Search results

What strikes and what was yhoo trading at when you purchased your aug and oct calls? What was iv at time of purchase? Why did you choose straight calls rather than vertical debit spreads? How did you decide which strikes to pick? daddy's boy

The call is not naked - it's covered by the stock, hence it's called a "covered call" (aka synthetic short/naked put). Iow, the covered call position acts like a naked short put, which, of course, has large potential risk if the underlying gaps south (e.g. cnc a few days ago or yhoo on 7/19 -...

Hi Eliot I think you've got things a little mixed up. A long call, whether synthetic or not, has limited risk. If you then sell a call against it you end up with a long bull call spread, as momoney has already mentioned - not a strangle, as you were stating. A long strangle is a position made...

momoney wrote: "This long CALL at 72.5 being further in the money (larger deltas) than your short CALL at 75 will lose more when the stock goes down than the short CALL will gain. Far out from expiration the difference can be negligible." That's why the put needs to be rolled down. daddy's boy

useful formula: collar trade risk=stock price-put strike+net premium paid "Look at the long stock + long put by themselves: WLP @$77.44 Buy Jan 07 72.5 PUT for $2.9 If WLP drops to $70, have you or have you not lost money on the position (again ignoring time value etc.)?" In...

Not as steep as trading without knowledge :) daddy's boy

Ok, I've had a look at it. The above trade has a guaranteed profit of $6 for each collar, provided it is held til jan 07. Unfortunately the cost of holding this til jan 07 may be more than the $6 (I think the brokerage is more than that). The good news - the potential max profit is $256 if the...

There are many ways to trade appreciating collars (I'll forget about protective collars for the time). Some observations on the appreciating collar (assumption is long stock plus long atm put plus short otm call, same expiry). 1. as already pointed out by others, the original collar is risk...

Simple. Just btc the july 50 and stc the aug 45 :) and then look for a new trade. You may actually have a profit, depending on your entry debit. Another option is to btc the short and hang on to the long put if you are now bearish on the underlying, but be mindful that time decay and iv are now...

Hi Steve Sorry, I obviously misunderstood your original post. I thought you were debunking all t.a. not just EW. Btw, I'm not looking for help with t.a. :). Best daddy's boy

Hi Steve Funny to see you debunking the t.a. crowd. Maybe you can enlighten us here on what you use to enter your option trades - coin toss? daddy's boy

Try optiongear.com.au - but it costs. You could also sign up with optionsxpress.com and open an account (no funds required) for free and use their software. daddy's boy

I don't buy straight long options with less than 60 days to expiry. I exit my straight long option 30 days prior to expiry because of the negative theta. If I've got a vertical debit spread then that gets closed also 30 days prior to expiry or earlier for the same reason. If I have a vertical...

To youngtradersla: Hey chief I think you should really read the posts more carefully. Steve is the one who said EW is crap. I said the opposite. Not much point trying to help someone like you with your aggressive attitude. daddy's boy

Well, I'm not the one making the trade so I can only guess at how others arrive at their time frame. The original poster wants to place an option trade and for that he must obviously have a price target and time target in mind - how he arrives at these I don't know (I have my own system but am...

Steve46 writes: "alright then, first lose the Elliot Wave crap. That stuff is a net loser. Do not trade using Elliot Wave." Sorry to differ on this point Steve, but you've got to use something to get you into a trade and EW is as good as any other t.a. (it's all pretty subjective anyway and...

I'm sorry, but I can't follow your trade - there are too many contradictions. "I sold 50 July 45 calls and 50 July 35 puts and bought 50 July 60 calls" "I sold the 60 put, bought back the 45 put" There is no 45 put to buy back, you are short the 35 put. Your stock transaction details are...

Here is the vanilla version answer: Use a pricing model to find the bull call spread (rather than a straight call, to avoid volatility issues). Guess by what time your forecast price target is reached and then buy the bcs that is one month past your date (to minimise time decay in case you were...

"And if you took it as an insult, my apologies, such was not the intention, just trying some light hearted humor" Yep, I'm still rolling in the aisles. daddy's boy