Alert guide
Four levels. Act now and Opportunity go to your phone and email; Watch and FYI are in the email and on this site. Each alert is grouped under the skill it belongs to.
| Code | Alert | When it fires |
|---|---|---|
| O1 | Hit a double (or triple) | After the buy-back fills, the stock recovers. Resell the call for at least 1% of share cost through early week 3 (0.5% near the deadline). |
| O2 | Mid-contract unwind | Deep in the money, the time value to close is 0.5% of the strike or less, and more than a week is left. The replacement must beat that cost plus 1%. |
| O3 | Roll down | Second half of the contract, the stock is below the strike, and a lower out-of-the-money strike still pays. |
| O4 | Expiration week | In the money: roll out, roll out and up, or be called. Ranked by market tone, with the numbers for each. |
| E1 | Expiration day | Same choices as O4, on the day itself. Decide between 1:00 and 3:45 PM ET. |
| R1 | Buy-back filled | Shares are uncovered. Alan's exit choices for that week, market tone and chart. |
| R2 | Convert dead money to cash | Below breakeven, bearish chart and bearish market. |
| R3 | Nearing or below breakeven | A review point, not an automatic sale. |
| R4 | Stop-loss review | 7% below the trade-open price. |
| R5 | Gap down | An opening gap of 3% or more, with Alan's checklist. |
| R6 | Earnings inside the contract | Alan's one mandatory rule: no short call through an earnings report. |
| R7 | Ex-dividend early assignment | The call's time value is less than the dividend. |
| R8 | Chart turning | New bearish crossovers. Confirmation only, never a trigger by itself. |
| R9 | Market tone changed | From the weekly report's S&P/VIX note, GMI and IBD exposure. |
| R10 | Off the passed list | Manage it this month; no new call next month. |
| H1 | Place the buy-back order | Good-'til-canceled buy to close at 20% of the premium. |
| H2 | Lower the buy-back order | Down to 10% with 14 days or less left. |
| H3 | Earnings next month | Let it be called, or let it expire and don't write again. |
| H4 | Shares without a call | No call for 3 trading days. |
| H5 | Portfolio balance | Cash reserve below 2%, or one industry above 20%. |
| H6 | Record the expiration | The expiration passed but the journal doesn't show the outcome. |
| E2 | Near-the-money call expiring | Buying it back for pennies avoids an after-hours assignment surprise. |
| E3 | Entry timing | Friday, final-week or mid-contract entries. |
| E4 | Premium too rich | Above the monthly ceiling: check why the volatility is high. |
| E5 | Price alert (optional) | 3% below the strike or 6% below entry. |
| E6 | Quick buy-back | Bought back within a week of selling. |