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yes that's what i plan to do, use the credit from the put spread to buy the 2010 5 calls instead of the stock at about 30% of the underlying price to limit some additional risk. I think tomorrow will be anotehr down day for etfc as it's the last day of the year, many will close their losing...

i read it wrong. sell naked puts instead of buying the stock and writing covered calls against it sell naked puts instead of buying the stock and writing covered calls against it Anyway i havent made the trade yet, waiting for the technical to become a bit more clearer.

but he's saying dont buy the underlying instead sell naked puts and write(sell) covered call. huh? :confused:

About 23%, made good money on china stocks and writing otm calls/puts. but gave some back on buying naked ditm calls on mer/leh/bac before subprime exploded. O well, win some lose some and learned a few valuable lessons.

You are missing the point, assignment is a risk not something i WANT to buy. Chance of a july non-dividend stock early assignment is not high. I would use $1.2 credit to buy the stock at $3.5. As for the stock price going down from 3.8 to 3.5 on friday, that's not relevant for the...

wow i am surprised to hear people in this day and age actually do that, on elite traders no less :eek: What do you do with the gold coins? and how do you sell it back, goto a pawn shop? not making fun, just curious.

if i read this correctly, are some of you seriously saying buy some physical gold and put it in a box? :eek:

noone can tell you that without looking at the specific stock / option prices. Here's how i usually do it, am still learning as well. 1) if i want to unload the underlying as well, i will sell covered calls with strike closest to ATM 2) if on the fence on the underlying, i sell close to...

that's a good point i need to ask my broker what will happen when early assignment occurs, will they be smart enough to offer me the choice to buy the stock at 5 then immediately sell it at market value and paying only the difference. Or will it be a manual process of me having enough cash to...

ETFC (etrade) Analysis: Risk/nagatives: - real risk of bankruptcy - complex balance sheet making it difficult to find true writedown numbers linked to mortgage melt - technical is par at best, with ma10 still below ema20,30 just levelling off slightly and cmf > -0.2 but looks like it...

optioncoach, i dont mind the harsh advise, actually it's refreshing. But please read my replies in this thread from beginning, i certainly made my share of mistakes on this trade but wasnt just dropping 40k cluelessly on a whim. I started this thread looking for more of technical analysis...

are you kidding? not even close. I be happy just to have 1/10th of the knowledge and insight Atticus does.

Yeah i agree. To be honest i only added the long calls to reduce the margin requirement. By using a condor instead of a short strangle, max profit went down from ~$800 to ~500 but my margin requirement went from 30k to 8k. Disregarding margin requirement for a min, i dont think the extra...

This is better than some books i read :) still going through it but some questions. Assumption: 1)Writing OTM calls/puts (range example: SPX price:1476, call 1550, put 1395) 2)Writing only with 30 days or less till expiration 3)Writing SPX only Question: 1) What's the point of...

what about a kiwi trader? :D j/k! thanks for the explanation!

Just curious, when you guys discuss various topics of trading in this section, do you mean day trading only? I been trading for 5+ years now but on monthly timeframe and got into options this year, again trading on monthly. Is there a specifc name for these type of traders? Also in most...

Lets compare notes, you go first :D LEH and ETFC thanks

thanks, i am going to unload half and short the 70 call on the other half and wait a little longer. bt116, it wasnt on a "hunch". Leh had very strong resistence around 70 for a long time, so when it dipped to that level again around july, was so sure it's going to bounce back i bought naked...

Well the man is brilliant, atticus is like mozart in options, usually i was able to grasp what he is saying after rereading it a couple times and type it out on notepad, but this one just cant understand no matter how hard i try. :confused: The OP sold covered call at 115 strike at $4.24...

This was one of my first option trades bought during the start of the subprime mess. Due to my lack of experience on options at the time and pure stupidity (averaging down at the wrong time, on business trip didnt monitor the market etc..), i am still holding the bag on this naked long call...