Recent content by boots

I agree with you (I think) I think it is much better to trade 10 stocks at $100 risk than 1 stock at $1,000 risk. Smooths your equity curve, spreads the risk, allows you to gradually change from one direction to the next, cuts way down on the EMOTION. Liquidity is a big factor and that is...

Hello Chuck, This maybe what I have been looking for but the page you gave the link for has very little info. For one thing, when you do start charging what will the fee be? I am under the impression IB only provides six months of historical data. Is that correct? Is the platform the...

try this one, it is free. WWW.hoadley.net/options/barrierprobs.aspx A note to clarify...what I have been doing the most is ratio writes. Just closed one I had on WFR. Opened it on June 13th with 2 to 1 July 30 calls. Rolled it a few days ago to August but just sold one Aug 30 call and...

Actually I have just started using these collars. Most of what I was doing was high risk covered calls and I would have to go back and look but I don't think a single one did what it was suppose to. I had to roll up and down and over and under and I have had a ball fooling with it. Which...

What if you just roll down the Put and leave the Call alone? (The more I learn the more I don't understand how I have been doing so well....dumb luck I guess) boots

>If WLP drops to $70, have you or have you not lost money on the position (again ignoring time value etc.)?< Yes, I now understand what you mean by it losing money. Hmmm, not sure where all this leaves me. Might have to stay here and think all day...hehe boots

>It's a common mistake to think you will not lose any money with a long stock and long put position when the underyling goes down.< I will admit I am making that mistake. I can understand that if you buy a put and a stock and the stock goes down you are losing the Time value of the Put and...

Hosewater, Hey, that would be great. Keep me informed. I would like to see how you handle them. Maybe I can learn something. As for rolling up the Put, I have never done that. I have done some long phase leg-ins, putting on the write and then waiting for the stock to go up and buying a Put...

I may have answered my own question. Tradestation has a pretty good Option Modeler and it tells me that all else being equal if TEX drops to $35 in three months the Jan 07 35 call will be worth $3 more than the $45 call. So if TEX drops to $35 in the next three months I can buy the 45 call back...

A little follow up. First I have not directly answered everybodies questions but I think I have answered them all indirectly. If not then I would be glad to. Second, it appears to me the real opportunity in options is being able to perceive what will happen to a structured trade (ie...

Here is my thought on the follow up action. It could easily be flawed so feel free to comment. A few days ago you could have put one of these trades on in TEX and recieved a premium on the Jan 07 45 call of $5.59 ($7.80 - $2.21 ITM). Now lets say in the next three months the stock goes to...

momoneythansens, <1) WLP plummets = 0% annual risk free return!> I would agree that on the face of these the Expected return would not be much better than Govs. My thought process is this...... 1) If the stock stays where it is or goes up you get a nice easy return and spend very...

Don, >.............Relative to your 1st play with the 6.88% return, what strike price did you use and what is the expiration date? My guess is that you might be overlooking the ITM amount of one of the contracts. That is, for a $75 strike "net income" would only be $2.56.> You are...

That is actually what I was able to put the trade on at this morning at 11:05. Stock at 77.44 call at 7.9 put at 2.9 Net income was $5 at 77.44. At this point the stock is 77.30 and the net on the options is $4.8 for a 6.88% return and a MAX loss of Zip. Might be able to leg in and...

Sorry, been on the road for a few weeks. Here is one. WLP @77.44 Sell Jan 07 75 call for $7.9 Buy Jan 07 72.5 put for $2.9 Should give you a little over 7% annual risk free return. Not a great one but not bad. If you guys see any problems with this I am all ears. It appears there...