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PAYX option volatily observation
Paychex announced earnings last night and disappointed. The stock was down and crashed -$1.91 (-6% & change) My limit sell on March 20 calls last night was at $11.00. These calls closed today at $9.30. Delta was about 1. So change appears to have been all direction and no volatility... -
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impossible to make monthly income..with options spreads without BIG money!
Capital preservation can manifest itself in many ways..like simply reducing a portfolio's beta, or staying defensive, or having a consevative asset allocation that may not outperform during powerful bull markets but will not sent your portfolio down the drain during the bear market. Portfolio... -
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impossible to make monthly income..with options spreads without BIG money!
An easy way to make a small fortune in stocks or options is start with a large fortune and let greed and impatience take over. I have clients that have become very wealthy by saving/investing a few dollars per week over a long time, 30-40 years and let compounding do the work. Time is your... -
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Seems options is becoming a big thing, now on TV :)
I guess I do not understand why low risk strategies like collars would not adhere to the prudent man rule. It would seem that using such vehicles would exemplify the prudent man rule, especially since sometimes clients insist on being overweight in a position (Gannett comes to mind here). Yet... -
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Seems options is becoming a big thing, now on TV :)
Most people think its 1. a too good to be true scam 2. too risky 3. too hard to comprehend (this stuff isn't easy) most financial planners don't offer it because its too much work getting investors to understand it and many don't understand it themselves. It has not been touted by the... -
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Protective Puts vs. The Stop Loss
Take a good trading stock, like POT last year, or SKF last fall. When the stock reached resistance, I bought puts a little under support (100 day EMA) as cheap disaster insurance, I agree with the original poster on the shakeouts. I bought 3-6 month puts because time decay was not too excessive... -
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Do most long call holders exercise early to get the dividend?
I have been wondering that myself. Thanks -
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Protecting stock gains by buying calls
Thanks for the comments. First, taxes are not a consideration as this is within an IRA, in addition, because it is in an IRA, the spreads are out. Xflat, agree with your comments on collars as a possible strategy, but I would rather redeploy the capital into defensive sectors at this stage of... -
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Protecting stock gains by buying calls
My intel trade has been very good to me and I want to take some money off the table at about right now. I don't want to monkey with puts, so I am considering the following: Sell my intel buy a SOTM (slightly out of the money) call expiry in Jan or so in case INTC goes to $90. Is this a... -
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options w/ higher deep-out-of-the-money premium
Nice, thanks for posting that link. I am actually thinking about buying some 6-9 month puts here as a hedge. -
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DEMO Trading 'Uncovered"...the 'fleecing' of a 'wanna be' trader?
You can have all the fun and it won't cost you anything:D -
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Whether an options writer or buyer has better edge? Why?
Adjustments. As a seller you may be able to adjust a position. As a buyer, How can you adjust/roll?? -
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Previous ET Married Position Recommended
I am sorry, I forgot to post the link http://www.cboe.com/micro/CLL/introduction.aspx The information is in tabular form and you can see it if you scroll about half way down the page. It is the 95-110 index. Seeing the four indexes side by side is enlightening. -
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Previous ET Married Position Recommended
If you go to the CBOE micro site you can find a table of the annual percentage changes of the CBOE 95-100 collar index, the SP buy Write index, S&P 500 index, S&P 2% OTM buy write index, and the CBOE put write index. If you add up the years here's how they fared: S&P total return (1987-2007)... -
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Pros and Cons for using options as a direct substitute for the underlying?
I have read about in the money leaps being used as surrogate have read it is a close substitute if the premium is all intrinsic value. Here is the article I am referring to. I am doing this with EEM in a virtual account and have had some good success... -
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Will this naive option strategy work in practice?
Actually, the question is quite logical. The answer is we cant do it but the guberment can. :confused: :D -
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Covered call: best to sell options with 1 or 3 months until expiration?
I sell 3 month calls when I want more downside protection. I also roll into 3 month calls when my front month goes into the money and I do not want to be assigned, and do not want to take a "loss" on the front month. -
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Selling covered call on ETFs
I began working with options about a year ago to redice risk in my stock portfolio and generate some income. My strategies have been selling CCs, collars, and selling puts. Agree wholeheartedly with Spindr (my results validate it) income from CC's become meaningless fast when the stock drops...