Trade King – New Rating Service

Trade King online brokerage has added the services of MarketGrader.com to its stock reporting services.

It looks like a service to give a quick useful snapshot of a company you are interested in.

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Stock Market Falls! Stock Option Sold!

In my opinion, markets like this are especially hard on covered call writers. The covered call writing strategy works best in flat or slowly rising markets. Rapidly falling stock prices have the covered call writer replacing expired positions with lower strike prices, often below the original stock purchase price, trying to recover lost ground.

I did exactly that today, I wrote an August $12.50 call on my position in GIGM for $.45. I had originally purchased the stock in May for $14.54 and sold the July $15 call. The share price has been on a serious slide and is trading at about $11.40 today.

I still believe this company is an excellent prospect for growth and expect the shares to trade in the $18 to $20 range soon. (One year maybe!?). Now I want to earn some option income and try to avoid having it called away before a nice run up. Time will tell.

Cruising along-CNBC Portfolio Challenge

All of my positions (all 4 of them!) are in good shape, so I had little to write about this week. Next week I have 2 options expiring, it looks like DNY will get called away and I will get to write another call on SLW. Both have moved up nicely over the last few days.

GIGM has fallen back to the $14.50 range. I currently have a May $15 call sold against it. But still weeks to go before expiration.

On April 4 I entered the CNBC Million Dollar Portfolio Challenge.  I am proud to report that I currently rank in the top 22%. I picked a few stocks I have been watching plus some fast movers from the Motley Fool CAPS for about 20 positions. I have made most of my gains by answering the bonus questions each day.

Afraid to Trade.com Blog – Overcoming Stock Market Fears » Rules of the Game and Victory through Manipulating Them

Afraid to Trade.com Blog – Overcoming Stock Market Fears » Rules of the Game and Victory through Manipulating Them

I know these ideas really apply to me and my fledgling effort to learn and trade.

Expiration week

I start the week with 2 stocks up and 2 down. MED & TFSM continue to fall at a rate that makes me wish I sold them two weeks ago. To me, both of these companies still have good fundamentals, and I am perplexed as to their rapid fall.

GIGM has risen above the strike price of $12.50. It has fallen as low as $10.94 during the recent dip, but recovered nicely.

SLW is starting to recover. This is a nicely profitable company whose stock price is reflective of silver prices. I currently have an April call sold on it and no plans to make any changes.

My account value has been abused pretty good over the last two weeks. However, I do not plan on changing any positions until the May options come out next week. I will then be looking to sell some option premium to start my recovery.

Excellent commentary: One Option Trading Blog

Option Trading Gurus Created A Big Market Decline! | One Option | Option Trading Blog

Great comments from one who has been through this before.

China stocks getting hammered!

Chinese stocks are down across the board today.  Shares & ETFs are off 7-9%. One of my holdings, Gigamedia Ltd. (GIGM) is off about 5% to $12.44.

The good news is that I bought in at about this level and sold the March $12.50 call for about a 6% premium. I would not be unhappy at all if the stock stayed below $12.50 until expiration and I was able sell another call. I had better be careful for what I wish for!

Actually, I expect the stock will rise back above the strike price before expiration. GIGM appears to be a company going somewhere.