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sss12, As you know, options versus stock involves trade offs. The stock will always do better if you get your move (dollar gain not ROI) and far worse if not because it's penny for penny and is 100 delta. Buying an option that expires in two days means that you have to be more right because...

"spit-take" worthy ? Are you sure that you spelled that right ??? :sneaky: :D :)

Yeh, I'm a bit lost here. I don't see a dividend history. Are you assuming that there's a dividend? If there is one, what is it and when is it? A $15 call that is over $11 ITM trades at intrinsic because that's the nature of option pricing. If there is a pending dividend, it would...

LOL. Sometimes, my beard grows faster than a chat response from them.

What you are asking is a bit confusing. Lending you shares occurs only when you short a stock. When you exercise a call, you are buying the stock. If you own a call and it has time premium remaining, you are giving that extrinsic value away by exercising it. It would make sense to exercise...

Though I don't need to post my answers, I will because you have been providing the most thought provoking replies. In hindsight, it would have been easier for everyone to follow had I provided more details - I was trying to keep it simple. I started with VA's 15 years ago and have 1035-ed...

In my experience, orders with two legs tend to get better price improvement fills than anything with more legs.

If the SPX approached the short call strike, one could roll the collar up. How much that cost would depend on how close it was to expiration. I think that it would be minor, compared to locking in another 5% of portfolio gain. That's the trade off. The ET option trader's wet dream is that...

I sorta feel that being outside the portfolio (managed money and a variable annuity), it might be too cute by a half to attempt to sell naked calls on the higher beta equities without access to them. That would make everything cash settled (all options) with the only recourse to liquidate...

ajacobson, "Is the account taxable or qualified?" Qualified? As in LT tax treatment? One is taxable managed money (MM). The other is a variable annuity and the surrender charges have expired. Any portion can be liquidated. "Lot's of choices with options, but what is the nature of the...

I have found that fills are more likely nearer the midpoint with spreads. I surmise that there's more inducement to do because they're garnering two spreads instead of one. That experience may just be because I gravitate toward more liquid options or because there has just always been someone...

I was trying to KISS, myself so I did not indicate in my initial post that this is managed money as well as a variable annuity - so the individual equities are not accessible. Within each, there are multiple positions so yes, I could drill down on the managed money and sell naked calls on...

Beer, As you know from our discussions, the index side of this is new to me. The VIX is currently above my pay grade. I'll look into it but it's not KISS to me. "You can mitigate this by buying a year's protecting in 90 day increments". As I indicated in my initial post, I'm looking at a...

Yes, buying puts is expensive and is a 6-8% annual drag. Not a viable solution in most years. The collar avoids this since the short call funds the long put, Since some of this money is managed as well as in a variable annuity, selling the stock and buying calls isn't viable. Also, where...

Could you expand on the vols idea? If vols expand, rolling up shouldn't be terribly problematic because what you overpay on one side is overpaid to you on the other side, give or take. A ratio spread would do the trick in a crash but not for a drop down to the lower strike of a put ratio...

Your replies indicate that you have a reading comprehension deficiency who doesn't play well with others. That suggests that you should just go off and play with yourself.

OK, it's my turn to step up to the mike and face the ET audience. No tomatoes, eh? I think that I have a fairly decent grasp of utilizing equity options on the retail level but I no experience whatsoever for hedging an appreciated equity portfolio with index options. So I'm looking for some...

Spreads are always wide when deep ITM. But they sometimes they widen at the close and conversely, in the morning, they narrow a bit during the first hour. It also depends on the liquidity.

Hey traderlux. And here I thought that the only one who missed me was my parole officer :->) I don't have any predisposition against the delta hedged vertical other than it's bearish whereas the CC is bullish. Apples and oranges. If he flipped the position and sold an ITM put credit spread...

Nope. You said that: "Getting flat for 31 days does not technically avoid the wash sale." By definition of the wash sale violation, it does. If you book a loss and have taken no substantially identical positions within the 60 window, on the 31st day you can take the position again...