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"Black Wednesday" happened. That's what folks in the mortgage industry call May 27, the day that mortgage rates zoomed upward half a percentage point or more. Like a bouncing rubber ball, rates have gone up and down since then, in ever-smaller increments. Bottom line: Rates are...

Fair enough but I like to get things clear and straight just in case others are reading along; I would hate to think they got bad info. Whether you traded this stock successfully before is meaningless, you could tell us you traded bails of cocaine successfully too and it would be about as...

So you plan is to buy a put prior to the news even though at such time the IV in the options will be at its absolute peak and you'll pay top dollar for that put which would most likely cost the better part if not all or more than the 1.10 you collected on the call? There are always things to...

The NDX post is irrelivant since its nothing more than a post after the markets already moved. I asked if you had a plan or considered what would happen if the FDA rejects SVNT and the stock tanks, being that you never even indicated you knew why the premiums were so high in that stock I...

What’s your plan if the stock opens at 2 or 3 bucks the day after the FDA announcement? The only reason you recieved that high a premium and the reason the IV is so high is becasue of the announcement.

You have not recieved 8.20 for the stock? You own the stock at 7.10 and at best case you will keep 1.10 for the option. Thats best case, you still have risk.

You would have had to go back to Dec or Nov to buy the stock that cheap. Next story?

Are you now ammending your story to read your cost basis as something other than your original post of $7.10?

Steve, The problem lies in that you're profit calculations are grossly misrepresented as has been pointed out by myself and atticus.

When you use the phrase "covered call" it implies you own the stock. yes you get to keep the entire premium but you will lose 2 dollars and change when you are assigned on the 5 strike call which in the real world needs to be accounted for. Obviously the "news" in this case will be a...

The amount of "trading" people do has no effect on the decay of the option. decay is a function of time and other objective variables.

IV is measured in % and no 200% IV is not common. As mentioned by another poster there is a significant news event which will occure during the life of that option. You dont collect 3.20 if the stock stays right here since you'll be assigned on the 5 call which is 2 dollars in change in the...

Since you are a retail customer your offer will always be first in line ahead of the market makers ( computer offers ). Even if they move their offer down all retail customers get priority. In thinly traded options if you dont want to hit the bid then you should not really expect a fill between...

There is your answer!

According to call put parity the SVNT 5 call only has about 85 cents worth of time premium in it so that would be your max profit on the covered call. Not sure where you're gettting your return %'s from. SVNT IV is also over 200% so there is obviously a significant event pending. You now have...

I take it you're joking since you dont get to trade vs. retail paper

"I can see where this discussion his heading, so I'm done with it. Putz Master" "Lets consider the discussion over. Putz Master" Guess not huh?

None of your subjective measures has any influence on the calculation of probability. Thats what I have said all along. I dont care about how your subjective opinions influence your selection of strikes in your simple credit spreads.

LOL and you wont because those are subjective opinions Every single thread PM starts or posts on ends the same way. His irrational logic combined with him denying that irrationality. Every single thread he posts on in every single message forum he infests ends the same exact way.

You clearly say here that you believe subjective items should be part of probability calculations. "In terms of evaluating "probability of profit", I think one should also consider the downside tech support CB has demonstrated in the $35 area,... per the 1 year chart below. You need to go...