Search results

Ok here's my suggestion. I was in the same boat when I started and the mentor I had started me trading options on the QQQQ's, the ETF that tracks the Naz 100. It is very liquid with a small spread on the bid/ask. On days when it appeared the Naz was going up I bought naked calls, and on the...

"A CC is a BULLISH position: it's long delta, it makes a profit when the stock moves higher and it loses money if the stock moves lower (by more than the premium collected). That's bullish." I find this statement interesting. While I agree that the delta on the short call is going to be less...

"The general problem with promoting the sale of naked strangles in a book that may be read by inexperienced investors/traders is that they don't get the concept of trading just a few contracts when risk is large." Sorry, I didn't specify these were long strangle positions and the initial post...

"Strangles are for risk takers and no one else. And the authors you quote should know better than to suggest this disastrous strategy to the masses." Although my trading of strangles has been minimal, and I don't know if this will hold true now with the market the way it is, over the last...

This seems to be getting off kilter. I do not write covered calls as a trading strategy. I bought COP as an investment at $49.50 because I thought it was a good buy. I sold an ATM LEAP because the high IV/ premium made it worth my while to risk having the stock called away at $50. And since I...

"2) A CC is a BULLISH position: it's long delta, it makes a profit when the stock moves higher and it loses money if the stock moves lower (by more than the premium collected). That's bullish. If tyou write a naked put when you 'feel' that way, you should write a CC when you 'feel' that way...

"And if the stock is below 50, the stock is put to you and you own the shares - just as if you held a CC position." No. I do not have options exercised against me at expiration. When I trade options it is strictly a cash trade, I settle everything at expiration if I'm still in the position...

"Last but not least your COP 2010 50 leap example of the put vs the call is way off.It has nothing to do with your trading mentality.It has to do with most traders inability to admit they are WRONG and take a loss.Instaed the tendency is to take a shot by realising the gain on the short call and...

Well I have shorted puts on ETF's and stocks for a number of years with IB , but am currently using MB trading and they don't allow selling of options except as a covered call so that is effecting my positioning on this particular trade. Although the math might be the same, my thought...

"P.S. I though we all learned that analysts were worse than worthless during the 1990s bubble." Yea that is true. But if the 1yr est. was $120 I might be more reluctant to limit myself to a 20% return.

"Yet you say you wouldnt be naked short calls or puts trying to sell IV.As far as I can see,thats exactly what you did.What am I missing??" Good question. I don't know, maybe I'm missing something since I probably could have got more premium for the put than the call, which usually isn't the...

Nothing to apologize about.

Hey I'm feeling famous, Mark quoted me on his website : http://blog.mdwoptions.com/options_for_rookies/ The quote is a little misleading though as I personally don't enter trades using a fixed amount per trade as my trades have different timelines and reasons for entering. And if I am...

"I am glad you said that as I have said the very same thing over and over and every time the stock tanks to the level I thought I wanted to own it at,I do NOT want to own it!!" I don't think I was clear on what I said. I would not be a buyer of puts at my BE point of $39.50 unless something...

"You are making the same mistake Yucca does....If its starts toppling,its over....You have a losing position that you are adjusting way too late" Not really because in this case I have no problem getting stuck with COP at $39.50, I like the compay. I wouldn't be buying puts to offset this...

"What is your conclusion from what you wrote above?" I've had this discussion on ET with traders who are much more knowledgeable than I am and who think I am wrong. But in my simpleton view, if I know I can win 4 out of 5 times by selling options, and I have the resources to offset any short...

"If you are a directional trader who employs stops,than the same $ stop should be employed with option positions." I don't know if I agree with this, but then again I'm a piker taking small positions. If you buy options 2-3 months out, even if the general trend goes the way you anticipate you...

When I started this post I was just pointing out that in reviewing MY trading history and buying options as a way to make money on an anticipated move, most of the positions that went the way I thought they would, went that way in a BIG way. Ex. MSO from $8 to $40, GSF from $50-$90's, drop in...

Since this is a thread for conservative option trading strategy, I decided to park some money this year as I think we are going to be up and down for awhile. So I've gone back to the basics and am buying COP and selling 2010 ATM LEAPS on it and settle for a 20% return. There is a risk COP could...

"Capital preservation is paramount. Complacence is a killer." Tell me about it. After years of scalping on the Q's and OEX, last April I decided to become a more conservative investor and hold my positions for the long term. The only options I bought were bull LEAP spreads. Talk about...