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"There is no point really in beating a dead horse." This is one of the most informative threads I’ve been involved with and if you have the time I would like to continue it. I’ve actively traded options for 5 years but in all honesty usually just trade them for leverage on momentum plays...

Well coach I gave you wrong information on my trade. I didn't buy the stock at $40.20, that was a different trade. I already owned NOK stock that I had bought shares in Oct. and Nov for an average cost of $38.01.So on Nov 8 Nokia stock opened at $40.75, goes up to $40.80 then reverses. I...

Ok, on Nov 8 Nokia stock opened at $40.75, I bought shortly after at $40. 20 Then didn't like what I saw and at 10:48.08 I sold a jan 09 LEAP sp 30 for $13. The stock dropped to $38.61 before closing at $40.08. I never said you should sell the call the instant you buy the stock, but it is a...

Ok, here's a better example. Bought Nokia near $40 + and then it started to drop so I sold a Jan 09 30 sp Leap for $13. I'll get $43 if it gets called away and I am protected down to $27. Some people would have sold a far month ATM call, but then when it was down at $29 the premium received...

If you are trading a fairly stable stock like ebay you are correct. I said in my original statement if the IV was high enough it can be profitable. When I was trading Tasr some years ago and IV was was 8.+% on the calls and liquidity was good, 10% return was possible. Last year I bought SGMO at...

Well I guess that depends on what you think is a good return on your $. If your exit strategy was to sell your stock when it hit $30 and you can sell an ITM call that would give you an additional 10% return, I don't mind tieing up my $ at a 10% return. I've got cash sitting in accounts that pay...

Well this post got a long way from my initial comment that it was the last time I casually short some near to expiration options with little premium against my longs just to reduce my cost basis. Must admit, it led to some of the more intelligent comments and advise I've seem posted on ET.

"I am sorry but I was trying to help you. Your story has been incomplete and shifting. Now I understand that you were long a 48 put (which should be done if your think Qs heading down, but you also said that you were thinking Qs going up as you think it happens in Jan which is strange). Why...

"You convert your long puts to a diagonal or a calendar because your outlook becomes less directional and you want to hedge the position. If the market stays in a certain range, you profit. If not, you lose." Bingo. Someone who understands a simple trade instead of going off on tangents. I...

"You would have lost! Why, because your overall delta is negative when you have a time spread with a strike below current price. I am now understanding that you really need to understand options better. " You either don't understand what I wrote or don't have a clue. I bought Feb 48 puts...

Ok here is the deal, QQQQ's at $48+ and I go long Feb puts, Jan expiration coming up. In the 6 years I've been trading options, Jan has been a good month for going long. So I think I am safe shorting puts that are $1.50 otm. against my existing long Feb puts that have been decreasing in value...

Next week is when the big follow thru days should occur for this to have any teeth. I don't usually use charts, but that is a classic head and shoulders on the s&p with alot of room to the downside.

You're no different than 98% of the rest of us. I should sell a newsletter when I put on a trade so my subscribers can do the opposite. I only know one successful trader, and he does just the opposite of what most on this board would recommend. He never takes a small loss and averages down. But...

"You need to understand options may better my friend that you seem to currently understanding." Either you didn't understand what I wrote or you don't understand that if there is a big gap down and your short otm's are now itm they are increasing in value at the same rate as your longs. As I...

Well I did it again and for sure it is the last time. Expected a drop in Feb so loaded up on QQQQ atm 48 sp puts at $180 . Decided to reduce my cost a little and sold the jan otm 47 puts against them for $30 shortly before expiration. Aghhhh. On a big drop like this the otm's went itm pretty...

There always seem to be a lot of people on this board who throw out opinions as if it was truth. Selling naked calls carries a risk that is measurable. Pick your stock, go back and look at the price of the stock on every expiration Friday for the last 10 years, see how much it usually changes...

Funny thing about reading this board, everyone goes on and on about risk management, having a system usually based on back tested strategies and obscure TA analysis etc... . Yet it seems most traders still fail. I only have one friend who trades. He reads the news, buys stock and naked calls...

There is an aspect of writing covered calls that many traders overlook. When a stock is at the point when you are thinking of taking profits, writing a deep ITM call can bring you extra $ with little risk. The IV has to be high enough so that the premium pays a good return for tieing up your...

I call it covering my behind on a bad trade. But at least by collecting $300 premium on each call I had an $8 swing to the upside before I would have to buy the stock to break even. By buying the stock when it hit the strike price, I could still use the $300 premium to buy puts and set up a...

I thought selling naked calls with high IV was a good thing once so sold a bunch of calls on tasr when it was a high flyer but on a dive . I sold calls that were $5 OTM, and to make it worth my while on the premium I sold calls 6 mos out. Not a good Idea. But instead of taking a loss when it...