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You can collar the position by selling the call at the next higher strike but that's not going to bring in $200 or anything near it. If the numbers you gave are real and just not a made up example, the stock will be of low volatility and the 12-1/2 call strike will offer pennies. Lastly...

MATHS? LOL. Yup, been there, seen that one before. Sort of deja vu all over again. Arriverderci, tata and tfmm.

You can guess all you want but you have no way of knowing what the intent of the option position buyer/seller was. The puts could be bot long, sold short or they could be coupled with stock or part of a more complex option strategy.

That's a lot of hooey because it's impossible to poduce a stellar record over an extended period of time by using two accounts. An old story comes to mind which may possibl just be urban legend about a wannabe newsletter seller (a charlatan). He starts out with 8,000 mailings and he sends...

You're getting all of the bla bla bla because there is no legitimate track record to display. Instead, you're receiving a bolus of excuses about ways to phony up account performance and fool Uncle Sam.

I'm not exactly sure what our differences are, if any. Yes, puts are expensive if they decay or expire worthless. But if the underlying craters 10 or 15 pts, those puts will look like a pretty clever "waste of money." The point that I was trying to make was that if you bought bullish...

Lighten up on Rush. He's having a tough time with what's going on and needs large doses of Oxycontin to handle his pain :->)

A collar on long stock is equivalent to a bullish vertical spread so if price gaps up, you do alright but just not as well as you would have had you not bot the protective put. It's the gap down that hurts the collar the most but far less than having no protective put at all.

It's a good idea in terms of setting a floor under for catastrophic protection (gaps) but it's not practical at all. Between the B/A slippage and the commissions, you add a lot of drag to your position and have to be more right in your timing with the underlying in order to overcome those add'l...

Mark, Let me state at the outset that I don't know the answer and I'm just speculating at a possible explanation. When they go ITM, puts lose time premium faster than calls do. So theoretically, for a modest but reasonable down move (say a strike), the bearish put spread should...

No. What I've been saying is that your advising someone that buying Mar 5 puts on $8 stock bot at $15 is a good way to "hedge himself out of it" was lousy advice. In return we've gotten a wild goose chase about making $150 on Mar 2.5 puts, self proclaimed clairvoyance about selling the...

That's pretty much the gist of it. Whatever the stock makes, the call loses and whatever the put makes, the stock loses. The conversion locks in the P&L at the time of execution and there's no further potential for gain (or loss) unless you remove a leg and subsequent events go in your...

Another internet stock advisor is born!

prc117f, I'm not trying to bust your chops. Are you aware of what a conversion is? I'm also not playing the hindsight game about what you should have done on the way down. I'm just trying to bring add'l info to your attention for your consideration, should you be in this situation again...

You're like the Pillsbury Dough Boy, subdude. Squeeze here and out pops an answer over there which has nothing to do with the discussion. I get it. Your ideas are good (to you) even if they have nothing to do with what's asked or are even relevant or practical given the OP's situation. LOL...

OK, a recap (g). In your earlier posts, you indicated that: 1) You're holding both covered and naked calls, usually in very volatile stocks. 2) If market moves significantly in either direction overnight, one side or the other gets hit 3) You don't want to change your strategy, you...

I have no clue what you're specific positions are (I'm not asking) but I'm assuming that since you're doing it, it's working for you. Given that you initially asked about catastrophe insurance, such as 9/11 meltdown protection, I suggested a strangle since the further OTM, the lower the cost...

Let's see if I have this right. In your earlier post you suggest buying deep OTM puts (the March 5's) is a good way for the OP to hedge his way out of his large loss on GE. And today you are trying to convince me that making $150 on 50 March 2.5 puts going from $.02 to $.05 accomplished that...

You've turned your long position into a conversion. Just curious... what was your reasoning for doing this?

LOL. If one had the foresight today to know that one could pick up GE at a lower price at a later date then one would never have losses in the first place. Or conversely, one would be short, taking advantage of the drop. But that's not how it works in the real world. You get out of the...