In reality an advisor almost all of the time should not always guide you to only their site when using financials tools or getting fiscal info on stocks they are not now advising. The below information are queries and responses that I Chuck Hughes have given to my advisory members.
As an example on the Option Spread Trades that if the debit is larger than 8 points for a 10 point spread or 12 for a 15 point spread then not to initiate it. You need a 25% return potential. 2/8 = 25%, 3/12 = 25%. With the 20 point spread you want 4 points of potential profit 4/16 = 25%
If you are going to purchase a stock using an advisory formula you need to ask questions and understand the formula. For instance if you bought OKS april 12 50 call at $2.85 on 12-1-11.Showing 225.00 profit so far. Ask is 6.00…bid is 2.85. The question you need to ask Why such a spread between ask and bid? Is this common or is it as the expiritation is so far out? The answer to such a questions would be “Some stocks have a wide spread. I utilize a limit order to try to enter right between the bid and ask.”
When you don't know ask for guidance. For instance: Chuck Hughes,
I've been watching AAPL price climb higher and higher since the peak on 7/26. All the while, the MACD has been making new lower highs. Many people would say this is a set up for a severe price decline in AAPL. Does your system concern itself with such divergences? If you're using a good counsellor he should respond in a timely matter in ths way. The 50/100 day ema and major trend systems are both on a buy for AAPL. I think it's the most undervalued quality expansion stock out there and am purchasing any dips.
Employing a Advisory type formula should look like. What is the formula for working out pc return on paired trades? For example: SINA Option Spread entered 12/7/10 and exited 11/23/11 Profit was $1540 for a pc return of 105.5%. How do you work out this? Was the total investment $6160 (65 call) $4700 (125 call) = $10860? Cost was 6,160 – 4,700 = 1,460 Divide profit 1,540 by cost 1,460 = 105.5 % return
Question:
Please provide updated information concerning internet site with New 52 week high. It doesn't work. See page 91:
Down Loading the New 52-Week New High List
The new 52-week high list can be simply downloaded from www.msn.com.
1. Sign in to MSN.com and click ‘Money ‘
2. Under Investing click ‘Stock Research ‘
3. Under Find Stocks click ‘Stock Power Searches ‘
4. Under Power Searches click ‘52 Week Highs ‘
Answer: MSN does not display it anymore so I use barchart.com which is even better than MSN.
Question:
I have two questions on the long term trend using one month/20 month EMA.
How do you generate one month price graph? Is it an easy 30 days MA or
single price/month on one special day? Also I have read the Q&A section and it appears, like me, many are mystified about taking trades already advocated (some over 12 months back) that are still marked a “buy”. Aren't you running the risk of being on the end of a trade when the recommendation is so old?; i.e, a higher chance the trade will go against you before you are profit-making.
Similarly, in the marketing materials, the focus of CFT was “…do what I do when I do it..” The operative word being “when.” So again the instructions appear paradoxical, and at a minimum baffling.
Answer: It is available on stockcharts.com with the basic subscription. To reply to the 2nd part of the question; there is no way to envision the way the current trades labeled as a buy are going to perform going forward. Many of the oldest trades are the best performing.
Question:
I'm confused on a stated dividend return. For VZ you stated that the dividend was 4.88 which reduces the price of the protecting 35 DividendInvestor.com has the quarterly dividend at $0.50 which would be $50/100shares/quarter or $200 annual=2.0/share annually. I'm clearly missing something and hope your number is right. How was the 4.88 dividend turned up at?
Answer: As mentioned in the trade alert that's the dividend paid from now. Till Jan 2014 option expiration if the quarterly dividend is maintained.
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This post was written by admin on January 12, 2012
