Search results

Definitely investigate and for God's sake don't take my word for it. Actually I posed it as a question hoping someone in the know might respond.

Actually, I was making the IRS comment kind of tongue-in-cheek. It's funny, last week I had convinced myself that it was better to use the natural long call and write CCs against it for the very same reasons: you can earn 5% on the unspent portion plus you don't put that money at risk. Then I...

That's if you don't put your position to work. If you can make 15% by selling covered calls then you are ahead. Also, in that case I don't think you can make the argument that you should subtract the interest you missed. If you CAN give me a good reason, then I'll run it by the IRS on next...

Actually the deltas for the long puts are negative. I was thinking you would want smaller delta in case the stock went up. That way the put would lose less value than the stock gained, in case you wanted to sell the put at some point.

What's your strategy for generating income with limited downside risk, without taking speculative directional positions?

It's the largest Saudi oil field, and there is speculation that it has peaked.

I heard the same thing 30 years ago. And 50 years ago it was predicted that we all would have personal flying machines. You left out nanomachines. We are doomed in less than 15 years. That's if global warming doesn't get us first.

Is it true they were leveraged 8:1?

Does anyone know what the typical open interest has been lately for SPY puts? It's 102,619 for the Oct 130 strike. Is that high?

I think MTE is using current interest rates to get the cost of carry, i.e. the money tied up in the stock could have been earning about 5%/year until Jan 08. That would be an argument FOR using the Jan 08 call instead of the synthetic.

TOS doesn't have option levels. If your are approved for option trading you can do anything. But as already stated you probably can't do the trade because of margin requirements. Why not sell a vertical spread to limit the loss?

Can someone tell me how to accomplish the following without using a synthetic call? Buy AAPL @ 76.98 and buy the Jan 08 100 put for 25.80 = total 102.78. The most you can lose is 2.78 between now and Jan 08. Then you start writing covered calls. You can get 2.05 for an Oct 80, or maybe go...

Why in the world would you leave just for making a call?

Didn't the DJIA components change twice since 2000? When were MSFT and INTC added?

OT - just wondering why you stopped doing CCs and what you are doing now (in addition to calendars)? I was just thinking of getting into CCs/naked puts for the income. 1-2% per month would do it for me.

Edit: WITSG? Too late. I sold a 25/22.5 put spread for .90. If I take the stock I'll just sell covered calls on it. Or maybe I'll sell a 25 straddle.

Any good TA'ers out there who can give a read on YHOO? At the bottom yet? I am thinking of selling some Oct 25 puts for $1.

I don't recall Thornbird saying it would never go higher than 1326 again. I'd say 4.5 months is a pretty good call.

That just proves why one should never try to devise option strategies with a hangover.

Why not do the put calendar above and the call calendar below the current price? A couple of quick checks on TOS shows that the cost about the same and the risk graphs appear to be identical, at least for the first expiration. Then if the stock moves up your call are still ITM and if it moves...