Writing Covered Calls

Many financial advisors and more than a dozen websites advocate writing (selling) covered calls as a sound investment strategy. Thousands of subscribers pay millions of dollars to get advice on profitable covered calls to write.

I believe they are wasting their money. Writing covered calls only limits the potential gain you might enjoy.

Let’s take an example. You buy 100 shares of XYZ for $80 and write (sell) an at-the-money two-month call ($80 strike price) for $4.00. If the stock stays flat, you will earn 5% on your money for the period (plus collect a dividend if there is one). If you can do this six times a year (write a two-month call six times), you will earn 30% annually (less commissions); or so goes the promise.

(In the last chapter we showed that selling calls against a one-year option rather than stock results in a hypothetical 300% gain if the stock stays absolutely flat, or ten times the amount you could earn by writing calls against the stock.)

In this covered call-writing example, 30% is the maximum amount you can earn. No matter how high XYZ goes in price, you can never earn more than 30%. The bottom line truth is that you will NEVER earn that 30%. The reason is that no stock price ever stays the same. If the stock goes up by $5 in the first 60 days, you will either lose your stock (through exercise), or more likely, you will buy back the call you wrote, paying $5, and losing $1 on the call (but making $5 on the increase in the price of the stock). So for the first 60 days, you actually made a 5% net gain ($4 net gain on a $80 stock).

Presumably, you then sell another 60-day at-the-money call (now at the $85 strike) and collect perhaps $4.25. Then the stock falls back to $80. In this time period, you gain $4.25 from selling the call but you lose $5 in stock value for a net loss of $.75.

Your gains on the calls you wrote now total $3.25 for a 120-day period (you gained $4.00 in the first 60-day period and lost $.75 in hoped would earn you 30% for the year). At this rate (four months of activity), your annual return will be $9.75, or 12.2% on the original $80 stock. Commissions on six sales of calls over the year will considerably reduce this return — to 10% or so. Not a bad return, but certainly not 30%. And it’s an awful lot of work for a 10% return.

For a full explanation of an option strategy that is designed to outperform writing covered calls, check out Dr. Terry Allen’s Free Report on calendar spreads.

May 22, 2023

Dear [[firstname]],

I didn’t send a newsletter for the past couple of weeks because I didn’t like how the trades were setting up early in the week. One moved against us, so it didn’t look as attractive. The other moved in our direction, so there wasn’t enough credit available for a viable trade.

It’s not right to send a newsletter for the mere sake of sending a newsletter. If the trade is good, I’ll give it to you. If not, I’ll hold off. And you’ll just have to go without our incredible offers for a week or two!

With that said, here is your Option Trade of the Week, as included in this past weekend’s Saturday Report for our Terry’s Tips Insider Members. This is a post-earnings bullish trade on a gaming company that looks better today than it did over the weekend. In fact, you should be able to get an extra 10% in credit. Good luck with the trade!

But first, our Honey Badger portfolio is on a huge roll. I know I keep saying that every week, but it’s now up a mammoth 45% for 2023. Of course, don’t forget that our portfolios beat their underlying stock performance by an average of 22% in 2022.

Don’t miss out on the profits. For our loyal (thanks for that, by the way) newsletter subscribers, I’m keeping the sale going that saves you more than 50% on a monthly subscription to Terry’s Tips.

You’ll get …

A month of all trade alerts in our four portfolios, giving detailed instructions for entering and exiting positions.
Four to five (depending on the month) weekly issues of our Saturday Report, which shows all the trades and positions for our four portfolios, a discussion of the week’s trading activity and early access to our Option Trade of the Week.
Instructions on how to execute the 10K Strategy on your own.
A 14-day options tutorial on the opportunities and risks of trading options.
Our updated 10K Strategy white paper, a thorough discussion of the strategy basics and tactics.
Full-member access to all our premium special reports that can make you a wiser and more profitable options trader.

To become a Terry’s Tips Insider Member, just Click Here, select Sign Up Now and use Coupon Code D21M to start a monthly subscription to Terry’s Tips for half off. You can cancel after a month but, of course, still keep all the valuable reports.

We look forward to having you join us! Now on to the trade …

Chip off the Old BLOX

Looking back on recent trades in this space, we’re a little heavy on the bearish side of the ledger. Without forecasting where the market is headed (I don’t do forecasts), I feel that we need a put spread to inject some bullishness. One name that recently popped up is Roblox (RBLX), an online entertainment platform provider.

RBLX reported earnings last week that were mixed. The company suffered a wider loss than a year earlier, which came in lower than analysts were expecting. But revenue came in higher than estimates. One important metric for RBLX is bookings, which grew 22% for the quarter and beat the analyst forecast. The stock jumped 10% in the ensuing two days, pushing it above both its 20-day and 200-day moving average. The shares have traded sideways since then and currently sit between the 20-day and 50-day moving averages.

Analysts mostly cheered the earnings news, giving the stock a couple of upgrades and a few target price increases (there was one decrease). But overall, analysts are lukewarm toward the shares, averaging between a buy and hold. The average target price is also underwhelming, sitting just 6% above Friday’s close. But I’m OK with that because it tells me there’s ample room for upgrades. That’s evident from the two upgrades we saw last week even though the company fell short of the earnings estimate.

This trade is based on RBLX benefiting from its bookings strength and perhaps some more love from analysts. We’re going with a neutral-to-bullish put spread on RBLX with the short put strike (green line) below both the 20-day (blue line) and 200-day (red line) moving averages. If you agree that RBLX will stay atop these trendlines, consider the following credit spread trade that relies on the stock staying above $37 through expiration in 6 weeks:

Buy to Open the RBLX 30 Jun 34 put (RBLX230630P34)
Sell to Open the RBLX 30 Jun 37 put (RBLX230630P37) for a credit of $0.65 (selling a vertical)

This credit is $0.02 less than the mid-point price of the spread at Friday’s $40.01 close. Unless RBLX surges at the open on Monday, you should be able to get close to that price.

The commission on this trade should be no more than $1.30 per spread. Each spread would then yield $63.70. This trade reduces your buying power by $300, making your net investment $236.30 per spread ($300 – $63.70). If RBLX closes above $37 on June 30, all options will expire worthless and your return on the spread would be 27% ($63.70/$236.30).

Any questions? Email Jon@terrystips.com. Thank you again for being a part of the Terry’s Tips newsletter.

Happy trading,

Jon

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May 17, 2023

The phone has a 6.7-inch 60Hz AMOLED panel, and it features an Exynos 9825 chipset with plenty of power and a 64MP camera that takes great shots. The standout feature is the gargantuan 7000mAh battery with 25W fast charging. The F62 costs more at ₹23,999 ($325), but then again, you are getting a lot of phone here. On average, my smartphone lived on a single charge for 7-8 hours of active screen in 120 Hz mode.

Xiaomi isn’t positioning this phone as a camera-focused option, and that is evident in the resultant shots.
However, this is not solving all of the problems and as of now, there is not a global solution.
The main one is 50 megapixels in resolution and has an f/1.8 aperture.

Other than these two things the rest of the hardware design is identical to that of the Poco X3 NFC. This means, the same camera module layout along with the snappy fingerprint scanner built into the power button. The IR blaster is still there on the top rail along with the headphone jack on the bottom. And yes, that reminded me about the haptics on this phone.

Other phones may get the Snapdragon 860, but they don’t have it at the time of review. The Poco X3 Pro lost ground in the camera section of this review, but it makes up a good deal of it with its chipset. That’s the Snapdragon 860, a processor that should interest many of you. The Poco X3 Pro can take nice photos, better ones than the Microsoft Surface Duo (original cost $1400 / about £1,075), which we tried recently.

The brightness is almost always enough, but the auto brightness does not work quite correctly and often you have to move the slider manually.
The Poco X3 Pro supports LDAC, SBC, AAC, aptX, and aptxHD Bluetooth codecs.
They offer excellent battery life, along with a decent camera setup.
Color reproduction is on the saturated side, but that’s not necessarily a bad thing.
The marquee feature on the POCO X3 Pro is the Snapdragon 860 chipset.
I’m actually more impressed Poco included support Stock Firmware for 26W USB-PD that’s almost as fast and works with more plugs.

The form factor is similar too, but this time Poco has worked on the weight and thickness, as X3 Pro is 9.4mm thick compared to 10.1mm on the X3. Since the X3 received a lot of criticism about its weight this time X3 Pro weighs about 213 grams as per the brand. But in our testing, it came out to be 215 grams, which is slightly lighter when compared to X3 with 225 grams. So, I would say Poco has definitely worked on the feedback, but the phone still feels bulky and heavy in hand, I hope Poco works to refine it more in the next model. By default, the phone delivers 12 MP shots that contain a good amount of detail and natural colours.

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May 15, 2023

Articles

Personal Thinking
Romanian Girls Interesting Truth and Myths
Use Dating Online to Find Your Ideal Bosnian Singles

Free sites spend less time verifying accounts and eliminating bots and scammers, and have less robust matchmaking, meaning you’ll need to look for a match yourself. Finding the perfect international dating site can be a challenge. Some are filled with scammers or fake profiles, while others have poor matchmaking algorithms or may not be suitable for what you want. JDate is best for Jewish people looking for Jewish partners. While most people on the site are looking for a serious relationship, finding people interested in hookups or a more casual dating experience is also possible. One important feature that makes JDate the best international dating app for Jews is its intensive screening process to prevent harassment and abuse. Elite Singles welcomes individuals of any race, gender, or sexual orientation, which many other international dating services fail to offer. The site works best for people who aren’t interested in casual dating or hookups and prefer forming serious, deep connections.

Talking about girls / women in Romania is very difficult, as there’s always a risk to generalize when it’s not the case.
Bosnia and Herzegovina is a wonderful nation with really kind people.
Many people know about Romania thanks to Bram Stoker’s Count Dracula and his Brukenthal Palace located in Transylvania.
It is a predominantly mountainous country that is known for many thermal spas.
You will lose a few points if your bride feels that you are taking her for granted.
One of these names is sure to inspire any nature lovers out there.

AnastasiaDate is equivalent to a goldmine of single Romanian https://topinternationaldatingsites.com/ women and Romanian brides. There are over 1.5 million profiles, with the most popular age group being years old. Its matching algorithm has a 65% accuracy, with a high reply rate (98%). It definitely your best chance to meet Romanian women online. Romanian girls are hardworking and very family-oriented, thanks to their culture. The girl you date will have strong maternal instincts, and if you decide to build a life together, she’ll put her heart and soul into raising and taking care of your future family.

Personal Attitudes

Hence, their mission is to create a comfortable atmosphere in their houses to please their men in various ways. As a rule, girls are polite, quiet, and respectful towards their husbands. Race and even nationality often become important factors in online dating. In turn, girls from many Asian countries exclusively prefer white men, especially Americans. It is the basic feature of the website to start dating Cambodian women. Check the communities on the matter of them and enjoy cheerful minutes with pretty brides. There are some dating sites to meet Cambodian brides online. Cambodia is the place for pleasure and enjoyment on the edge of sunny Asia.

Romanian Ladies Interesting Data and Misguided beliefs

One of the top-rated dating sites, AsianFeels, is a great choice for those looking for support and simple human relationships based on love and honesty. The site has a good potential and success rate with dozens of advanced search filters, quality profiles, and complete privacy. Fine Cambodian women like to laugh and have a good time with friends. Although these ladies are not party girls, they welcome guests with pleasure. They are also friendly to their husbands’ friends, relatives, bosses, and co-workers. Yet, why do Cambodian women like white men when they have many locals with the same views at their fingertips?

Use Dating Online to Find Your Ideal Bosnian Singles

Therefore, Cambodian brides do not want to live in poverty and use every opportunity to leave their country for good. There are a lot of ways to get Cambodian mail order brides, but only one is effective. Online dating websites are for reaching your desired results. In contrast to the previous two dating communities, this one has a great number of users. So, you have the ongoing and increasing chances to meet your love there.

To sum up, Cambodian brides are charming, gorgeous, stunning, and simply kind Asian ladies. A lot of women looking for American men on online dating websites. They started dating shortly after they met and have been together ever since. Kim and Sovann’s story is just one of many cambodian couples who have found love through online dating. Cambodian dating sites are a great way to meet eligible singles from all over the country. There are many single Cambodian women on dating websites. They seek love and happiness with men from the USA and other highly-developed economies to build families and raise children in a stable and favorable environment. Online dating helps girls match potential partners, avoiding pressure to be “a perfect woman for a man,” typical for Cambodian society.

Additionally, Barcode Bar, Temple Club, and The Angkor What? Bar are the greatest places in Siem Reap for night-time entertainment. Phnom Penh is the capital of Cambodia and the biggest city in the country, so there is no way we could have skipped it when creating this list. Phnom Penh is a city where you can do something new every day and never run out of ideas. But if you want to know where to meet Cambodian singles in Phnom Penh, we have a few suggestions. The Malis, Topaz, and Digby’s restaurants are very attractive to the female population of Phnom Penh, and the Sound Club, Love, and Secrets night clubs are great for a night out. As we said in the introduction, these are only general recommendations.

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Writing Covered Calls

TERRY’S TIPS STOCK OPTIONS TRADING BLOG

Personal Attitudes

Romanian Ladies Interesting Data and Misguided beliefs

Use Dating Online to Find Your Ideal Bosnian Singles

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Making 36%

Writing Covered Calls

TERRY’S TIPS STOCK OPTIONS TRADING BLOG

Personal Attitudes

Romanian Ladies Interesting Data and Misguided beliefs

Use Dating Online to Find Your Ideal Bosnian Singles

Upcoming Market Dates:

Making 36%

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