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Posts Tagged ‘CVX’

Update – Dividend Superstar – Chevron (CVX)

Posted by mounddweller on May 20, 2012

Fellow Traders,

It’s been a couple of weeks since my post.  A lot has happened to my positions since then.  So today I hope to update you on all of them and also tell you about some possible trades I’m looking to set-up next week.

First up is an update on my CVX trade.  As you’ll recall CVX is my very first trade using Ron Groenke’s new “Show the Trade” functionality in his VISIONS software.  As luck would have it my first trade is not going as well as I’d hoped.  Back on April 26th I bought 100 shares of CVX at $105.59 and sold an additional MAY $105 put at $2.02.  You can read my initial write-up here: https://troysmoneytree.wordpress.com/2012/04/26/new-trade-dividend-superstar-chevron/.

The objective of this trade is to sell CVX at $114.04 or better and to have the put expire OTM.  The stop loss on the stock portion of the trade is $97.14.

Friday, the stock closed at $98.46.  To avoid assignment of the stock at $105 I rolled the MAY put out and down to the SEP $100 strike for a net credit of $119.85.  CVX was trading at around $101 when I rolled the put.  Late in the trading session the market fell apart and so did CVX.   To break-even on the whole trade I need to sell CVX at $102.46 or better.

My path forward is clear.  I will honor my stop loss at $97.14 on my long stock position.  However, I intend to roll the put as necessary to exit the position with a gain.  Below is a current 1-year chart of CVX.

Regards,

Troy

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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 – DEC 2 Exp Results

Posted by mounddweller on December 2, 2011

Fellow Traders,

This will be short and sweet.  My only recommendation last week was the CVX $87.50 put.  CVX closed today at $101.69.

Regards,

Troy

 

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Weekly NP Strategy – DEC 2 Exp

Posted by mounddweller on November 25, 2011

Fellow Traders,

This week there are 92 possible trades which meet our Weekly NP Strategy selection criteria.  Only one seemed worthy of further attention.  It is a trade with Chevron, the multi-national integrated oil giant.

This trade gives us a ROIC of 0.58% with 5.74% of down-side protection.  It also lets us trade with a large cap, blue-chip.  The $87.50 strike price is below recent support of $90.

If you’re interested in seeing the other 91 possible trades you can find them here: http://finance.groups.yahoo.com/group/weeklyoptions/files/.

Have a great weekend.

Regards,

Troy

 

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