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The question is, if indeed the movements go the way you think (you cannot be sure), what you should do in each case when the stock moves down and up and back in the interval? to make the most profit - given the limitation there are build into the choosen position.

Stock movements to react to. Let’s say that you are trading options in a stock where historical volatility is high and the implied volatility might also be high. At some point you have a position like this: At the time you make the position the stock price is 320: Marts 2010 20 Long...

Thanks. Options very deep in the money more or less acts as the real stock when it comes to price movement. To this roll could be added sell of calls even higher up than the new strike - if any hedge is needed.

Thank you for the information. What I am trying to understand is when it is optimal to make the move. There can be many reasons why it is not a good idea but if for some reason makes sense, the move should be done, and there also should be optimal date to exp and price for the underlying stock...

Just a quick questing regarding a simple CALL position and what to look for in Greeks if you want to roll the position slightly up and forward: Position: 90 contracts long CALL XYZ Strike 290 with exp in June 2010. Initial option price was 48. Stock price currently trading around 340 and...

The position is in some books called a calendar call-on-call diagonal spread, but never minds that. I agree we cannot use magic. My problem is that I sold the calls to late – I have had the long position for some time before, and the stock price moved. The best case now seems to be to wait...

This is a Danish option. Current position: long 30 CALL Strike 280 exp July 2010 - debit 69 short 30 CALL Strike 290 exp marts 2010 - credit 34 I sold the CALLs when the underlying stock price was near 310 and the stock has now gone up to 360. There are no on-line prices for the...

You are correct. Im from and trading in Denmark and I did not convert the strike and current stock price into $ - only the price paid. The currency ratio is aprox. 1:5

In short my questing: is there any way/strategy around gaining if the stock goes up after you have written calls with other call’s as security – given that the calls for security as lower strikes and expiration after the written. The only ones I can see (and they are not that good)...

Case: I have 100 call contracts (100 stocks) at strike 290 with expiration June 2010. I paid 10$ for each contract. At the time the stock price was 320 – so I was in the money. After some time I sold 100 call options at strike 330 with expiration Marts 2010 – I got 3$ for each contract. I...