High Risk Covered Calls or Low Risk Covered Call Options

Are you an option trader ? Do you sell covered calls?

Today I just wanted to discuss how you can influence your levels of risk by several key factors when and if you sell covered calls.

For brevity, I am going to assume that you all know how to ¨sell to open¨ covered calls. If you do not know what  a covered call option is.....then this post may not be helpful.

What raises risk in a covered call scenario?

permit me to draft a list:

• Selling covered call options way out into the future...such as 6 months or even 2 years into the future. The future is unknown and the more we try to predict long term results....the more risk we may encounter....due to unexpected market movements.
• Using leverage to finance the purchase of the underlying asset. Using margin debt to finance your purchases of the underlying asset adds more risk to your portfolio. Not only must you prepare for interest payments on the money you borrow in your margin account, but you must prepare to prevent a margin call on your account, when/if your buying power becomes challenged by negative market forces or poor investing choices.
• Selling covered calls on equities that have an unproven financial record can/may add more risk to your accounts. When investors choose to sell covered calls on publicly traded companies that have no positive financial reports, they add unintended risk to their holdings.

There are several ways to minimize risk when selling covered calls on your stock portfolio. 

Permit me to draft another list:

• Sell covered calls on stock that you have paid for in full....(without leverage)
• Sell covered calls on companies with proven sound financial management, that produce healthy price to earning ratios(p/e ratio) and have a good reputation. Have a healthy respect for positive earnings. What is trendy is not always a ¨good bet¨.
• When you want to withdraw money from the premiums you have collected by selling covered calls, only do so after the contract has expired or been closed or assigned. This simple tactic will prevent unnecessary stress if/when a covered call position runs in a direction that you did not expect.
• Last but not least...do not lower the strike below your cost. This is very important, so that you do not risk losing money on the difference between your net cost of stock and the potential inflow of cash if/when a covered call that you have sold gets ¨assigned¨. To be fair, it is important to note, that there may not always be a strike price available at the correct price point to make your trade profitable. Therefore you may have to just ẅait and hold onto stock that needs time to recover from a market dip. This is another reason why it is prudent to eliminate the use of debt/margin/leverage when purchasing equities....so that you will be able to weather market ups and downs..... while maintaining a stress free and dignified investing experience.

Well.... that is all friends, for today. If you are an option trader or investor, I am sure you have discovered a plethora of methods you can use to control and/or define your risk. There is nothing more important in investing than controlling risk.

May God bless your trading and investing as well as your learning journey.

Peace,

Carla.

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Knitting is for Old Ladies She said

I was aghast that day. It was the wife of someone close to our family. She stated rather loudly that knitting was for "old ladies." 

Well, let it be said that this woman is not known for elegant comments. And so, after all these years, I have learned to just ignore ignorant comments and pursue whatever I wanna do....no matter what anyone says.

Life is too long and life is too short to really give a rip about what anyone says anyway. Do you agree?

And for the record, if I become old while still knitting the way I love to...then hallelujah...I will be a grateful camper.

And so, on that epic note, I bring to you my 3 hour slippers, which I knit without a pattern.

I don't know why I hate knitting patterns...Hmmmm....maybe it's for the same reason that I hate aerobics classes. I hate being told what to do by an instructor. I also hate being told what to do by a pattern. Lol....kinda amateur on my part...but I is what I is ")

I want to encourage those of you who, like me, have trouble following or even looking at a pattern. Just because you don't like knitting patterns, doesn't mean you shouldn't knit. You may be more creative than everyone else combined, simply because you want to do things your own way.....you prolly should!

Being creative and using what I have has allowed me to make things in a "logical" way as it pertains to my own style of doing things. I am not aiming for a pair of slippers to wear to the Met gala....I am aiming for something that fits my foot and doesn't cost too much to make. I want to be able to make it in a day or two...and I want the idea to be so simple and do-able that I could teach almost anyone on the spot to make them too. And so above, are the photos of my 3 hours slippers. Enjoy.

P.S.

Just because you don't like maps, doesn't mean you hate driving. I love driving!

Just because you don't like aerobics classes doesn't mean you hate aerobics! I love dancing!

Just because you don't follow recipes,doesn't mean you can't cook! Got it? Good :)

Peace out,

Carla.

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Networth and Comparing Celebs

As soon as you hear the sound of the word  "million" you might be tempted to be think that someone's loaded. Nah.....think again.

According to Zolo   the average Toronto single family home is a cool 1 million Canadian bucks. That's nothing to sniff at...but at the same time, it is a helpful mathematical tool to help you wrap your head around net worth stats.

(https://www.zolo.ca/toronto-real-estate/trends)

For example,  if you happen to watch any kind of reality tv, and you search up net worth estimates for some of the celebrities you might be surprised at the numbers.  Looks can be deceiving.

The reality real estate show "Selling Sunset" features lots of overdressed ladies whose net worth, for most of them is only 1-2 million. When you compare that to a Toronto home....that means most of them could only afford one home in Toronto without debt. And that doesn't include the financing of their supposedly lavish lifestyles.

For many of these reality shows, the glamour is funded by the producers of the show and therefore the clothes, shoes, hair, makeup, travel and even the cars and homes are funded by the show producers, with the express intent of making your jaw drop. Anyone can be featured in a fancy home and driving a fancy car.         It isn't rocket science.  These celebs personally juggle debt just like you might...but perhaps on a more epic scale. Letting the "show" pay for everything is par for the course....that's just how Hollywood works.

They get dolled up by professionals to make them look like billionaires....when they are just barely millionaires. Many of them are just getting started on their financial journey. 

A million dollar net worth is just not that impressive anymore.

With regard to high fashion clothes....remember that designers are usually quite delighted to loan or give their garments to celebrities in order to garner  "free" publicity for their labels. Celebrities love freebies too ")

 Enjoy the show....catch a few design or fashion ideas of your own, But don't ever believe for a minute that these celebs can afford such lavish luxury without the glitzy sham of the highly financed entertainment industry.  Entertainment is a business....a hard core industry that knows how to get eyeballs glued to the screen. It's just entertainment....it's eye candy with an end goal to make you a faithful fan.

Looking the part....is not the same as "owning the part". One plus one still equals two....and sound financial management is still your best friend.

 Be well and prosper friends. 

 The world is your oyster.

Peace,

Carla.

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When My Dream is Fulfilled....

When my dream is fulfilled ....this is what it will look like.

I will have instructed more ladies how to trade online for income from the comfort of their home or at the park or wherever they happen to be. Why? 

Because  a woman should be able to create income from exactly where she is.

I want for any Mom at home with her kids to know confidently that yes, she can do this, and that not only is it possible to thrive as a trader, but to prosper extravagantly....not only to meet her own financial needs but the needs of her children as well.

I want to leave a legacy of empowerment for women all around the globe. I want  every woman to know that this "trading/investing" livelihood is a viable option for women, young and old. There is no glass ceiling in trading ...I am happy to report.

Your only limits are your own capacity for seeking knowledge, gobbling it up, and retaining it ....and then using it in the real world. Focus is power. Accurate knowledge will feed your power.

It is not my style to tell anyone how to live or what they should do with their lives. It is simply my desire to embody and teach those chunks of knowledge, strategy and inspiration which have allowed me to prosper as a trader/investor. To show to others that women need not cower in ignorance or conformity to some antiquated idea of what it means to be a woman or a wife or a mother.

Be blessed, my friends, with what you are putting your hand to. May your choices coincide with God's will for your life and your family.

Peace,

Carla.

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Retail Respect

There is one action .....a concrete example of excellent customer service i have noticed lately.

I have experienced this numerous times from a certain financial services company. I won't mention their name because that is not my purpose today. Whenever i call this company with a question or request ...i notice that when the conversation is over...they wait for me to hang up the phone first. They literally never end the call first. That may sound like a very small gesture...

but it speaks volumes of  respect for their clientelle. 

Does your business serve the public? Are your staff closing the door hastily when the sale is complete? Or is there a more gracious exit that says to a person that you respect them as a person and not just their wallet?

peace out, 

Carla.

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God Makes It Better

Too many things now a days have artificial colors and dyes...The above was made by God. Fresh raw juice made from raw beets carrots and apples...that's it. No water added. 

Frugal side notes. The jar is upcycled and the juicer i use often was granted to me by someone who couldn't sell it to anyone at their yard sale. Free does not always mean low quality. Sometimes it just really rocks:)

Peace out, 

C.

The Podium

Where is the podium in your house? To which books are given "royal assent" by the authority figures in your home.

For me, it is the bible, of the Judeo Christian heritage, which is given that place of reverence. When a bible is read aloud, there floats about the house a bit of holy hush...a quiet thoughtfulness and pleasant absorption.

As I do have a fondness for "success" literature and "motivational gurus", I notice that every single one of them has a profound reverence for the act of reading. Every single big time billionaire places a high value on the simple and yet profound activity of reading.

Some folks prefer to listen to audio versions of their fave books, but that is still "almost" the same as reading, other than that it is more difficult to pause and reflect and/or take notes in the midst of an audio recording.

Having a physical copy of a book in your hand just lends itself to thoughtful pauses and reflection. The art of pondering, the ability to hover over an idea until one can see it from every possible angle.

So, in summary I would like to ask you gently, my good friends, relatives and associates and colleagues....who has the podium in your home?

Peace,

Carla

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Coke Pepsi Gates and Buffett

Sometimes it's interesting just to attempt to process and think through the different relationships
and allegiances that influence Wall St.

So, Mr. Bill Gates and Mr. Warren Buffett are best friends. Berkshire, Buffett's creation, owns a lot of Coca Cola shares.

In March of this year, Mr. Gates announced that he is withdrawing from the board of both Microsoft and Berkshire. Is it possible that Mr. Gates' withdrawal from these boards will help him not to feel conflicted as he moves ahead with a greater focus on his foundation?

Microsoft, this month of July 2020, announced a 5 year deal with Pepsi co, to have all it's employees use certain Microsoft products and have access to Microsoft teams. ( I'm assuming these are support personnel)

Remember that the Gates Foundation, which is run by Mr. Bill Gates and his wife Mrs. Melinda Gates, is set to receive billions of dollars from Mr. Buffett's Berkshire holdings over the coming years, as Mr. Buffett fulfills his giving pledge to donate much of his wealth to charity.

So what does this all mean? Will there be any tension because Microsoft has linked up with Pepsi, even though the Gates foundation will benefit from the heavy amount of Coca Cola shares that Berkshire holds?

Or, at the end of the day, does it not matter at all?  Maybe there are no passionate loyalties to consumer brands in the C-suites or billion dollar philanthropic powerhouses?

Just thinking aloud today.

Peace, and think on,

Carla.


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It's Frothy Earthy and Raw

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Frothy ....earthy and raw. Ahhh....the best things in life come straight from the earth. This wee sample of the raw juicing I've been doing lately just hits the spot. Contains raw beets, celery, apples, carrots and mini cucumbers....the blend tastes a bit like the store bought V8 juice that my mama used to use to make her famous homemade soup.

It's funny, that when you take things like this straight by drinking it right after you makeit...., it doesn't even seem to matter if it feels like a fruit or a veggie concoction. It just doesn't matter....

Why? Because it simply makes you feel good. Energizes and clarifies. The beets add an earthy grounding to the beverage. I hear that beets are good for your blood.

Well, that's all for now. Hope you are all able to face the new realities in your current locations, whether you are in a lockdown situation or a more "open for business" type of work climate. I pray that God will give you the patience to make your way through these times. He is still God....still good and cares about you, your needs and your household.
Peace,

sister C.

Let's Not Oversimplify the Answers to the Virus

I watch a lot of news....ok ok....maybe a little bit too much news😝. But sometimes having a bead on the news of the week gives you a unique window into where people's minds are at. ( I should add that the liberal biased media doesn't necessarily reflect the common citizen....but that's another rant for another day...)

I wanted to talk today briefly about what i see as a rather childish reaction to the virus. 

The notion that just one simple answer is going to "stop or kill the virus" is a bit naive in my humble opinion.

I see politicians and all manner of "experts" and laymen saying loudly and with "great authority" that 

if we all "just wore masks" then we would be back in Neverland. Yes, wearing a mask does appear to slow the spread....but a mask in and of itself is not going to kill anything.

I see a lot of puffed up people looking down on folks who strut through town without a mask on....as if wearing a mask is the new great Messiah. Please children, can we think a little more comprehensively than that?

There is a lot that a person can do to "fight" the virus or as I would prefer to say... "prevent illness".

Number one, we can take care of our own health by eating healthy and consuming what is my own "personal magical " potion (lol) namely....tons of raw juices and yes, my ole fave ....raw garlic.

I also want to personally say that those who are defiant to the virus in their words and lifestyle may have something good going for them. They have a defiant attitude towards sickness. They believe in their own life and that they are not going to get sick no matter what. Who are you to disagree with a person's bold faith in their own strength and life?

Now you could say, that those defiant folks are living in denial....and you might be right. But there is a LOT to be said for people who are confident in their own life force and their ability to fight disease. The mind is a VERY POWERFUL instrument in the fight for good health. You can say all you want about petri dishes and lab grown antibiotics, but good common sense supports the notion that those who love life and enjoy life to the fullest don't usually get as sick as those who hide under a rock and wait for science to rescue them.

Oh, and just so that I don't sound too much like a self help paperback....let me say for the record, that there is a God in heaven who is very much alive and able to preserve and restore life. Those who seek God usually find Him and His assistance. Secular scientists can roll their eyes now...I'm not asking for your approval.

If you are a scientist, don't worry....you'll still keep your funding, and I might just read one of your text books or soak up one of your M.I.T videos, but I will always retain my own filters and maintain that wonderfully mystical process by which christians always wind up holding onto their faith in God, in Jesus and His love for us.

We are not alone. We are not stuck. Mankind, with God's help will find our way through this. I pray that those "therapies" and "preventative" measures which don't fit into the popular medical journals will also come to light as the powerful potions that they are.

For a long time, the fields of science in North America turned their noses down on people of faith, even though it was the Christian churches that founded the biggest Ivy League schools in  the world. If we can get over our own pomp and circumstance, we just might discover that the worlds of faith, the Bible and science are perfectly good friends and can cooperate to accomplish what will become a blessing to mankind for generations to come.

Peace, my friends, stay you...and and stay well.

Carla.

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Just by using "Preview Order" you might be Swinging the Market

Quite an intriquing book....Michael Lewis' book entitled "Flash Boys: A Wall Street Revolt".

I had wondered in my own life, when it was in the order of me placing a trade, that my trade would become visible to other traders on the market. According to this book, even if you don't complete the trade by hitting "enter", and simply by using the "preview order" process offered by your broker, this trade, or rather your "intention" to place a trade has already become visible to other traders. These traders then may, if they so choose, use that knowledge to bet "ahead" of your proposed trade, thereby using a process commonly called "front running".

What do you feel about these ideas? Do they may you squirm...? Or do they just confirm what you have felt has been going on in the markets for a decade?

hmmm....much to digest.

Peace,
Carla.


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Berkshire Hathaway....Simple or Complex...You Decide

 Having spent much time reading and listening to much written and spoken about the brilliance of Warren Buffet's Berkshire Hathaway holdings and investment style...I thought I'd prattle on a bit of musings.

Derek Foster, who is known in North America as "The Lazy Investor" is a great fan of Warren Buffet's investment style especially because Mr. Buffet seems to invest in companies with "simple" products..... products such as Dairy Queen softserve cones, Duracell Batteries and Kraft Ketchup.

But then again, that is only one part of the picture.

CNBC has an interesting Berkshire Hathaway portfolio tracker...
for an example...here's a recent posting update from their site :                      https://www.cnbc.com/berkshire-hathaway-portfolio/

One can see that Mr. Buffet's company also invests heavily in financial companies, banks and three major credit card companies. It also has stakes in media companies, entertainment, and a credit ratings agency.

Such a large swath of the American economy is represented by the various stakes Mr. Buffett's company holds. Many of the companies are linked in the financial markets ....either intentionally or unintentionally....I don't know.

I would encourage you, before you jump to conclusions about the legendary Mr. Buffett, that you do more reading and thinking...and then do MORE reading and more thinking.

By the way, that is what Mr. Buffett is best known for...his utmost respect for those two major occupiers of his time.....reading and thinking.

Peace,
Carla.






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That Bird's Got Her Worm

Across the way....there's a house. At the tip of the rooftop..... birds like to rest for a moment and have a lookout.

Today, that robin commanded attention at that rooftop. She was holding the prize.... a long chubby worm dangling from her beak. That worm will feed her and her young gangly spring babes.

She is right to stand proud...to be downright cocky holding her prize up high. She could have been a snap shot from a Rocky film, like Sylvestor Stallone, after a winning match, holding his fist in the air. She has won her right to fight....and win.

And so, it is  that we must push on...until we find that thing...which we will at once, or perhaps gradually realize over time....is our own worm....our own fight worth winning.

It's feeding time. It's time to lay claim of what you can do....that will produce that livelihood.

What a great word...."livelihood". It has a much better ring to it than money.

May you find your "livelihood" soon, my dear friends. Because when you recognize the worm, and do whatever it takes to dig it up and take it home to feed your babes, it has become yours. It's not just about paying the bills...it's about a delicious livelihood.

Press on, brothers and sisters, your livelihood awaits...It may already be in your sights, awaiting your target, your perseverance, your study. You are not hallucinating. You are not living in a dream world. This is real.

That which you enjoy....can really actually become your livelihood.

Peace out,
Carla.





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This is only a test?

You can go ahead and label me a conspiracy theorist.....feel free to browse elsewhere on the net today then ok?

But, based on what I have seen occur in my beloved country of Canada, I must say...it has a lot of heads shaking in disbelief.

How can seemingly peaceful pencil pushing politicians suddenly wield such all consuming power so as to be able to tell folks, good decent hard working Canadians, that they may not earn a living?

I still can not get my head around it.Since when, did my fellow peace loving Canadian leaders suddenly become such power hungry dictators??? i am at a loss for words.

I do understand, to the best degree that I can, that the virus currently called "covid19" is a messy beast. But why did a fight against a virus transform and warp itself into a fight against the working man/woman? Isn't it a constitutional right to conduct business and provide for yourself and your family?

Isn't it always a good thing to have a "great work ethic"????

Isn't it always a good thing to go to church?

But no, the politicians  and law enforcement agencies are/have reprimanded, ticketed, fined and/or threatened people for doing just those simple two things....working and going to church.

Yes, yes, it is  May 22 , 2020, and before I blow a gasket, I must admit that things are slowly starting to re-open up in Ontario. But the opening is slow and painful. I still find myself avoiding grocery shopping because i hate the thought of being forced to wait outside in lineups just for the mere privilege of buying food.

I wonder, indulge me for a moment, if the powers that be, are just doing some kind of social experiment to see how asleep we are? Are "they" testing us to see how much of our freedom we will peacefully give up, all in the pretense of "protecting health"???

Is it a coincidence that those who are forcing the lockdowns upon us, are the ones whose paycheques have not been torn up during the lock down. Perhaps they are even getting a "pandemic pay bump" to deal with the extra stress of leadership during a national/global pandemic.

To say that our leaders are out of touch with the average working Canadian is an understatement. This season is a test of martial law....a test of a police state in our beautiful peaceful country.
We shall not allow this to occur without proper response. Take notes my friends and speak to your friends and family about this situation. It must not go on without discussion and prompt and very verbal public discussion. We do live in a democratic country do we not?
These massive sweeping public changes which are dramatically affecting all aspects of life in Canada must be held up to public scrutiny. Some of these issues should have been put up to a public vote before they were so aggressively rolled out upon us like a steam roller. Every Canadian has a vote and a voice. Remember this. Use your voice....and use your vote.

Please, my fellow Canadians, do not forget this season, even when things get back to more "normalcy".
The freedoms that we calmly let go of now.... under the "excuse of a virus", will not be easily regained back to their former glory.

And while I am on a roll, permit me to mention that the new "app" that will be enforced upon our cell phones for the purported purpose of "contact tracing" are going to become a new "spying" tool by which the government can glean all kinds of personal data about us.

Fight for your freedom to go to church and to go to work...whether you are self employed or otherwise. Also, fight for protections for your privacy, even if the government "enforces" contact tracing. The government does not belong in your cell phone.

Not peaceful today,
Carla.


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Encouragement for You

I just want to send a few brief words of encouragement to you today...my readers. Even if this is the first time you are visiting my blog...you are welcome. If you've been reading my blurbs for years...thank you quite hugely for your loyalty :)

So, today, is May 16, 2020 and Ontario is starting it's phase 1 of re-opening after having virtually everything grounded and halted since approximately March 15 2020.

I don't know about you....but the seclusion has been exhausting. Although much of my day is spent quietly, I didn't realize that I am much more sociable than I give myself credit for.
Maybe you too, have begun to realize how much you appreciate folks, like your barber, hair salon, nail salon, or the schools that educate your children. Maybe you have a newfound appreciation for the gift of a full fridge and the ability to pay your bills.

This modest first step in re-opening is a sign. It is a sign that better things are on the horizon. We must never allow depression or the struggles of life to squash us down. You must be your own best friend....your own cheer leader....your own spiritual guru.

Do you have someone around you who encourages you? Someone you can talk to who can speak life and hope and encouragement into your thinking?

I am not talking about blind encouragement.  I am not talking about encouraging people to do ridiculous or dangerous or illegal things. I am talking about....simple encouragement that will help you accomplish whatever you want to do with your life.

You life was given to you by God. He will help you embrace it.

I feel like Spring has finally sprung in our neck of the woods, with the trees starting to pop out their new buds and frills.

So, if you have been struggling with a lack of "zest" during this season of challenges, I want to give you a boost of hope today. I want to give you a friendly boost in the arm, to let you know that it's ok to believe in your dreams again. Don't let anyone or anything discourage you.

with kindness,

Carla





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