Search results

if you continue to buy more and more options and continue to pay premium, you are going to get hurt. IMHO, once you buy options, your major objective is to pull out cash and reduce risk. Mark

Tom, 1) Yes you can substitute stock. When you know your going to be assigned and you do NOT want to repurchase the options written, takes these steps (but make sure your broker can do what you need) a) Buy stock for one day settlement. That may cost a small extra fee per share. b)...

Yes. Not every stock (or index) can be traded with your desired strategy. OTM - you did not say how ar OTM, but the bid was zero, so it must be pretty far - options are not want everyone wants to trade. In that scenario, you give them MMs a good price, or they won't make the trade...

Yes. Only choose stocks you want to own. Never write covered calls because the premium looks attractive. I mean: NEVER. You will wind up owning stock often enough that it's mandatory that you have only stocks you want to own. If you do otherwise, then you are just gambling. Mark...

Walt, Ditto again. You should welcome being assigned. Not fear it. One problem for people who adopt your strategy is not recognizing whether thereis any profit potential in the trade. I'm mentioning this just to be certain you understand the situation: When expiration arrives...

You have secured nothing until the position is closed. Currently, the trade is profitable, but is still alive and nothing has been secured. Mark

i don't understand why you posted this. But you have one glaring error, which tells me you are in no position to be offering warnings to anyone. Delta neutral strategies don't have to be negative gamma positions. They do not necessarily involve options 'written.' Positive gamma...

Mark http://www.expiringmonthly.com/

You are describing my book. Thanks Mark Wolfinger (better to give my name than the book title)

OEX is American style. That's the only one among the major broad based indexes Mark <a href="http://www.expiringmonthly.com/subscribe/">Expiring Monthly</a>

Whenever you believe the stock is not headed lower Whenever you are willing to accept the option premium and a limit on maximum profit. There is no single 'best' time. Mark

Call customer service. Immediately (ok in the morning) Mark

I don't know QT, but try the obvious: IBM Apr 125C Mark

What you are describing is not the way it works. Are you using COMBO to select he options in the spread? Do you see a bid/ask for the spread? It should be very wide. If you enter your limit price at something worse than midpoints, you will get filled. It may need a dime worse, or...

Mark

I told you long ago. Never use Yahoo for options data. i see that the same advice has been repeated here. Mark

Why is that 'obvious.' In fact, it's rather stupid. Mark

There is no MARGIN required, but you must pay the debit in cash. That cash reduce margin availability, so you gain nothing.

I enter only CLOSING orders before the opening bell. Anything else increases risk. Mark

There is no comparison. Future volatility will (after the fact) determine what the option was worth. IV is the the current estimate of future volatility. When trading, you can bet on whether the current estimate is high or low. But historical volatility is seldom important...