By Don Fanstone, Kitchener/Waterloo User Group Member
Option Blog April 19, 2015:
Use the Watchdog to Find Stocks Breaking Resistance:
The “Watch Dog” feature has value in looking for stocks breaking resistance or the MACD crossing above the signal line. The Watch Dog is a plug-in module. You can call VectorVest for a free two-week trial.
Creating a Watch Dog and using a watch-list of your favourite stocks helps to keep one aware of stocks on the move.
Viewing the graphs, looking for the DPO to be positive, and the stock price above the 30 DMA, along with other VV values provides potential candidates for Option or Stock Trades.
Sells for the Week of March 30th:
None
Buys since the Week of April 6th:
Seven (7) CGI Group (GIB.A) Aug. 46 Calls @ $11.40
Ten (10) DH Corp. (DH) Oct. 36 Calls @ $6.95
The Canadian Tire Aug 120 Call’s purchased the week previous @$15.90 are now bid $15.05, offered at $15.80.
I expect to hold CTC until the release of the earnings, about May 26th.
CGI, DH, and CTC.A are good long term option candidates.
I encourage all to read Lee Lowell’s book “Get Rich with Options”, go to VV University and watch the Video on Options, and read Dr. DiLiddo’s article in the Views Manager under Special Reports, and attend the VV Options Course.
Understand Options Before you begin to trade, there is much to learn.
DISCLAIMER: Options trading involves risk and is not suitable for everyone. The information contained in this Blog is for education and information purposes only. Example trades should not be considered as recommendations. Options training is strongly recommended before placing any trades. VectorVest offers a basic options course online and occasional intermediate options workshops in Canada each year.
Thx again. I look forward to your weekly ideas and instructions. Thx for sharing with us
Hi Don
Thanks again for your posts. I have just finished reading Lee Lowell’s book. Can’t say that I understood everything! but I will go through it again. He seems to suggest when buying calls to go deeper ITM than Delta 80% …..90 -100%. Just wondering if you would know where the P/L would be now on the CTC.A Aug 105 calls?
Thanks
Geoff
Hi Geoff:
Sorry about the delay in responding to your query.
Unfortunately, there is no option history for any given date that I am aware of. It would be great to “look back” as we are so able to do with Vector/vest.
Whatever the option strike price, the Aug 105’s Option would go down dollar for dollar with the stock. I endeavour to stay with the .80 delta and 6 months out guideline. There is nothing wrong with going deeper in the money, but it becomes a matter of the total outlay.
With respect to Lee’s book, there are a number of ways to consider option trading. For me, I am concentrating on buying Call Options and applying the KISS principle. Maybe I need to become a little more adventuresome!
Don
Hi Don
Thanks for the reply. I have Questrade and they don’t seem to have any historical data for options either. I was hoping your broker did. It would be interesting to be able to track past values and performance. I too like the KISS method and am still going over the VV Basic Course and Lee’s book plus the tutorials on QT for options so I have yet to begin trading. Actually I have the hibbie jibbies (technical term!!) and can’t seem to pull the trigger yet!
Geoff