Recent content by hankster

We go back to 2005 posts when we discussed several trades. Hope you are doing well.

You're naked after Dec expiration. That's correct and I will be out of the trade by Dec 2011 expiration of Dec 17th, the red line on the graph. I am covered until Dec expiration which is all I care about. It's a bear-delta term-structure trade (short "switch" (back month) and vola)) and I...

A picture is a 1,000 words so here is the trade. If you don't understand the picture, maybe somebody else will take the time to explain it to you, but this will be my last reply to you. Good luck, you will need it in the real trading world.

Here is a real trade, not a paper one. SDS is the S&P 500 short. SDS is 19.63 now. SDS Diagonal Sell the Mar 2012 33 calls and buy the Dec 2011 30 calls for a .75 credit/contract. If SDS closes below 25 or above 33 by Dec expiration on Dec 17th you keep the premium of 75. The...

Used correctly, options are less risky than stocks, futures etc. Used incorrectly you wont be around long trading. Most option traders trade to big and use to much leverage. Leverage is a two edge sword. The key to successful trading is to trade small. Work on the art of the execution...

Thanks and congrats on yours also. I like zero risk and zero cost spreads. I have some others also. PENN, GOOG, VLO, UPL, UTX Yes, I have lots of trades that I lost money on too. What I like about spreads is the risk/reward ratio. I do naked puts also but only one or two at a time and only...

Hi, Here is an INTC trade I am doing. I bought the Jan 27.5 calls for .50 about a week ago hoping to leg into a spread. When INTC moved up I sold half of my Dec 27.5 calls for .55 spread against my remainder Jan 27.5 calls. The other half I sold for .90 today. Now, I have zero cost, a...

Rob, sorry I was not clear. Amazing how statements can be easily construed. I was referring to his using that expression in general. Cramer changes his direction weekly sometimes. VLO is a winner. It split 2:1 about a year ago and made new all-time highs. I believe it will split 2:1 before...

Hi Ice, I think you have been around a while also like myself. I really do respect others trading styles if they work for them. I only hope to help some newbie so that they will be spared some financial misfortune as I have in the past. Thanks for your support. hank :)

All good points. :)

With all due respect, I have been successfully trading leaps since 1998. Actually it is a diagonal calendar spread. I run my own stock and options trading room where I have the privilege of trading with many good traders. I don't mean to prove anything to you or anybody else. I also trade...

Okay, let me use an example most of us on this thread are familiar with and that is APA. Trader A buys 1000 shares of APA at a price of 66 and Trader B buys 10 contracts of Jan 2007 strike 70 at 9.00. Trader A cost is $66,000 cash not using margin and Trader B cost is $9,000 cash...

I have made most of my trading money using Leaps. When I try to reduce my costs by trading shorter term options my trading is inconsistent and my winning ratio is reduced. Leaps have one major advantage over stocks that I have been able to do on several occasions. By using them as surrogate...