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Yup we all have those. Best way to handle that kind of risk is diversifying amongst many positions so the overall impact isn't so great. I'd be curious to know how the option market was pricing leading up to the announcement and if the options were pricing any of that volatility in.

Nope. I'm not trying to hit home runs. Hind sight is always 20/20 right. At the time of my initial STO 50.50 put, WB was trading at 52.70 and closed the week off at 49.75 and I was put the stock. Buying calls would have lost money. The second week, it closed at 50.16 and selling the 50.50...

Well unless all hell breaks lose this afternoon, the WB trade will come to a close. In summary, here is how it all went down. Week 1: STO 20 WB 50.50 puts for .35 cents. On Friday, at expiration it was obvious I would be put the stock so I BTO 20 WB 50.50 puts expiring in two weeks for 2.10...

Today I sold my long puts to close and got a .86 cent credit for each option. WB was at 50.30 and heading north. Or basically 68% chance of expiring worthless. Pretty good odds. My break even is 50. Three days to expiration. Max profit above 50.50. While I took on more risk, the odds and...

But one could do that whether it's in the index or not in the index. I think you are saying inclusion in the index artificially inflates valuations of its components and even vice versa. I'm saying that isn't necessarily the case. Any spread between the index NAV and the market price of the...

I'm not sure what your point is? Indexes drop companies and add companies all the time. The actual impact of indexes doing so has gotten so small on the valuation of a stock that the opportunity to profit and arbitrage has almost gone away. In addition, there are plenty of examples of stocks...

Sure one could of done that but the result you get has nothing to do with the index itself. But everything to do with the underlying companies. I think people are confused on this thread about how index ETFs work. And how institutional market makers Arbitrage the difference between the price...

In theory we are all buyers but at different prices. Remember buyers and sellers have to agree. There's always a seller for every buyer.

Since my calls expired worthless last week, I opened a new position. Sell to open the WB 50.50 calls that expire Friday for .78 cents. Still long the stock and long the puts that expire Friday. Next option leg will depend on what the stock does.

There is a lot of research out there about indexing with ETFs but one specific issue no one has mentioned on this thread yet is corporate governance. With Index ETFs no one actually holds claim to the shares which means a reduction or lack of activism to hold companies responsible. With mutual...

Good evening beefcake. Not sure how that happened. Weird. I thought I answered your post in a different post I made. I'm currently long the stock and long puts. Currently I am flat. My calls expired worthless. In summary I am long WB at 50.50 and still long puts bought at 2.10. I've...

Yeah. I'm not done with trade yet. Will sell more premium. Ideal scenario will be a sharp move in the stock either direction.

Long stock: 50.50 Long put: 2.10 Investment: 52.60 Less: .35 short put .60 short call Cost basis: 51.65 Market value: 51.26 Stock=50.16 Long put=1.10 40 cent differential. I call it Risk free at this point because my next move or market move makes me $$.

Ok. To bring up to date. My collar turned back into a married put. My short calls expired worthless. Kept full premium. I'm now long shares and long puts that expire next week. My trade is now risk free. Any credits I can collect or appreciation in the stock is all profit.

Here's my trade so far: April 3, 2017: STO 20 WB 50.50 puts at .35 cents stock was at 52.70 April 7, 2017 At expiration: WB closed at $49.75 and I decided to take assignment to have my shares put into my account on Monday. April 7, 2017 at expiration: BTO 20 WB 50.50 puts at $2.10 Monday...

Interesting week for me trading naked puts as I have been doing week after week since the election. I had one position go in the money Wednesday. I decided to hold the position until expiration to see where things ended up. I sold to open the WB 50.50 put strikes for .35 cents and the stock...

Hi Ironchef. Collars can be great initial trades around volatile events such as earnings because of the flexibility to adjust the trades as they evolve. I think I mentioned in another thread, I like to start my trades with a naked put. If the bullish or neutral trend changes and I get put the...

I'm all over the board but I like to stick with stocks I get good fills on and that work until they don't.

Sounds crazy to me to do that but I'm taking the other side of those trades all day long especially 3-5 days till expiration.