Search results

  1. R

    Anyone do conversions anymore?

    Sure it's AA. Currently @ 9.22 May 09 9 call bid .78 May 09 9 put ask .60 I've just started watching option prices and these quotes seem abnormally tight by comparison to the others I've been watching. Don't know if it's a gem or not. What sort of strategy might you use on something...
  2. R

    Selling Options Naked

    Thanks, I guess I find it disturbing someone would trade options without that basic level of understanding the risks. I'm new to this but I do my homework so when I hear this phrase over and over, I start to think I'm missing something. - Ray
  3. R

    Anyone do conversions anymore?

    This was a long play so shorting wasn't involved. Can you be more specific how a dividend might come into play for such a short span of time? There weren't any special dividends announced. Cost of carry? Is that really much of a concern these days for the average investor? I supose it's...
  4. R

    Anyone do conversions anymore?

    I know this is an old thread but still holds true I expect. Today while looking at a collar play, I found a conversion. Being new to options, I thought I was missing something since it looked too good to be true. This conversion lasted long enough for me to pick up my McMillan book and look...
  5. R

    Selling Options Naked

    I hear "hidden risks and consequences" over and over and still don't understand it. What am I missing that is hidden? The only risk and consequences I see are leverage/margin related when comparing selling naked options to the synthetic equivalent (and perhaps dividend risks). And...
  6. R

    Other forums?

    I don't mean to be disrespectful to Cornerstone, but I'm looking for more conversation about options. Any recommendations for other forums to complement this one? A quick glance at misc.invest.options tells me the signal to noise ratio is pretty low. I'm impressed so far with this groups's...
  7. R

    Chicago stock option clearing firms

    I don't necessarily mean exercising but possibly opening or closing as well. Which I suppose is why I used "execute orders". As far as I know, most brokerage firms use the term "execute/execution" as a term for any trading transactions completed (stocks, options, bonds, mutual funds, etc)...
  8. R

    Chicago stock option clearing firms

    My first post on this board was a question about the risks and characteristics document for options. The reason I did not understand one of the presented risks was that I did not know that market makers/perfessionals could execute orders past the retail customer's deadline. Would using a...
  9. R

    Characteristics and Risks question

    I'm new to options and reading the Characteristics and Risks of Standard Options. I can't seem to wrap my head around the risk listed under chapter X->Principal Risks of Options Positions->Risks of Options Writers->#9 (page 66) which states: Although the rules of the options markets establish...
Back
Top