Recent content by blackjack

I neglected to mention that my previous post was based on selling out-of-the-money covered calls, not in-the-money covered calls. blackjack

Let me try to lay out the scenario one more time. It doesn't seem like I communicated my idea clearly, though I am also very aware that I am new at this, and it is very possible I'm not hearing your answers clearly. ********* Here is the idea, restated: __________________ 1) Buy 100...

here's the latest in my efforts to place orders smoothly with IB. Bottom line, IB is kicking ass (ie, doing great) I have discovered that one of my machines (the one I had been running IB on) has some sort of serious memory managemeent problem, despite having 256K ram and a 500mHz...

I forgot to notice that a big chink in the above scenario would be that you would need twice the capital to gain the same return. So, instead of getting, say $500 in premiums on $5K of XYZ long, you would be getting $500 in premiums on $10K of XYZ ($5K long and $5k short), which would cut...

Everyone: Thanks for your input and feedback as I slowly become more educated in this interesting subject of options. Here's a scenario I now am trying to find the flaw in: 1) Buy 100 shares XYZ at 50, for $5K. 2) Sell a covered call for a given premium with an expiration date in the...

i just got superstormtracker. It took several days of e-mails back and forth to get the thing cranked up. My first problem is simply finding a clear-cut tutorial There may be a tutorial--but i haven't found it yet. Still looking (that's what brought me to this page--I was using a...

Zboy2854a: You had written: "You can't really consider it a "good" thing if your account started with $5K and now is at $1250, no matter what your percentage of return is." ********* Blackjack replies: I don't think having a drastic drop in principal is invariably a bad thing...

Zboy2854a: Nice reply. Really addresses where I am at in my learning curve. I made the post that follows yours before I had read your post, so my apologies for that post not addressing what you had brought up in your post. Thanks again for the feedback. blackjack

I guess what it boils down to is that by buying covered calls in solid "reality-based" stocks (stocks that are not at all likely to go down to zero, and are issued by companies who sell boring things that people really need), even if the stock drops, say, 75% in value, you would be still be...

I'm not sure of my terminology, so I will simply explain what I did in my own words: 1) At first, I had been using the IB trading software that one can download to one's computer from the IB site. This is the IB software that limits you in that you can only use it on the site that you...

I'm brand new at options. I've never made an option trade. I need a critique of the strategy I'm considering. It has "too good to be true" written all over it. I'm seeking to find what the catch is. The strategy involves buying covered calls in an IRA account. Sample scnario...

I am a relatively new IB user. I had been most dismayed at what seemed to be the "clunkiness" of their software. But those commissions...! So I pressed on. The other day, just after the market opened, I loaded up with a bunch of CSCO and watched it head due north. Yippee! After a...

To anyone getting acquainted with IB, I highly recommend this supplemental tutorial on IB: http://www.enthios.com/trading/interactive_brokers.htm