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heech I deleted my original post because I thought it sounded too argumentative but I appreciate your response.

I sold the Weekly $110 Covered Call. My outlook is that it will go sideways for at least a week. There seems to be resistance at $110. I'll take the weekend to think about it. I need to put in a trailing stop somewhere.

As I thought about it I came to the same conculsion that if you sold the stock the two senarios would be equal. But since they are equal why worry about. If the OP wants to own the stock and sell the call then why do we have to switch to the other situation before we discuss the pros and cons...

I see that the P/L graphs are the same but here’s my analysis. BTW I appreciate you helping me with this: Selling $54-PUT: Pay $54 for the stock Receive $1 dollar for selling the option Result, $53 dollars for a $50 dollar stock Own twice as many shares as before. Selling the $54...

OK. A stock is $50 at expiration: If I sold a $54 PUT, I would have the stock PUT to me at $54. If I sold a $54 CALL, nothing would happen. What did I do wrong? I don't know what the OP thinks about one side protecting the other. I think owning the stock protects the CALL Sold at...

Can we talk about the OP: 1) I have ABC stock bought at $50. 2) Sell Put option with strike price of $46 (pocket $1 premium) 3) Sell Call option with strike price of $54 (pocket $1 premium) Instead of sell 46 put, sell 54 put They are not the same.

Check the OP, the $54 option is a Call not a Put.

When you mentioned that the stock was less volatile it dawned on me that this strategy has a name. It’s called a Short Strangle (covered at that); and like you said it is a neutral strategy. Since it's covered you won't have unlimited upside risk like an uncovered position...

I agree with that. The cap on the upside is one reason I'm learning other strategies and getting out of doing covered calls. Doubling the down side risk well that's bad too. Think Risk "Management" not "Mis-Management". Stick with existing strategies that have already been developed instead...

$110 after hours. So now what: 1. Sell tomorrow if it stays above $110 2. Sell a Covered Call for $115 (Weekly or Monthly) 3. Put in a Trailing Stop order and let it run. 4. Go to the stocks board because everyone on this board couldn't care less.

An investment guru recommended OptionsXpress.com for advanced option trades and Scottrade for beginners. I am in the process of opening an account with OptionsXpress. So far so good. I have called them with questions several times and everyone that I've talk to has been competent. My current...

Trying to apply what I've learned about The Greeks to the FFIV options, I hoped that Theta would lower the PUTS by $0.45 yesterday. It did for a little while in the morning but unfortunately after about 10am Delta and Vega worked against me so I didn't gain anything by waiting any longer. I...

I’m convinced it might go up. :)

What kind of option will sell an ETF/Stock short when exercised? A Long-Short Put or a Short-Long Call? (sarcasm)

This is all part of the learning curve for me. I admit that I probably bought the stock prematurely solely based on good earnings and low debt. Now, however my feelings have changed and I think that the stock could be over-priced and therefore planning an exit strategy. I see that my...

On 3/23/2011 I purchased FFIV Stock at $94.00 and sold the April 16-$95.00-CALL for $4.30. The earnings conference call is scheduled for this Wed April 20, after the market closes. I am considering buying the April 21-$95.00-PUT as insurance in case the stock drops the day after earnings...

If you sell the OTM Calls you get to keep the premium if the option is exercised or not. You could sell the near month OTM Call option every month until it sells. Most of the time (I don't know the %) ITM options won't get executed until the expiration date. So if you sell the December Call...

On Saturday, I looked at some April 16 Credit Spreads and almost sold some PCLN with real money but decided that I should stay conservative a little bit longer while I am still learning. Besides the prices didn’t seem to hold up on Monday so I guess if I was really going to do it I should have...

But that’s a different strategy. About the Delta Graph: If I do the same with the Delta Graph it also changes as expected and on the Monday before expiration the peaks are almost +/- 100 which are what the course said I need to stay between. Once again confirming the need to exit before...

About the Theta Graph. I had the "Plot Lines" setting at (+1@Expiration) which gave me the jagged saw-tooth graph. If I change the "Plot Lines" to (+1@Date) and incremented the "Prob Date" {Red Line} or "Simulation Date"{White Line} between today and expiration, the Theta Graph had a much...