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Or for that matter, May, etc.? Stock up to $24.30 after hours on buyout by TXN! Ouch! Assuming it holds, some $5 options will go to about $930 (Apr 15s). One more quick note - there was low volume on these, but these is still OI in the 1000s for 15s, 16s and 17s, so someone is short...

Ok, Big D, here is the deal (I know I wasn't supposed to come back here, etc.) - I think I know what you are saying, but there is still something you seem to be missing. Lets looks at 2 different strategies, each one using calls and puts. The first is the simple buy-write or sell put. I...

Ok, one more comment - you act like an expert on put-call parity, and then you claim it is impossible to sell DITM puts that are listed with bids and asks? Then you say option people overlook stuff? It is VERY BASIC that you CAN sell DITM puts even if the volume and OI is low - don't come...

"And no, you can't replicate it with just puts unless you happen to be psychic and know which month to sell ahead of time." Yeah, and you can't replicate it with a covered call either - you just bought the stock and it went up $6 and then sold a CC - that has nothing to do with CCs being...

One more point about this example where the stock happened to move upward: You state "here's an example covered call trade from that period...." Then, "Net result: $6 of stock profit, $0.47 of dividends, $0.50 of premium, position flat." So, basically it was really a stock trade that...

Dude, like FreeThinker mentions, sell the 36 strike put - you would have received for example $700 up front - the stock moves to 36 and it expires worthless and you get the $700 - just like the CC writer. It's really not that hard and nothing to laugh at! :) JJacksET4

Of course you are right, but I was just trying to make it clear that going long for say $5,000, you might risk $5,000, but going short, you could lose more then that for example. Of course, this kind of scenario can also be true shorting a call or put as opposed to going long the call or put...

Well, there is never really "Unlimited" risk to a downside move - of course, in theory the risk could be basically 100% - for example if SPY went to $0 - which would be really bad for the market anyway! Truly unlimited losses are usually reserved for shorting stocks and/or calls that aren't...

You're talking about selling a call, right? So, if SPY falls to say $80, you paid almost $12,000 for a position now worth $8,000. So, yes, you keep the shares, but they are worth a lot less then your total expense was. Of course, it may not be a realized loss until you actually sold the...

Without looking at your example in too much detail, it basically looks right - selling the 120 brings $1150 and you lock in a max gain of $50, with large possible loss if SPY falls below $120. Just to point it out, I quickly knew the 85 strike example was wrong, because if you look at the 85...

I love how they make such specific number predictions for such a large move ..."could plunge as much as 6,000 points"... basically implies that it couldn't possibly fall (plunge for headline wording!) 7,000 points! JJacksET4

The "citizens of the US who want change and growth" supposedly voted for their Messiah in 2008, not a right-wing religious guy as you seem to think. They just got stuck with the change in forms of unemployment checks, etc.

Yeah, those are real hard hobbies to pursue in the U.S.

Oops, looks like maybe it is just a Yahoo mistake. Their historical prices shows yesterdays close at 56.70 and todays at 56.84, so not up $1.13 like it shows - just 14 cents. JJacksET4

1a2b3cppp, I don't know the reason exactly as I haven't looked at it in detail yet, but I think QQQ follows 100 Nasdaq stocks - and AAPL is a large, large weighing on it. AAPL was up pretty good today. I am guessing alot of the main components of QQQ were good today and there must have...

He's obviously never met Oblahblah.

:confused: What will you ever sell your options for though - U.S. dollars, right? So theoretically if Silver goes to $100 and you make a small fortune, it will be in worthless U.S. dollars. Not trying to criticize, just wondering why you would then want to make money in worthless dollars...

Oblahblah is keeping his Nobel Peace Prize! http://www.politico.com/politico44/perm/0311/a_noble_defense_dccb5644-d067-404b-8580-b939a4056f06.html The comments appear to be almost 100% against him, as would be expected. My main comment would be that with all due respect, I really don't...

1a2b3cppp, Options are really quite complex and are not something you can just jump into with a long term view but not being aware of all your options (no pun intended) at the time. You mention that you often use ETFs and average down - in theory a person could do similar with options even...

Many times lawsuits are involved lol http://seekingalpha.com/article/259621-get-ready-for-etf-changes-qqqq-becomes-qqq-again JJacksET4