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? I do know at least this one thing. That call will be bought back on the cheap with a stock drop and the put will increase dollar for dollar on the way down. PayS

So the $1 I got from the call I give back and buy at perhaps .1 to sell stock at 34 = small loss (.1/35= 0.3%), and I just move on. Put goes ITM, now cost $2 to buy back so - correct me if I am wrong - is a $1 loss (1/35 or 2.86%). If I leveraged it would be 2-3X worse. GA

OK AKS is 35 Jun 35 call is 1 Jun 35 put is 1. Sell it. I know what I'm gonna do with the CC trade to manage risk. But the put trade? Let say I use my SL method. Stock falls Monday morn to 34. Is this my target to buy back naked put. What will naked put price be? What percent loss is...

Ok for ever covered call trade I can log 1-3 naked put trades and look at the risk though the holding period and see what jumps out. May be equal or less risky feel. Easier to manage and less comm and scoop of free money. I'd really like to understand how you guys calc that roi stuff and get...

I haven't yet read all the posts since I'm running behind (as usual), but I think I am being more concerns with stop-loss methodology which plays a large part of my strategy. I'm thinking like this: high-yield type CC stocks will jump (quite a bit) and if this is against me, I don't have the...

We can talk more later...but pull up an IOC or an AKS. Granted 2 week holdings are my (lower limit) norm and we have 1 week till expiry, but I'm seeing OTM put prices presenting a bit of a disparity percent-wise for a 1-weeker vs a 6-weeker. GilL

Ok, here is a better example - mor along the lines of what you are tryig to show. Take IOC stock at 37.3 Jul 40 calls selling for 3.7 Jul 30 puts selling for 1.9 If I am so sure about company price and market at least 2x the 1.9 should be a no-brainer. May not make the 3.7 + (poss)...

...gotcha! Here is a typical example. Let's say my Market Direction call is still "Green Light" (as of yesterday it was changed to "Caution"). Say the market hasn't made a lower low and declines were on lighter volume - or perhaps we are in the early phases of a bull leg like last October...

OC You got me. I do see (some of) the advantages you outlined. In time risk/reward eval will come into align. ment thx Gilbert Errrrr I did it again in previous post naked index 'calls' are eroding eeeerrrrr!

In other words, keep my same strategy parameters, but add in the 2% loss savings, dividends/interest income, commission savings with my base 55%+ average annual return (with a bit of margin use), plus naked index put leverage at tops (and perhaps calls at immediate bottoms) and you still have a...

I am not dumb and I am not a hardhead. I may not even get around to reading Natenberg. What I do know...it seems can still be done - perhaps more efficiently per your (and others') advice. I'll eventually see exactly what you are saying...so no worries, we got time. The market is in...

Therefore this has got to be remembered... MARK HULBERT The bullish best Commentary: Dow's drop doesn't faze the top performers By Mark Hulbert, MarketWatch Last Update: 12:01 AM ET Jun 8, 2007 ANNANDALE, Va. (MarketWatch) -- The number of points that the Dow Jones Industrial...

thx CL So what % of 150k (naked call premium) would be (~) allowed in 1M retail account? Also, ~1/3 less buying power needed for naked put sell equates to equal risk? Yes...it's free money if I am so sure of market and stock and we never fluctuate down (not a real-life scenario)...

Hey I'm not the only one who gets it wrong... U.S. stock futures point to recovery on Wall St. Thu Jun 7, 2007 5:27am ET LONDON, June 7 (Reuters) - U.S. stock futures rose on Thursday, suggesting investors may use this week's sell-off to buy back into equities even with bond yields at...

>>BULLETIN: DOW FALLS 198 POINTS, 400 IN THREE DAYS. Cbs.Marketwatch.com Late in the session I unwound a second position, JADE - halving the exposure I started the day with. Due to my recent cash buildup, I am now only 20.7% vested. I only recently entered 2 positions at C2. Both AKS...

Anyone concur with stats from this recent quip: "...volume was sharply below yesterday's weak levels on both exchanges, which was a silver lining amid the selling." I'm seeing heightened NYSE trade. Perhaps this will be another 'buying' opportunity...either way the distribution days are...

You see once you've traversed with these gains for a year or two, your value may have increased substantially. For example...you took $60,000 and made each trade for 9 months and jumped to $90,000 less commissions. Now being confident, by adding another $50,000 and doing the same exact thing you...

I been looking at the VIX and the VXN (Cboe Volatility Index) as a fear guage. Notice that past market declines coincided with this index - it did so last summer and in late-Feb. I put an alert at 15 and 18 for the vix and vxn, respectively. They are now jumping. That tells me things may...

Good trades to all this morning (it's 9 am LA time) and day. By design the specific approach I developed doesn't require exhaustive monitor-staring. Great for engineers, and various working man professions and jobs. I simply wake up when I do...roll over look at my cell phone at the finance...

OK here's the scenario. Let me know if I get this right - keep in mind I haven't taken time to read much here on ET. Many people come here. Much fewer actually post. There are many forum sites, but this is popular because the many considered 'elite'. So you are one of many considered...