Recent content by Cereal

Final Result [of a perfect trade] ----------- UPRO closed at 89.04 on Friday 21st Dec Was assigned and thus gave stock to buyer of call. Calculation of Result: - $8704 Initial investment in 100 Stock (86.99 per share + commission) + $ 143.47 Rcvd for sale of covered call Strike 89...

If you say so...

No, it's never easy, that's for sure. But you have to agree that buying a 3X sp500 ETF in December is not the worst of trade probabilities. Nor is selling a covered call with only 10 days left for expiry.

The covered call part of the trade resolves in the next 10 days, we shall see...

I said a coffee or a beer...that's all this trade gives; it's only one contract. Are there $5 "gift cards" ? If there are and if by options expiry the options side of the trade is succesful I will gift that. EDIT: I looked at the gift cards and one can set the dollar amount. Give me your...

After considering the advice received I have finally sold a very near term covered call that I calculated still gives a decent ROI plus lowers the risk of holding UPRO for a lengthy period in these volatile and uncertain markets. Yes, I gladly give up the opportunity cost of higher gains...

Thanks you both. O should have clarified that I already have the shares, and that I definitively did not buy them because of the covered call possibility, just simply because I wanted to catch some of the possible "Santa Claus Rally" The covered call is just a possibility I saw today and...

Thanks, you are right in that the stock going much lower is a bad deal. When I said too good to be true I meant the return percentage should the stock go over 87.04 from now till then. Opportunity cost of losing bigger gains on the stock can be worth it with a > 20% return...

Please, I appreciate any opinions on the following potential trade: I bought 100 stock UPRO for 87.04 per share. What do you think of the following covered call at today's prices? : Sell Covered Call Expiry Jan14 strike price $90 for 14.80. My calculation of possible ROI are as...

These are two PAPER trades I opened yesterday and today just to do some testing buying deep ITM CALLS which have: DELTA practically = 1 Extrinsic Value between 0 and 0.13 1) Bought one SLV MAR13 $14 Call for 19.20 (stock was at 33.21) 2) Bought one SLV JAN13 $19 Call for 14.35 (stock...

The for dummies explanation of why Gold and Silver is......: To ask yourself the Right Question :p http://www.youtube.com/watch?v=z9MVNinXuxk

Quote from Cereal: My new metals related positions opened today: (that was August 23rd 2012) SLW OCT12 Vertical spread Sold 1 Put of $34 for 1.96 Bought 1 Put of $32 for 1.13 Gross credit received + 0.81 Max Reward: Credit received minus comm Max Risk: - 119 + comm BE: 33.19...

The first thing I recently learned is that my broker by default will exercise all my options that are 0.1 ITM at expiry (even if I would have prefered no to). Luckily I had enough money in my account to purchase the stock that time. Now I have contacted them and they have told me that I can...

SLW still open (expiry is in OCT12). GDXJ Buttefly: I closed the position receiving $10 credit minus comms. Result for the trade negative: -$22.19 (-85% of initial 26.09 invested to open the trade) Conclusion: I will stay away from butterflys until I learn more.