By Don Fanstone, Member Kitchener/Waterloo User Group
Option Blog March 22, 2015:
Option Information Sources:
Current US and Canadian option “BID” and “ASK” prices are found in two different sources in addition to your own brokerage site.
US Option prices are found by clicking on View Stock News. (Default settings will take you to Yahoo Finance).
A website will appear will relevant news pertaining to the security.
On the left hand side of the information sheet is a heading “Options”
Click on “Options” and current month option prices (15 minute delay) will appear.
To find any other month, click on the month at the top left and a drop down menu will appear showing all dates of expiry.
Look for an option expiry date six months out to give the underlying security time to work.
Canadian Option prices are found at m-x.ca being the Montreal Options web site.
Click on Trading.
Click on Quotes.
A menu will appear for Options: Equities, ETF’s. Currency, and Index Derivatives.
Click on the drop down arrow or ‘check mark’ for Equities.
Use the slider-bar to find the stock symbol you are seeking. Click on the symbol you are seeking.
Call Options are on the Left, Put Options are on the Right. (15 minute delay)
Read across the top: Month, Strike Price, Bid, Ask, Last, Implied Volatility, Open Interest and Volume.
To make profitable option trades consistently, buy Deep in the Money Call Options on securities you would consider purchasing with a delta of .80 or greater.
Alternately, if in doubt, call your broker.
Option Trades since March 15th.
Bought:
5 Union Pacific RR (UNP) Aug. 100’s @ $18.20
UNP has turned up off of a bottom. Have made an early purchase as the stock price is not above the 30 DMA and the DPO is negative.
10 Dollarama (DOL) July 56’s @ $8.80
DOL will report EPS on March 25th. Expect strong EPS and dividend increase. DOL is a steady performer, excellent graph lower left to upper right. Price is above 30 DMA and DPO is positive.
10 Alimentation (ATD.B) Aug. 44’s @ $8.00
ATD profits up 36% in the third quarter. Just completed takeover of the “Pantry” gas bar outlets in the USA, and are buying Shell’s gas bars in Denmark. Price is above 30 DMA and DPO is positive
Sold:
Buy Feb. 17/15 10 Kroger (KR) July 65’s Sold March 18 @$11.40 Profit $3,238 Can.
Kroger is an excellent company, and I may repurchase. Sold to raise cash.
Buy Feb. 24/15 5 Skyworks (SWKS) @ $17.07 Aug. 75’s Sold March 20 @ $27. Profit $6,305 Can.
Skyworks has moved up very fast. SWKS is VV #1 stock last week. May rebuy with a higher strike price, (August 85’s).
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.
Hey Don,
Thanks for the Montreal Options web site. Your posts are always informative and this was no exception. I bought a copy of “Get Rich with Options” and it answered a lot of my questions. I’m going to read it again this weekend.
What search criteria do you use to identify your options purchases? Would you recommend one of the existing searches or are you using a custom search?
Thanks,
Rick
Rick:
VV has a number of great searches. I look for good companies, not always, but usually paying a dividend to show stability. I look for the stock price to over the 30DMA and the DPO to be above 0 and rising. I put a lot of faith in fundamental research along with the technical profile found on the VV graphs. Also looking for a high RS and high CI for stability and ability to bounce back.
Don
Thanks again Don! I’ll run some back tests based on your advice and see what I come up with:)
Rick