Recent content by drosengarden

Jun, Sorry about that - the Strike Price of the calls I sold are $16.00. So in fact the calls were ITM by a little under $0.06/share. From what I'm reading from other posts - the suggestion is that Scottrade is making me "ante up the margin" to cover the options in the event they get...

Jun, Here they are (thanks in advance!) Purchased 2700 Shares @ $16.0589 (average price) Sold 27 Call Contracts @ $1.80 Purchasing power (on a margin account) went from $89,848 to $30,076 (!!!!????) Thanks.

So I have an account with Scottrade. Apparently I cannot do naked calls or naked puts with them. Either way - I purchased some stock and wanted to put my position in with a Short Call. I did just that - however - I'm wondering why the sale of the call took my Buying Power LOWER? I...

I'm assuming that's a slam. Gee - thanks! And if not - would you please be so kind as to enlighten me?

So several of you have enlightened me to naked calls. I guess I understood the concept - just not realizing that's basically what I was creating. But then in this case (naked call) what would be the best risk protection while you're "waiting it out" to either get called or option expire...

So what I think I'm reading is that you sell a call WITHOUT owning the underlying stock? CAN YOU DO THAT? And also, wouldn't it be safer to do what I'm proposing because you know exactly what your cost basis is in the event you get called out of the stock? Oh-and thanks for not beating me...

Admittedly - I am new - so be gentle with me, please. I bruise easily. But here's my latest brain scheme: Find a high volume, volitile stock that has out of the money or at the money call options with premiums that are 9% of the stock price or greater. Buy the stock. Sell the call...

Actually - I just had a response from www.ChoiceTrade.com Here is the response: Dear Sir, Yes we do allow short selling in after hours markets. Please be advised that it is highly risky. Thank You -- Regards, ChoiceTrade Client Services http://www.choicetrade.com...

I am with Scottrade currently. They do not allow a short sell order during after hours and pre market hours. Are there any good, strong, discount brokers that allow short selling during the after and pre market hours? Thanks.

So look at NAT for instance. Are you telling me that I could have purchased NAT on the VERY day it was x-div (that being 8/18/08) and then sold it the same day to qualify for the dividend? (Forget about price consequences for a moment.) This is in direct conflict with what my broker tells...

So are you saying that if I actually outright purchased a stock the day before ex-div - I'm good for dividend - but outright purchase of stock ON ex-dividend - I'm not getting the dividend? ANd then with an option- exercising an option ON ex-dividend day I'm good? Why is there the difference?

Can you give any examples? It would seem even if you go deeper in the money on the calls that you would collect a bid premium that would make it worthwhile to the exercisor to actually exercise. Then you would be OUT money if you got exercised!