ProWriter Plus v1.3.x User Manual Mar 2014
Contents
1. The Covered Call Process e The Methodology e My Covered Calls Strategy The Five Steps Explained 1 an e Yield find the highest option yields available Trend note the underlying company s share price trend Plan do a trading plan every time Diary use a trading diary Trade trade on line or personal advisor e MyCC Responsible Advisor e What You Need To Trade Covered Calls User Manual Release V1 3 x Mod Mar 2014 PUS 4 Page 5 ProWriter ProWriter 1 3 Introduction ETO s ProWriter Plus User Manual 2014 We WRITING COVERED CALL OPTIONS METHODOLOGY Covered Call Writers Buy Shares Sell Options on those shares and Earn Income A Covered Call Writer or Call Writer is someone who sells an option to someone else to buy their shares Selling a call option gives someone else the right to buy from you at a given price If that price is reached you can expect to be exercised at expiry requiring you to sell the stock at the agreed price How does this work If you own shares the share price can only go up down or sideways Others may believe the share price will go up however they may not have the funds to buy and hold the shares and then wait for the share price to go up to take a profit so they may pay you a Premium say 2 to 5 of the share price to buy your shares at a future date at a price you both agree If the share price does go up the option buyer may then Exercise the2. ProWriter Professional Covered Call Trading Software AUSTRALIAN STOCKMARKET DATA PROFESSIONAL COVERED CALL OPTIONS TRADING PLAN SYSTEM Release 1 3 x My Covered Calls Pty Ltd Mar 2014 ProWriter 1 3 ProWriter Plus User Manual 2014 This Software has been purpose designed to connect to the internet download Australian Stockmarket Data provide factual analysis of that data producing Call and Put Option Yield Reports and share price Trend Graphs and create a sophisticated Trading Plan for viewing printing or export to MS Excel or as an email attachment to say an Advisor for trading instructions It is assumed that users of the Prowriter Plus software are familiar with buy write or covered call option trading LICENCE AGREEMENT If you keep the Software You are agreeing to the terms of this Agreement Use of the Software is subject to this agreement My Covered Calls Pty Ltd grants you a non exclusive right to use this copy of the Software and accompanying materials according to the following You May a Install and use the Software on any number of computers however only one computer is to use the software at any one time Multiple use of the software at the same time is not authorised Sessions may be monitored Guard your User details and Password b Make one 1 copy of the Software for backup purposes and c Transfer the Software from one computer to another Refer right a You May Not a Modify reverse eng
3. 23 Apr 2014 2014 03 13 Fes 23 Apr 2014 2014 03 12 09 37 34 23 Apr 2014 2014 03 12 2 i 12 05 26 BS Rae Aos 2014 03 13 23 Apr 2014 2014 03 13 23 Apr 2014 2014 03 12 2014 03 13 11 18 47 PENE 23 Apr 2014 23 Apr 2014 36 51 User Manual Release V1 3 x Mod Mar 2014 Page 21 Not exercised Exercised Open Interesi BEP E Profit Return Profit Return 100 15 280 9 7 72 40 4 1 11 33 596 100 34 238 2 6 54 47 7 1 31 34 023 100 100 198 2 5 44 57 7 1 58 34 423 100 997 196 2 5 39 56 7 1 56 34 443 100 60 161 442 70 5 1 94 34 795 100 1719 126 5 347 86 2 36 35 14 100 580 126 7 3 48 87 2 4 35 138 100 700 97 68 108 2 97 35 43 Prov 4 riter ProWriter 1 3 ProWriter Plus User Manual 2014 Dividends menu opens the Dividends screens displaying any future dividends that have been announced The Dividends are automatically entered into the Trading Plan See Trading Plan PW ProWriter Plus Fill Edit viel Bete Trend Shortlist Trading Plan Calculator Window Help vr Sa oa a a Ta SIRA 5 AS ee Se Le See t 7 y N eE Uate Se ivescs save Bau OO ae Se nn Be 24 Mar 2014 07 Apr 2014 12 Mar 2014 17 Mar 2014 17 Mar 2014 03 Apr 2014 17 Mar 2014 Trend menu opens the Trend
4. File Edit Yield Dividends Trend Short List Trading Plan Calculator Window Help W ProWriter Plus Trading Pian n n a ba ee r A gt _ E u i File Edit Yield Dividends Trend Shortlist Trading Plan Calculator Window Help Not exercised Exercise Pki Tam Brokerage 13 Mar 2014 7 23 Apr 2014 13 Mar 2014 23 Apr 2014 1199 1 z 13 Mar 2014 23 Apr 2014 13 Mar 2014 oA 1736 5 1767 5 13 Mar 2014 23 Ape 2014 1189 975 160 6147 5 3 83 95 6217 5 3 87 Ea Trading Plan Generated at 2014 03 13 09 45 40 Connected Latest data received 12 Mar 2014 final 4 4 User Manual Release V1 3 x Mod Mar 2014 PLUS ext o Page 23 ProWriter Protessional Covered Call Trading Software ProWriter 1 3 ProWriter Plus User Manual 2014 Calculator menu opens the Margin Loan Leverage Calculator The Margin Loan Calculator is used to determine the cost of leverage at Loan Value Ratio LVR of 50 for the remaining period of an option contract ProWriter File Edit Yield Dividends Trend Short List Trading Plank Calculator indow Help Leverage Calculator B x Number of Shares Purchased fi ogg Price per Share Total Purchase Price Interest Aate Cost per Share 0 34875 Pernod of Margin Days 23 Cost
5. Share traders may link a cash management account to their brokering account Higher Risk If you wish to trade more aggressively and are happy to accept greater risk then note the strike price you are happy to sell a call at and consider the premium spread That is the range between the lowest premium bid and the highest premium offer Decide on the premium you want to achieve and how long you are prepared to wait for it before accepting a lower bid Write these variables down in your diary Wary User Manual Release V1 3 x Mod Mar 2014 PLUS 4 cextt Page 12 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Watch or review the premium prices at the strike you have selected and write down when you achieve it Add this amount to your bank account Please note while you hold the underlying shares their price may go up down or sideways which will be reflected in the premium price The above strategy may be based on your assessment the underlying stock price is in an upward Trend Time Efficient Writing covered calls is very time efficient You don t need to watch the market for eight hours a day not take a day off because of open positions or have updates sent to your mobile phone In fact using Prowriter Plus Reports you can quickly scan all options available for the best deal review the underlying company s share price trend create a trading plan and buy the underlying shares and write a call option s in minutes Then mon
6. 6 31 6 19 1022645 51 23 Steel Ltd ASX Fair Not exercised Exercised Contract Size Open Interest i j Price Profit Return Profit Return Sres Last Trade Expiry Month Strike Price i TEER V z NCM Newerest 12 345 0 365 12 34 12 35 12 15 12 355 12 12 3108355 1 56 Minine Lt Besik e n i di di di Paj Not exercised Exercised Se anas Last Trade Expiry Month Strike Price aio Contract Size Open Interest f j BEP e ce Profit Return Profit Return 2 03 1 5 F Te ests i z NCMVMS Eey 23 Apr 2014 9 5 2 755 100 912 275 5 22 32 5 9 0 73 9 59 NCMVI8 ee 23 Apr 2014 9 75 2 695 100 197 269 5 21 83 10 0 81 9 65 01403 17 NCMVG8 piia 23 Apr 2014 10 5 2 025 100 472 202 5 16 4 18 1 46 10 32 7014 03 12 NCMW18 psig 23 Apr 2014 11 25 1 41 100 162 141 11 42 31 5 2 55 10 935 2014 03 12 a ee z r gt er NCMVES8 oleae 23 Apr 2014 115 1 234 100 3873 123 4 10 38 9 3 15 11 111 D l4 a NCMVC8 aos 23 Apr 2014 11 75 1 067 100 317 106 7 8 64 47 2 3 82 11 278 NCMVUS en 23 Apr 2014 12 0 917 100 2330 91 7 7 43 57 2 4 63 11 428 stems tes 2014 03 13 ss ey sae SGA pase a ee eee as aue Connected Latest data received 13 Mar 2014 13 00 nd F1 for Help Wire User Manual Release V1 3 x Mod Mar 2014 PLUS BALES Page 27 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Trend Char
7. Chart select menu The company three letter code can be typed in or the company selected from the pull down menu Trend Short List Trend Chart a Select Company Company Cancel m p User Manual Release V1 3 x Mod Mar 2014 PLUS ext o Page 22 ProWriter Oo ProWriter 1 3 ProWriter Plus User Manual 2014 Short List menu opens the Short List PW ProWriter Plus Fill Edit Yield Dividends Trend Short List rading Plan Calculator Window Help Re S Yield Dividends Trend ShortList TradingPlan Calculator Window Help Company Kins Last Sale Bid Offer Open CALL options BSL Bivescope Steel Ltd sigs Sata as ASS Fair Contract Not exercised Exercised Mak Pris Pree Sin tie prone Rerun Pot Rare 275 5 22 32 Mining Lt Company Trad Expiry res ris 13 3 2 2014 03 13 itsus 2 o 269 5 a 2014 03 12 laii 202 5 NCMVGS 145 47 23 Ape 2014 10 5 202 5 gt 19 NCMW18 Ae 23 Apr 2014 11 25 SE 141 7 Bb geting 23 Apr 2014 11 5 51 2 123 4 2014 03 12 1433 73 22 APF2014 11 75 2014 03 13 11 53 12 23 Apr 2014 91 7 7 43 2 63 11 43 11 56 woe 2014 03 13 Siia NCMVS8 igazg 22 Apr 2014 125 2 6 5 35 81 5 11 69 NCMVO8 A 23 Apr 2014 12 75 5 95 7 i 11 79 amana z a FI for Help Connected Latest data received 13 Mar 2014 13 00 4 Trading Plan menu opens the Trading Plan ProWriter
8. Stocks Lita x Expiring Price Range Remove options not traded oa for more than 2 days Save Settings Left click the button to select highlight colour right click to change the font colour Normal Text Options Header AS Fair Price Font Style nee Times Ne Restore Default Load Colors Save Colors Font Size m Preview xz 1373 0 005 1 37 ompa Last Expiry Strike Contract Open Code Trade Month Price Size Interest Profit 50 Leveraged Positio ost of leverage equals approximately 0 9 Interest User Manual Release V1 3 x Mod Mar 2014 PLUS ete Page 20 Pro riter ak mip eee ProWriter 1 3 ProWriter Plus User Manual 2014 The Colour Scheme Settings can be used to vary the global colour settings Use Restore Default to return to the original colour scheme Colour Scone Setnge O Left click the button to select highlight colour right click to change the font colour Normal Text ASX Fair Price 1014 03 1 13 30 43 Font Style Times Nes 7 Font Size fa Leverage Cost Restore Default Yield menu opens the Call amp a era Hees Dividends Trend View Call Reports view Puk Reports Company Code Last Trade Expiry Month Strike Price id ASX Fair Price 2014 03 12 14 2045 77 Mar 2014 Offer a ww e Last Trade Expiry Month 2014 03 11 10 32 24
9. TIES 14 MAC pas mh All me 0 10 0 000 JT a Mar waw netquote com au Connected Latest data received 12 Mar 2014 19 00 fff TR Feb ia 0 100 20i4Jan User Manual Release V1 3 x Mod Mar 2014 Page 10 PLUS ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 PLAN DOA TRADING PLAN EVERY TIME Trading Plan Having reviewed the Yield and noted the Trend of a few likely companies next you should create a Trading Plan This can be done in tabulated form using a spreadsheet or automatically created using ProWriter Plus The plan shows you the various choices you can make regarding share entry point Strike and Premium and shows you the profit Exercised or Not Exercised Here is where you make an informed decision about the share s you are happy to hold and the call s you may write Print the plan and consider your choices reviewing the Trend and any other fundamental information such as company announcements news items reports world events like oil prices etc An example Trading Plan is shown below Please note the Premium shown is the result of the premium price which is shown in dollars multiplied by number of shares Note Option contracts in Australia are usually made up of 100 shares They can vary so always check the contract size before buying the underlying shares The Trading Plan was created with ProWriter Plus It can be printed exported to Excel or emailed as
10. in the reports Using Prowriter Plus the User can then compile a Short List from the report add Dividends due if appropriate and select options from the short list which are then added to a Trading Plan The Trading Plan which shows the share buy price option Strike price option Premium and all outcomes is then printed or exported to MS Excel and executed on line or via broker Prowriter Plus is only available from My Covered Calls or its authorised re sellers PROWRITER PLUS VERSION 1 3 ProWriter V1 2 was released on 1 July 08 and V1 3 x in 2010 This User Guide covers both versions To obtain the latest Prowriter version Members may go to the Member s area of the www mycc com au web page and download the software Installation of the new version is easy There is no need to delete the old version as ProWriter V1 3 x will install its self over the old one retaining current settings and existing Trading Plans Please let us know if there are any corrections required to this User Guide to supporit mycc com au ProWriter V1 3 x is still easy to use and has a new features including simplified log in colour scheme editing Short List retention and inclusion of dates and a C ora P in the Trading Plan If you have any questions please email support on support mycc com au Waco User Manual Release V1 3 x Mod Mar 2014 PLUS 4 cextts Page 4 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 CHAPTER 1
11. on an accurate Trading Diary to measure your return on your investment Trading If you use an on line trading platform you can go on line and Platform review live prices to buy the shares and sell the options as detailed in your plan It s a good idea to print out your trading plan a place it in plain view next to your keyboard or on a copy holder works well Live Share Current share and option prices can also been seen on the ASX s and Option web pages See www asx com au asx markets equityPrices do for Prices shares and www asx com au asx markets optionPrices do for option prices These pages are very good and display 20 minute delayed data Use the live prices to determine what prices you purchase the underlying shares at Record the share purchase prices in your Diary which can include a spread sheet for recording data Note the Strike you plan to sell the call at and record the current Premium you received at that Strike Linked Consider a linked account to your trading platform where you have Account visibility of your working capital As you buy and sell shares and options you can review the debits and credits against this account There is an old saying that if you don t know how much money you have made you have probably lost it Keeping an accurate account as part of your trading diary is an excellent metric to use to measure your success at trading Keeping accurate records may be mandatory for tax records etc
12. the trading plan icon and your current Trading Plan will appear which can be amended printed emailed etc User Manual Release V1 3 x Mod Mar 2014 PLUS Vy aa i OXERS Page 26 Pro 4 riter ProWriter 1 3 ProWriter Plus User Manual 2014 Using the ProWriter Plus Screens ProWriter Plus by design is simple in its operation You use the following main screens to derive your Trading Plan 1 Yield Call amp Put Report screen 2 Trend Chart s 3 Short List screen 4 Trading Plan screen Yield Report Screen The Yield report screen labelled the Call report or Put Report depending on which report you have opened displays the company intra day trading details and its option series sorted by Strike Price The respective Yields are shown for At In and Out of the money for each Strike and the outcome if Exercised or Not exercised The Yield is expressed as a return for the period of the option contract and in terms as a profit A check box is show adjacent to the Company Name This box is to be checked clicked using your mouse if you wish to include this company on your Short List for furth r consideration THe Trend Charts can be opened from the Yield report by clicking on the Company Mame p TIE R E jfile Edit Yield Dividends Trend Short List Trading Plan Calculator Window Help a x 7 NA A ST _ Rhoasce E m i yo a ia Se 6 27 0 08 6 27 6 28 6 19
13. 1 NCMVU8 975 160 6147 5 3 83 95 6217 5 3 87 Trading Plan Generated at 2014 03 13 14 09 55 Connected Latest data received 13 Mar 2014 14 00 Do It Yourself Print the plan and place it in prominent view Now trade the plan by logging into an online trading platform and checking the live prices both equity and option Buy the underlying shares as indicated in your plan The share price may have varied however your plan has indicated an acceptable return from selling an option over the shares so as long as the return exercised or not exercised is still OK that you are happy with then continue with your plan You may easily adjust the plan to reflect price changes and re print if desired As soon as you have purchased the underlying shares amend the buy price in your Trading Plan note the current Premium price also amending it in your plan Write sell the option as close to the Premium shown in your plan If your trading platform or brokerage account does not allow the writing of options before T 3 that is before you actually pay for the underlying shares then instruct you Advisor to write the option on your behalf Instruct your Advisor to sell write an option over the share you now own Advise the Option Series found under Company Code Expiry Date number of Option Contracts to write and Strike Price you wish to sell at Ask for the Premium spread which is the range from how much someo
14. 23 Apr 2014 13 Mar 2014 23 Apr 2014 13 Mar 2014 7 23 Apr 2014 4 13 Mar 2014 23 Apr 2014 m ProWriter Plus Trading Plan Shares 5000 10000 l 500 LS ter es Trend Shortlist TradingPlan Calculator Window es ey x Not exercised Exercised Dividends Option Share Cost Equity Strike soe Option z i BEP i fomtrac Price Brokerage price Pr ee Brokerage Net Exercise Net Value Date amp a Profit Return Brokerage Profit Return D 1024 Daa 19 34 91 E 1199 Ea 5 94 E 5999 3 19 E 1736 11 27 E 1189 58 91 160 6147 5 3 83 95 6217 5 3 87 Trading Plan Generated at 2014 03 13 14 09 55 Connected Latest data received 13 Mar 2014 14 00 User Manual Release V1 3 x Mod Mar 2014 Page 30 PLUS 4 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Executing the Trading Plan The completed Trading Plan may executed a couple of ways DIY or by instructing your Adviser to carry out a buy write order BI ProWriter Plus Trading Plan G File Edit Yield Dividends Trend ShortList TradingPlan Calculator Window Help Not exercised Exercised Dividends Equity Strike poe Option lt f f Brokerage price e Brokerage Net Exercise Net Premium Profit Return Brokerage Profit Return Company Record Date a Option Share E Code Expiry Date ontrac Price Shares Cost Value Date Close All 9 34 9
15. A TO FIND HIGH 1 Yield YIELD OPTIONS NOTE VOLITILITY TECHNICAL ANALYSIS TO SEE 2 Trend SHARE PRICE TREND WRITE A TABULATED 3 Plan TRADING PLAN 4 Diary WRITE DOWN HOW TO TRADE THE PLAN CONSIDER FUNDEMENTALS AND RECORD EVERYTHING 5 Trade TRADE THE PLAN T RECORD DAILY RESULTS The Smart Reports show the highest options Yields available on the ASX 5 User Manual Release V1 3 x Mod Mar 2014 PLUS cMr Page 8 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 YIELD FIND THE HIGHEST OPTION YIELDS AVAILABLE Smart Determine the best call option deals available on the ASX by Reports reviewing the current top option yields This can be done by logging into MyCC and selecting the Top 10 by Yield report Another smart report to look at is the All Options by Company report select current month which shows all yields for all companies for this month and automatically calculates the return for at in and out of the money You can quickly scroll through the report to see the high yield company options in out and at the money The Yield is shown under the Not Exercised and Exercised return column The Smart Reports show a yellow strip as close to at the money as mathematically possible At the money is when the Strike price is at or near the underlying company s share price The blue shading allows you to quickly compare Exercised or Not Exercised profit
16. V1 3 x Mod Mar 2014 PLUS 4 XERE Page 2 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 CONTENTS Description 0 0 INTRODUCTION Introduction 1 0 CHAPTER 1 The Covered Call Options Process The Methodology The Covered Call Option Strategy The Five Steps 1 Yield 2 Trend 3 Plan 4 Diary 5 Trade ProWriter Plus Preferred Broker 2 0 CHAPTER 2 Using ProWriter Plus About Prowriter Plus Installation Launching Prowriter Plus Welcome to Prowriter Plus Menu Bar Using the Prowriter Plus Screens 3 0 CHAPTER 3 Technical Documentation system Requirements Hardware Requirements Prowriter Plus for Windows Software Installation Waco User Manual Release V1 3 x Mod Mar 2014 PLUS C2X RS 2 Pagea ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 INTRODUCTION The successful outcome of just about anything requires a sound approach to planning The Prowriter Plus application s outcome is to create an efficient and factual Trading Plan for Covered Call Option trading Prowriter Plus is a PC based software that uses stock option data via the internet to automate the Buy Write Covered Call trading system as used by MyCC Prowriter Plus Users can quickly create a report showing all available Options both Call and Put and the Yields In At and Out of the Money for Exercised and Not Exercised outcomes Prowriter Plus also displays the respective underlying share s price Trend from six months to 5 years
17. Writer Plus Trend Chart for Bluescope Steel Ltd ProWriter Plus User Manual 2014 NOTE THE UNDERLYING COMPANY S SHARE PRICE TREND We need to determine the Trend of the underlying stock s share price as writing covered calls appears optimal in a gentle bullish market to sideways market A quick look at the underlying company s share price history can give us a sound indication of the stock s price movement up down or sideways Share price history can be displayed graphically using its recent price history charts ProWriter has included price history charts in the smart reports When you are reviewing the Top 10 by Yield report or any of the MyCC reports just click on the Company Name in the report and the chart shown below will appear The chart is a six month share price history candlestick graph including Volume and MACD Moving Average Convergence Divergence The chart below shows that BSL share price has trended upward from Oct to Mar then appears to move sideways tis a FI for Help G File Edit Yield Dividends Trend ShortList Trading Plan Calculator Window Help BSL Prev Close 6 14 0 6 07 H 6 28 L 5 98 6 19 4575108 Chg 0 05 0 81 BB 20 2 UPPER 643 LOWER 72 12 Mar 2014 Wednesday by Nah Yh i Ie h Nov poz a 457 51 MA4 265 98 Ih Lh m i raat ane ec C 2ONSIAN CFE Dec 2014Jan TI ul ut ct MACD 26 12 9 DIFF 0 14 SORTS
18. Y oVYRep CALLS ProWriter Plus User Manual 2014 Trading can be achieved by using data obtained from newspapers or some trading platforms or conveniently read from the ProWriter Plus Smart Reports which can be viewed on line and downloaded and printed For this example will assume we are using My Covered Calls ProWriter and the Smart Reports Successful call writing can be measured by getting consistent monthly cash flow from high returns How is this achieved By knowing which blue chip shares have the highest option Yield Knowing these companies share price Trend and making a simple yet effective Plan before entering the market Then Trade the Plan If you chase the highest instant yields during the market you will not have time to plan your trades effectively Remember people don t plan to fail they fail to plan My Covered Calls uses ASX derived data which is fed to the ProWriter Plus software to create smart reports that show the highest Yields and let you quickly compare deals in out and at the money Share price Trends can be instantly viewed from within the reports by clicking the respective company name We also use the Trend Chart to look for companies with a relatively low share price To be clear on this point if a share price has traded from say 3 to 4 and back to 3 then around 3 would be the LOW end of its range and around 4 would be its HIGH end see example below We always prefer t
19. an attachment to say an Advisor for further action i ProWriter Plus Trading Pian i File Edit Yield Dividends Trend ShortList TradingPlan Calculator Window Help ASX Fair Not exercised Exercised Dividends Option Share Cost Equity Strike Pri Option fomtrac Price Brokerage price P A Brokerage Net Exercise Net 0 thine Date poa ERER Profit Return Brokerage Profit Return Company Record Date s E Cade Expiry iste Sme Clone All x BHP 13 Mar 2014 gt BHpVos 13 Mar 2014 35990 23 Apr 2014 E Sell BSL C Sell DJS BSLETO 13 Mar 2014 5 30950 23 Apr 2014 13 Mar 2014 pisxp7 23 Mar 2014 33000 C Sell NCM 23 Apr 2014 13 Mar 2014 __ wemvus 13 Mar 20 2500 5 29950 Sell 23 Apr 2014 13 Mar 2014 L 160585 95 160 6147 5 3 83 95 6217 5 3 87 Ey Trading Plan Generated at 2014 03 13 09 45 40 Connected Latest data received 12 Mar 2014 final Waco User Manual Release V1 3 x Mod Mar 2014 PLUS 4 CexttE Page 11 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 DIARY USE A TRADING DIARY Trading Diary A trading diary can be used to keep a record of your investment capital share purchases call option sales other trading information and anything else you think appropriate You can use your Diary to document your thinking or to do what if scenarios Successful trading may rely
20. ase V1 3 x Mod Mar 2014 PLUS fj cece Page 15 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 File Edit Yield Dividends Trend ShortList Trading Plan Calculator Window Help A Welcome to ProWriter Plus a lallz Gall Report W Short List Wil Tre Trend Chart for BHP Billiton Ltd C n 13 Mar 2014 Gall ae Qs 23 Apr 2014 BSL Cc 13 Mar 2014 s sett SEIT 23 Apr 2014 7 30 6 25 Number of Shares Purchased f 000 Price per Share 35 99 Total Purchase Price Interest Rate Cost per Share CHAPTER 2 Using ProWriter Plus Software e About ProWriter Plus e Installation e Launching ProWriter Plus e Welcome Screen e Menu Bar e Using the ProWriter Plus Screen User Manual Release V1 3 x Mod Mar 2014 PLUS extie Page 16 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 FF Welcome to ProWriter Plus Liz Dividends Trading Plan Calculator ProWriter Plus is a PC based software that uses stock option data downloaded hourly via the internet to automate the Covered Call trading system as used by MyCC ProWriter Plus Users can quickly create a report showing all available Options both Call and Put and the Yields In At and Out of the Money for Exercised and Not Exercised outcomes ProWriter Plus also displays the respective underlying share s price Trend as a candle chart selecting from six months to 5 years in the reports Using ProWriter Pl
21. d Maintenance t Devices and Printers Scroll across to ProWriter Plus and make a Jo McAfee 2 Scroll up and or across to Programs 3 Scroll across and or up down to ProWriter m do McAfee Online Backup Default Pro j grams Microsoft Office Si ngle Click iL Microsoft Silverlight Help and Support d NVIDIA Corporation Be ProWriter wi mad ProWriter Plus ProWriter Plus has been designed as a simple executable program It creates a few working files written to your computer however has no need for a backend database All data is downloaded via the internet ProWriter Plus will open displaying the Login box Type in your Username and Tab or click to the next field and enter your password Provided ProWriter Plus is connected to the internet it will verify your details and if you are authorised activate the application Use remembered details Enter new login info Username John Smith Password eee Remember my details rea If ProWriter Plus is unable to connect to the Internet it will return Login failed Click OK connect to the Internet and try again ProWriter Plus T Error 11001 Unable to resolve server address Please check vour internet connection and try again OK lt User Manual Release V1 3 x Mod Mar 2014 nus eke gt Page 18 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Welcome to ProWriter Plus Foll
22. icrosoft Windows Vista Microsoft Windows 7 or 8 Hardware Requirements ProWriter Plus requires the following hardware IBM compatible PC with a Pentium 900Mhz processor or higher Minimum of 256Mb RAM Minimum of 150 Mb free hard disk space CD ROM Drive if using a CD Ey ProWriter Plus for Windows ProWriter Plus has been developed within a Windows environment to provide us with user friendly facilities that enable users to click on buttons using a mouse to get what they need with a minimum fuss ProWriter Plus for Windows will enable the user to use the system as a tool to carry out their task with minimal computer knowledge _ e Internet Connection ProWriter access ASX derived via a data feed that comes over the internet ProWriter also need to authenticate User via the internet Please connect your computer to the internet before using ProWriter User Manual Release V1 3 x Mod Mar 2014 PLUS a a a i CALLS Page 34 ro riter ProWriter 1 3 ProWriter Plus User Manual 2014 g Software Installation ProWriter Plus may have been supplied to you either electronically via the Internet or Email or on Compact Disk In either case installation is relatively similar Compact Disc Supply To install ProWriter Plus simply place the CD into the CD drive on your computer It is a good idea to always save and close any applications before loading this or any software
23. ineer or copy except for the backup copy the Software or accompanying materials b Rent or transfer the Software This license is not a sale Title and copyrights to the Software and accompanying materials remains with My Covered Calls Pty Ltd and its licensors Any breach terminates this Agreement LIMITED WARRANTY DISCLAIMER AND LIMIT OF LIABILITY If at any time the Software fails to operate as described in the documentation simply return the original software and accompanying material to My Covered Calls Pty Ltd and My Covered Calls Pty Ltd will replace the Software at no charge to you My Covered Calls Pty Ltd and its licensors do not warrant your data that the Software will meet your requirements or that the operation will be uninterrupted or error free THE WARRANTY ABOVE IS IN LIEU OF ALL OTHERS EITHER EXPRESS OR IMPLIED INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE SOME STATES HAVE LAWS THAT MAY RESTRICT OR PROHIBIT THE LIMITATIONS SET FORTH ABOVE AND YOUR RIGHTS UNDER LAW MAY VARY ACCORDING TO THE LAWS OF YOUR STATE My Covered Calls Pty Ltd and its licensors shall not be liable for any incidental or consequential damages including loss of data lost profits cost of cover or other special or indirect damages Your rights under law may vary GOVERNING LAW AND JURISDICTION The law of Queensland Australia governs this agreement Waco User Manual Release
24. ing on the Company Name You should also note the share price value looking for companies whose share price is trading in bottom half to bottom quarter of its overall range A feature of the Short List is the automatic inclusion of company Dividends if they are available The Dividend value and date are shown in the columns on the right You can select the options series you would like to be included in your trading Plan by clicking on the check box adjacent to each option You may select as many or as few as desired Example shown is selecting At the Money options shown by the yellow row gt roWr r merer File Edit Yield Dividends A ortList Trading Plan Calculator Window Help tions Jaek JE e 13 z ne a ae oe e Trad seo Price Sike S eee Return Profit Return Value Volume 15 02 14 65 885448 38 83721 C serey apie _ ASX Fair Contract Not exercised Dividends pe ioan Pries ma e 2014 03 12 Apr 2014 145 5 59 om EZE 17 Mar 2014 14 19 14 09 42 P 0 31 17 Mar 2014 1447 a JEXMRS EER 23 Apr 2014 15 5 7 s 2 22 530 4 5 35 0 31 17 Mar 2014 14 7 a FI for Help Connected Latest data received 13 Mar 2014 14 00 4 Selecting companies with a low share price relative to their overall performance may reduce the risk of downward movement of the stock value during the option contract period User Manual Release V1 3 x Mod Mar 2014 PLUS KLEE Page 29 ProWriter ProWri
25. itor your open positions until the end of the contract period and see if you were exercised or not exercised Only two outcomes lt may be considered good practice to allow a couple minutes each day or so to go through the ProWriter Plus reports and note which companies regularly have the highest yields and best trends It takes about 1 2 a minute to log in to Pro Writer Plus and about 1 1 2 minutes to scroll through the All Options By Company Current Month Smart Report Do this while you are checking your emails or taking a coffee break Make a note of companies you would like to keep your eye on This quickly builds your experience Follow the You can now follow the market until the option expires call day Market and see what profit you have made lt is good practice to use the Prowriter Plus Report View Selected stocks Current Month and select the companies you are trading options in and record the daily last share price strike you sold at and the premium Do this each day or at least every couple of days This habit makes trading in particular very effective as you see two very relevant things 1 how the underlying share price influences the premium and 2 how time works in your favour after you have written the call Record the movements price strike and premium in your diary or under your trading plan and look for price trends This is a bit hands on but it is what builds your experience Any business no matter what bu
26. l Release V1 3 x Mod Mar 2014 Y PLUS 3 Stee Page 25 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Welcome Screen Icons link to the same functions found on the Menu Bar selections The Yield icon opens the Call Option Report To open the Put Options Report please use the View Put Reports under the Yield Menu Dividends The above icons can be used to create a Trading Plan following the My Covered Calls option trading system Use the Edit menu to enter your Call and or Report settings then click Yield to view the Call Reports The Trend charts can be opened by clicking the Trend icon and entering the Company three letter share code You can also open the Trend charts by clicking on the Company Name in the Call amp Put Reports The Short List is automatically created and opened by checking a company box shown in the Call amp Put Reports The Short List icon takes you to the Short List after it has been created The Short List is deleted each time the Short List screen is closed The Dividends icon opens the Dividends window displaying the dates of all current future Dividends The Calculator icon opens the Calculator screen The Trading Plan screen is opened by clicking the Trading Plan icon The Trading Plan is retained for ongoing use even after the ProWriter Plus application is closed You can open ProWriter Plus anytime its connected to the internet then click on
27. ne is willing to pay for the option to how much someone is willing to accept for the option This allows you to confirm the current Premium price and that there is a taker and make a last mental check that the outcome is what you expect Instruct you broker to sell at market or best price The broker acting on Wee User Manual Release V1 3 x Mod Mar 2014 PLUS 4 Cextts Page 31 ProWiriter ProWriter 1 3 ProWriter Plus User Manual 2014 your instructions will place the order which will normally execute at the lower end of the spread which is the price someone is willing to pay for the option lf the broker advises you of the sale price then note it in your Trading Plan else review your emails or other Advisor communication to confirm the sale has been achieved and then record the actual Premium in your Trading Plan As each buy write is completed you may choose to use the colour coding in the Trading Plan to display progress of the trade Advisor Buy Write ProWriter is specifically designed to simplify covered call trading You may create the Trading Plan out side of market hours during the evening or weekend and simply email the plan to your Advisor with instructions to trade the plan Once your Trading Plan is complete print it out and review the details Use ProWriter to create an email with the Trading Plan attached by clicking on the File menu and selecting Export to Excel and Send Email If your c
28. o buy in at the low end or consider an insurance Put option See example BHP 12 Mar 2014 Wednesday Prev Close 35 93 0 35 74 H 36 03 L 35 46 C 35 99 Y 7202803 Chg 0 06 0 17 f r 4c i oo mo i1 2 i Th aw bak FT Gog eh at ye Pu pp ho h 7 i H i M Y of Oct Noy Dec 2014Jan Feb User Manual Release V1 3 x Mod Mar 2014 PLUS 4 Page ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 Ws MY COVERED CALLS STRATEGY THE FIVE STEPS EXPLAINED Introduction My Covered Calls consistent success comes from using the Yield and Trend and planning all trades every time and trading the plan Once you enter the market you can follow the live movement of the companies you have selected in the plan and buy shares and sell options as close to the plan as possible This strategy can consistently averaged results above 2 5 per month as shown in the Smart Reports Consistent monthly returns demonstrate success in writing call options In This Part There are many systems you can follow to write covered calls MyCC follows a strategy which has been around since 2005 and is covered by the following topics namely Yield find the highest option yield available 9 Trend note the underlying company s share orice trend and share price Plan do a trading plan every time Diary use a trading diar Trade trade on line or personal broker i l REVIEW ASX DAT
29. of Leverage 263 71 fh Window menu opens the Window navigation list Open windows can be Cascaded Tiled or Closed Open windows can be selected from the list ProWriter Fie Edit Yield Dividends Trend Shortlist Trading Plan Calculatok Windom Delp Cascade Welcome to ProWriter Tije Call Report Close All e 7 Welcome to Prowriter 2 Call Report Trading Plan 3 Short List W 4 Trading Plan Short List neo User Manual Release V1 3 x Mod Mar 2014 PRED PLUS ext Page 24 Proviriter ProWriter 1 3 ProWriter Plus User Manual 2014 Help menu opens the About Box displaying links to the ProWriter Plus web site and email link to ProWriter Plus Support Please email support mycc com au for help with ProWriter Plus software Phone support is available on the Member s hotline displayed on the web site home page Support for Covered Call Options should start with your Advisor then if you wish further help please contact My Covered Calls friendly staff support mycc com au We will bend over backward to help you with how to trade covered calls and in particular developing your trading plan PW ProWriter Plus Fie Edit Yield Dividends Trend Short List Trading Plan Calculator windoly Help About ProWriter Plus meesme PW ProWriter v1 3 9 by MyCC Pty Ltd www mycoveredcalls com au To view the EULA see End User Licence Agreement For support please email support mycc com au User Manua
30. omputer does not have MS Excel then use the Export to CSV capability File Edit Yield Dividends Trend Shor Download CallfPut Data Export to Excel ss FEyport to Excel and Send to Email Export to CSW O Export to CY and Send to Email Export to Word Export ko HTML Print Exit You may add additional instructions in the email such as please note the current Premium before buying the underlying shares ensuring that a return of 2 5 or better is achievable exercised or not exercise or any other instructions such as to call you first etc The Advisor works for you Make sure they earn their money Wait for the plan to be traded and record the actual buy write prices achieved in your Trading Plan and or diary Waco User Manual Release V1 3 x Mod Mar 2014 PLUS 4 cextts Page 32 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 CHAPTER 3 Technical Documentation e System Requirements e Hardware Requirements e ProWriter Plus for Windows e Internet Connection e Software Installation User Manual Release V1 3 x Mod Mar 2014 MY PLUS 3 cette Page 33 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 s 5 System Requirements ProWriter Plus has been coded in C and is supplied as an executable runtime file ProWriter Plus requires one of the following operating systems Microsoft Windows 98 Microsoft Windows 2000 Microsoft Windows XP M
31. onto your computer The installation should auto execute from here simply select your individual installation options In some cases your PC is not configured for this ProWriter Plus may be installed by going through the Windows Start Menu and selecting ProWritersetup exe form the CD drive Electronic Installation To install ProWriter Plus from the internet or from an email attachment the software will be supplied to you as various files These files should be saved into a temporary folder on your hard drive Q Now is a good time to save these files to a CD R or other storage device as a backup ProWriter Plus may now be installed by going through the Windows Start Menu and selecting ProWriter Plussetup exe from the temporary folder in which it has been saved Q Future releases of ProWriter Plus may include multi lingual support In this case simply click on the desired installation language User Manual Release V1 3 x Mod Mar 2014 MY PLUS wi C XERE Page 35 ProV riter
32. option that is buy your shares and choose to sell them at market and take a profit You get your money back for the shares and keep the Premium You always keep the premium whether exercised or not The reasonable risk you take is that the option buyer may not exercise the option because the share price went down or sideways and you keep the shares to sell another option against 80 of the time you will not be exercised which means you can sell again next month lf this sounds simple Itis If it sounds manageable risk It is Will you make huge profits overnight Probably not Will you return 30 a year Covered Call Writing is considered a low risk trading instrument because you already own the shares and are merely selling options on those shares Writing covered calls is an option related strategy you may consider for Self Managed Super Funds ETO s or Exchange Traded Options are traded on a screen based trading system called the Derivatives Trading Platform DTP ETO orders are created on ASX Participant s DTO computers and sent to all ASX Participant s screens via the ASX s host computer The trading data is managed by the ASX host computer and is distributed to brokers information vendors etc Information can be real time 20 minute delayed end of day or other variants User Manual Release V1 3 x Mod Mar 2014 PLUS 4 Page 6 ProWriter ProWriter 1 3 Trading Data Successful Call Writing High End Low End M
33. ot more to trading than stated above To learn more see the various online platforms Using a Personal Adviser is a sound way to go The broker has the knowledge of the share market and the companies to be used for the underlying shares This makes the all important selection of the underlying shares that much more objective MyCC and ProWriter also helps in this decision by presenting the companies with the highest Yield and showing the Trend and then the Adviser applies their experience in support of the choices made The Adviser can do the trading and can advise you of potential trades a User Manual Release V1 3 x Mod Mar 2014 PLUS 4 C Page 14 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 bz MY COVERED CALLS PREFFERED STOCK BROKER MyCC MyCC uses Comsec Commonwealth Bank as its preferred online Preferred Broker Comsec is National Broker Comsec has competitive brokerage rates and allows buy writes Comsec specialize in covered call option trading See details at www comsec com au bz WHAT YOU NEED TO TRADE COVERED CALLS Prerequisites Arguably you need three things to trade Covered Call Options to Trade Calls 1 The right Psychology 2 Knowledge and 3 Investment Capital or accessible Assets You supply the psychology and investment capital and use My Covered Calls and ProWriter to develop your Trading Plans The My Covered Calls Support Team is also happy to help at any time User Manual Rele
34. owing Login authentication ProWriter Plus activates the Menu and opens the Welcome screen You can navigate using either the Menu bar or the Icons on the Welcome screen r File Edit Yield Dividends Trend ShortList Trading Pj n Cdiculator Window Help Connected Latest data received 13 Mar 201 4 User Manual Release V1 3 x Mod Mar 2014 Catto Page 1 Profiter ProWriter 1 3 ProWriter Plus User Manual 2014 Menu Bar The Menu Bar has the following selections PW ProWriter Plus File Edit Yield Dividends Trend Shortlist Trading Plan Calculator Window Help File menu has Download Export amp Print functions Edit Yield Dividends Trend Shor Download Call Put Data Export to Excel Export to Excel and Send to Email Export fo CSY Export to CSY and Send to Email Export to Word Export to HTML Print Exit Edit sets Call amp Put Report Settings Colour Scheme Leverage Bar and Short List Yield Dividends Trend ShortList Trading Call Option Settings NN Put Option Settings Colour Scheme Settings for Call Report TB Stocks List All Expiring Current Month v Price Range Show All Remove options not traded On f for more than 2 days Display Call Leveraged Bar Save Settings Display Put Leveraged Bar Clear Short List when Short List is closed Colour Scheme Settings Settings for Put Report
35. s Look for a return above say 2 5 per month 30 annually For example shown below is an extract of the Top 10 by Yield report showing the return for Fortescue FMG for Mar 14 4 2 not exercised and 4 8 exercised i ProWriter Plus Call Report Mi File Edit Yield Dividends Trend ShortList TradingPlan Calculator Window Help im FMG Fortescue Metals Group 0 14 4 97 4 98 4 86 4 99 85 33946049 X Fai Not exercised Exercised S Lasi Trade Expiry Month Strike Price ZEON Contract Size Open Interest i ee Profit Return Profit Return 2014 03 12 A A z gs FMGJM9 14 25 15 27 Mar 2014 4 4 0 625 l 1000 62 5 12 58 6 5 1 31 2014 03 10 r wu a r n FMGC59 ENTIRE A 27 Mar 2014 4 51 0 25 100 3010 25 5 03 21 10 45 03 2014 03 FMGQX9 aP lt TC 4 6 1 100 9 9 13 47 11 47 59 2014 03 1 FMGMXS ee 27 Mar 2014 5 100 200 11 23 30 2014 03 11 F 7 a FMGZQ9 DEA 27 Mar 2014 71 i 100 mon COME ores 2 GOZ 09 3724 i L i i i j 2014 03 12 3 gt x y ayen FMGMRS eco 27 Mar 2014 126 i 107 FMGZT9 FMGNXS 14 28 15 2014 03 12 FMGM69 13 58 46 an N FMGRSS 2014 05 12 27 Mar 2014 5 5 0 05 5 1 01 5 11 679 oa A A gt D 1 10 99 s 10 18 22 Fl for Help Connected Latest data received 12 Mar 2014 19 00 Wary User Manual Release V1 3 x Mod Mar 2014 PLUS 4 CexEDE Page 9 ProWriter ProWriter 1 3 TREND Share Price Direction E Pro
36. siness it is must be concerned with getting a return on investment or value for money Follow the market as often as you can without letting tt overwhelm you and you will get your capital investment working for you as you write covered calls Waco User Manual Release V1 3 x Mod Mar 2014 PLUS fj XERE Page 13 ProWriter ProWriter 1 3 ProWriter Plus User Manual 2014 TRADE TRADE ON LINE OR PERSONAL BROKER Trade On Use an Online Trading Platform to trade on line You can use Line your Advisor see below and still trade like the professionals on line with appropriate software which may be free to register and use Research Quotes _ Trading ideas Quotes Quotes End of Day Prices Quotes are in real time and charting data is delayed by 20 minutes Market Watch Detailed Quote ourse Of Sales Option Series Announcements Company Research Trade History Charts Code Display BHP 36 330 t 0 340 0 95 Add to Watchlist Add to Alerts Manage Orders Buy EJ BHP BILLITON LIMITED FPO Thu 43 Mar 2014 11 18 AM Sydney time View Saved Chart Standard Default v Compare wv Upper indicators v Lower Charts up wv Chart Style v Date Range 1d 5d 1m 3m 6m YTO Ty 3y Sy 40y AN Custom Draw trend lines High 39 79 40 39 38 37 36 35 34 33 32 34 Low 30 43 30 3 Apr May Jun Ju Aug Sep Oct Nov Dex Feb Mar Advisor Use your Advisor and or trading platform to buy shares and write calls Obviously there is a l
37. t The Trend Chart is opened by clicking the Trend icon as described previously or by clicking the Company Name in the Yield Report or Short List The Trend Chart displays end of day candle chart selected for 6 Months 1 2 or 5 years share price volume and moving averages MACD 6 Months 1 Year 2 Years 5 Years Code Open High Low Last Change Volume Bid Ask NAB 26 550 27 080 26 520 27 000 0 600 2 22 3 631 113 27 000 27 000 data provided by netouote com au prices delayed 20 minutes BSL 12 Mar 2014 Wednesday Prev a Stas 6 14 0 6 07 H 6 28 L 5 985 C 6 19 Y 4575106 Chg 0 05 0 51 3 LOWER S3 21 UPOER 6 4 ils s a 6 00 H wo AC ea seca fA N L n w a l Ly a F M a i j M ALL AN i j an 3 oooooooodo rT EA sore Peut o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 eooocodeeecoood o 0 0 0 0 0 0 0 0 iecere oeeo ooooo0o coon 4168 4 i 4 i 4 20 ON PO P 4 00 S01aMar May Tul Sep Nov 2014an Mar VOLMA 60 457 51 MA 265 98 a A a 13Mar ay Sep Noy 20i4Jan Mar T DIFF 0 14 EA 0 14 MACD 0 01 E B S E E E E E E E E E E of er 20i3Mar May 2014an MAAA netquate com au User Manual Release V1 3 x Mod Mar 2014 D Page 28 Pro riter aes edu ProWriter 1 3 ProWriter Plus User Manual 2014 Short List The Short List is used to review your selection of companies that have an acceptable Yield and share price Trend You can open the Trend Chart by click
38. ter 1 3 ProWriter Plus User Manual 2014 Trading Plan ProWriter s outcome is to create a Trading Plan using Yield and Trend information quickly and accurately Dividend information is also displayed in the trading plan as this is also a consideration when selecting the underlying shares to buy The Trading Plan is an electronic spreadsheet which can be saved printed and exported The Trading Plan is created automatically from your selections in the Short List Data from the Short List is copied into the Trading Plan in the related cells You then enter the number of shares to be purchased for each company into the Shares cell and the brokerage costs into the Brokerage cells ProWriter will calculate the option contracts total share costs profits Exercised and Not Exercised and Return Exercised and Not Exercised You may edit the number of Shares Share Price Brokerage the ASX Fair Price Premium and Dividend cells by double clicking each respective cell You may also change the background colour of each cell by selecting the cell and clicking on the small triangle in the bottom right corner You may choose from White Green Yellow Red and Light Blue colours The ASX Fair Price default colour is Light Blue My File Edit Company Code oe getty DISXP NCM Cc ICM Sell NCMVU8 FI for Help Yield Dividends Record Date Expiry Date 13 Mar 2014 23 Apr 2014 13 Mar 2014
39. us the User can then compile a Short List from the report add Dividends due if appropriate and select options series from the short list which are then added to a Trading Plan The Trading Plan which shows the share buy price option Strike price option Premium and all outcomes is then printed or exported to MS Excel and executed on line or via broker ProWriter Plus is only available from My Covered Calls or its distribuitors Installation ProWriter Plus is installed by first downloading and running the install wizard It is available on CD if requested Follow the Wizard and install the software When using a CD if the auto start does not happen within a few seconds then navigate to the CD drive and double click ProWriterPlusSetup exe User Manual Release V1 3 x Mod Mar 2014 PLUS eo Mren i CALLS 5 Page 17 Pro 4 riter ProWriter 1 3 ProWriter Plus User Manual 2014 Launching ProWriter Plus The computer must be connected to the internet to allow ProWriter Plus to authenticate Users and download option stack data 8 Windows Fax and Scan A to Windows Media Center Windows Media Player A simple method of launching ProWriter Plus is Windows Update to g XPS Viewer Documents m Accessories bu l anama bj 1 Click on the Start Button do Edraw Max 5 1 l 4 EPSON Music L Games Jd Google Chrome Computer d Intel d Intel PROSet Wireless Control Panel
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