Recent content by yonglonglai

Good luck reading books, i studied finance in university and it didn't teach me anything! time decay will kill you if you are trading options and you have no idea what you're doing.... do yourself a favour and find a course to do. here's a couple: <a...

a call options is equivalent to borrowing money then buying the underlying stock/instrument and buying put options (insurance)... This is called the "Put Call Parity" and this is how they create synthetic options etc. you might want to read up on some basic stuff before you throw all...

optionsXpress has a "volatility view" which shows stock's 30day historical volatility and the implied volatility. From my understanding... if the implied volatility is higher than the 30 day historical volatility then write calls/puts. if the 30 day historical volatility is higher than...

exactly the same as a covered call, but backwards... I guess if you have a neutral or downward bias then you'll write covered puts. If you have a neutral or upward bias then you'll write covered calls.. Easy Peasy YLL

I agree with you MTE... the ASX also does have 'expensive' stocks like RIO, NAB, CBA, BHP etc. > $30 and you get get $0.50 to $1.00 spreads on them. I think if you do theoretical options price of spreads its better returns to do 5 x $0.50 spread than 1 x $2.50 given the same, volatility, share...

Its better because the returns are better. Simply US options increment by $2.5 or $5 per strike and Australian options increment by $0.50 per strike. From my personal experience, i find it easier to look for 10c - 15c premium on a 50c spread on the Australian Stock market (20-30% return)...

I write options and as long as you are writing covered options you are pretty safe. Your profits are capped Its just equivalent of renting shares and selling insurance to the share market. Its the greatest thing ever! I haven't done much covered calls and naked puts, I mainly do credit...

If you want to see some examples of credit spreads in action you can check out my website: <a href="http://www.yonglonglai.com/" title="yonglonglai.com">www.yonglonglai.com</a>. I put my trading diary there, you might find it helpful I trade bull put spreads (credit spreads) on the Australian...