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Archive for April 26th, 2012

New Trade – Dividend Superstar – Chevron

Posted by mounddweller on April 26, 2012

Fellow Traders,

I executed a two-part trade in my dividend superstar stock Chevron (CVX) today.  Here are the two trades I executed:

(1) Bought 100 shares CVX at $105.59

(2) STO 1 MAY $105.00 put at $2.02.

Some of you may have immediately noticed that I bought CVX without an accompanying short call position, but that I did sell a put.  Why did I do this?  Well let me tell you.  It’s because this is my first trade using Ron Groenke’s new “Show the Trade” functionality in his VISIONS software.  Ron has developed a mathematical algorithm designed to alert you to when the best possible time is to buy a stock for a quick gain.

Ron’s results in trading these short term buy/sell signals has been outstanding to say the least.  So much so that I decided I needed to try it myself.  I decided my first trial needed to be on a fairly conservative, blue-chip kind of stock.  What better choice than one of my dividend superstars, and more specifically a mega-cap, multi-national company like Chevron.

Below you can find a 1-yr chart of Chevron from Ron’s VISIONS software which shows the buy/sell recommendations from the past year.

Following the previous buy/sell signals for CVX from Ron’s “Show the Trade” algorithm over the past 12 months would have resulted in a gain of 28.44% in 3 trades.  It’s important to note that Ron’s program is not designed to predict every turn up or down in the stock.  It gets you into the trade when it appears the stock is ready to run up but then gets you out after a predetermined gain so you don’t stay in it too long and then end up giving back your gains.  It also gets you out at a predetermined loss if the trade is not going as planned or predicted by the algorithm.

The software generated the buy signal yesterday after the market close.  CVX had closed at $103.85.  The stock opened this morning at $104.00 and never looked back.  By the time I could place my trade during lunch it was over $105.00.  It closed today at $106.22.   The put I sold at $2.02 closed the day at $1.63.

Regards,

Troy

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Weekly NP Strategy – 050412 Expiration

Posted by mounddweller on April 26, 2012

Fellow Traders,

I’ve got 2 out of 81 possible trades for your consideration this week.  They are ANF and APC.  I’ve suggested ANF previously with mixed results.  I believe once it finished ITM but was an easy work out by selling the next month’s ATM covered call.  This week the $48 put looks good with 5.68% DSP and 0.79% ROIC.

I also like the looks of APC.  However, caution is advised with it because it announces 1st quarter earnings next week.  The $70 put has 6.11% DSP and 0.56% ROIC.

The other 79 trades meeting our screen criteria can be found here: http://finance.groups.yahoo.com/group/CoveredCalls-NakedPuts_OptionStrategies/files/.

Regards,

Troy

 

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