Friday’s SOTW featured a terrific presentation by Cathy O’Nan called the 7 Secrets to Making Money with VectorVest. I hope you’ll join me Monday at 1:00 p.m. EST for our free webinar review of the SOTW. We’ll answer any questions you might have about the 7 secrets and any aspect of using your VectorVest program. We’ll also study in Realtime how the market is starting out the week and look at a few leading stocks using the DERBY. Finally, I’ve already been asked to discuss Dr. DiLiddo’s options trade on SCHULUMBERGER described below, so we’ll take some time on that tomorrow. To register for the webinar, go to Friday’s Views, or just click on the link below:
A BETTER WAY TO BUY OIL STOCKS. Our Founder, Dr. Bart DiLiddo put forward his opinion in Friday’s essay that selling Put Leaps is a better way to buy oil stocks right now because there’s so much uncertainty in the oil patch. Oil stocks have certainly been volatile, up sharply one day and then down the next with ebb and flow of crude oil prices. Dr. DiLiddo said he sold Schulumberger Put Leaps as follows: 10 SLB JAN 15, 2016 PUTS @ 12.37. That means he received a credit of $1,237 x 10 = $12,370. Not too bad. He receives that income immediately. On the downside, the trade would likely require considerable margin which does tie up cash. Dr. DiLiddo’s breakeven is around $78. In other words, if SLB were to fall below $78 by expiration Jan 15, 2016, he would likely have to buy the stock and his option trade would then be in a losing position. In his essay he said if that happened he would continue to own the stock and sell Covered Calls against it. I believe his view would be that at $78 he would be buying SLB at a bargain price, and he would be prepared to wait for it to come back up. We’ll set up the trade during tomorrow’s webinar
RECORDING: It’s always great to have your participation in our webinars, however, if you just can’t make the live event, make sure you register in advance to receive an email link to the recording as soon as it’s available. The recording will also be available the next day under the archived webinars tab at: https://vectorvestca.azurewebsites.net/events.
PROGRAM NOTE: We won’t do a special Wednesday CA Colour Guard Report this week due to New Year’s Eve. However, if you haven’t yet viewed last Tuesday’s CA Colour Guard video, you’ll find the link in our VectorVest Canada Investment Blog at https://vectorvestca.azurewebsites.net/cablog