks will move higher and higher in this market … but many of those same stocks will come back …maybe not down to your original purchase price but they will fade back … you just have to have the conviction to buy back into them and execute you're selling premium plan.
  2. Learn your Covered Call Exit Strategies - Hate to sound like a broken record, but you need to understand how to use "Exit Strategies" so you can make an educated decision if it makes sense to buy back an option to take further action … whether that is selling the stock or writing the next covered call. Below are a couple good video's on the topic… be sure to LEARN THIS STUFF!!!  :)




See you NEXT month and I hope you enjoyed my first CPT Newsletter!

"Hey look, until next time, may all YOUR Covered Calls be profitable"

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Say what?
I think you understand by now that I'm not an investment adviser and can not give any specific investment advice. For those that are interested, I tell you my story and show you my trade in the "Hopes" that by seeing me you can take away a bit of information that will "up your game" … below is the CPT Newsletter disclaimer and link to my full disclaimer.


Core Position Trading, LLC is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, Core Position Trading, LLC relies upon the publishers exclusion from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Core Position Trading, LLC does not offer or provide personalized investment advice. This site and all others owned and operated by Core Position Trading, LLC are bona fide publications of general and regular circulation offering impersonal investment-related advice to member and /or prospective members.
CPTDashboard.com is an independent website. Core Position Trading, LLC does not receive compensation by any direct or indirect means from the stocks, securities and other institutions or any underwriters or dealers associated with the broader national or international forex, commodity and stock markets.
Therefore, CPTDashboard.com and Core Position Trading, LLC is exempt from the definition of investment adviser as provided under Section 202(a) (11) of the Investment Advisers Act of 1940 and corresponding state securities laws, and hence registration as such is not required. We are not a registered broker-dealer. Material provided by Core Position Trading, LLC is for informational purposes only, and that no mention of a particular security in any of our materials constitutes a recommendation to buy, sell, or hold that or any other security, or that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. To the extent that any of the information obtained from Core Position Trading, LLC may be deemed to be investment opinion, such information is impersonal and not tailored to the investment needs of any specific person. Core Position Trading, LLC does not promise, guarantee or imply verbally or in writing that any information provided through our websites, commentaries, or reports, in any printed material, or displayed on any of our websites, will result in a profit or loss.
See how I Sell Cash Secured Puts and Write Covered Calls to earn that extra income

Tuesday, January 30, 2018

The Poor Man's Real Estate - Covered Call Writing to collect monthly income checks



On Tue, Jan 30, 2018 at 2:09 PM, John Greathouse <johngreathouse51@gmail.com> wrote:
The idea is simple ... Real Estate investors buy a property and rent it out to collect monthly rental income ... hoping to both collect a profit and pay down the debt of the loan costs for purchasing the rental property. Real Estate investors hope to not incur many expenses throughout the year to ensure profitability. 

Covered Call Writers essentially do the same thing but instead of using properties they use stocks.

Let me explain what a Covered Call is ...  The option strategy where you 'Write a Covered Call' is simple ... the person writing the covered call owns at least 100 shares of stock, has the ability to sell options against it ... that person will sell someone the right but not the obligation to take theirs shares away from them for a certain price (seller dictates) and time frame determined by that same seller ... for that right, the seller gets paid a per share Premium that they keep regardless if his/her shares are ever taken away. 

Google it and you get this -  Covered call writing is simply the selling of this right to someone else in exchange for cash paid today. ... A call option is a contract that gives the buyer of the option the legal right (but not the obligation) to buy 100 shares of the underlying stock at the strike price any time before the expiration date.Feb 9, 2017

Typically Covered Call writers do this for 30 days generating a premium (mentioned above) of 3% cash on cash 20 day return on investment.

Quick example would be ... say you own ABC stock at $50 and want to sell someone the right to take your shares from you at $55 and you want to give them just 30 days to make that decision ... someone will pay you $1 per share, up front for that right. That $1 the seller (ie, owner of the shares) keeps regardless if the shares of ABC stock gets to $55 or not. Its payment for the right to buy them.

Generating $100 in 30 days ... $100 (the Covered Call premium) on $5,000 invested ($50 a share for ABC stock for 100 shares) is  +2% gain for 30 days. If his shares are taken away at $55... the Covered Call Writer makes that additional $5 per share ... or a total of $6 profit or $600 or a 12% 20 day gain.

Does THAT interest you? Well, I've done countless Covered Calls generating $300 and $400 a month on one stock ... typically I use 5 or 6 stocks collecting an average of $3,300 a month in 2017.

I DON'T want to bore you reading a 9 page blog ... I have done many video's on this topic and will share the video links below if you're interested in continuing your learning.

Youtube video's
Here's the original Poor Man's Real Estate - Covered Call video

Here's another one where I compare a rental property in Ohio vs using Microsoft stock

CorePositionTrading Blog

As always, hope you enjoyed this blog post and I wish you the Best in Trading

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Core Position Trading, LLC is not registered as an investment adviser with the U.S. Securities and Exchange Commission. Rather, Core Position Trading, LLC relies upon the publishers exclusion from the definition of investment adviser as provided under Section 202(a)(11) of the Investment Advisers Act of 1940 and corresponding state securities laws. As such, Core Position Trading, LLC does not offer or provide personalized investment advice. This site and all others owned and operated by Core Position Trading, LLC are bona fide publications of general and regular circulation offering impersonal investment-related advice to member and /or prospective members >USE AT YOU OWN RISK< and >FOR EDUCATIONAL PURPOSES ONLY<. Always do their due diligence (checking your own numbers for integrity) when putting hard earned money at risk and never risk more than you can afford to lose.

All rights reserved - Core Position Trading, LLC - 2018 - http://www.CorePositionTrading.com and http://www.CPTDashboard.com 


YT VIDEO - Difference between In The Money ITM Covered Calls vs Cash Secured Puts - I explain

CLICK THE YOUTUBE LINK TO WATCH THIS VIDEO https://youtu.be/5vIVzXvwkIc Difference between In The Money ITM Covered Calls vs Cash Secured Pu...