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Everyone makes money when they sell covered calls. It's free and it's yours to keep if you don't close the call before expiration. OTOH, you could take a beating on the long stock that you own - as much as a 100% loss - but that's only a paper loss. :D

Conversely, they could lose 56% to 900%. As someone said previously, they're great when your winning.

Most stocks drop when the market falls so I think you're chasing unicorns. Not that it matters but I still have no clue what you're after. IMHO, if you're looking to hedge yourself in a pairs situation, I'd look for high not low correlation since they're going up or going down together...

Missed that... LOLOL

It's not MY strategy. I just explained what would happen if you executed the position which you wrote about on page 1. When a stock is this low and has lost nearly 1/2 its value, there's nothing you can do to repair it because the next strike up trades for cents unless you go out 6-12...

Not really clear what you're seeking. Are you looking for pairs of stocks that correlate or is this a single stock strategy?

If you sell 200 shares, buy 2 Dec 2-1/2 puts and sell 1 Jul 2-1/2 puts, you protect against add'l downside loss for 2 weeks and have little to no upside gain until somewhere north of $3. It's dead money. Are you comfortable with that? A beter question would be, what are you trying to...

A pro trader would have done something long before the UL enarly halved in value :)

There are multiple ways to achieve a profit graph. Neither your explanation or the BWB explains why the right side of the inverted V isn't a straight line.

Yep, looks like a broken wing. The distortion in the graph implies either a secondary option position or a charting program that needs a better programmer.

Here's the easy way out. Provide a number of links which AFAIK, is going above and beyond. A brief sidebar would explain that web sites provide explanations in various degree of depth and if the reader wants more complexity than that, he can Google away. Rather than sifting for the best...

If Investopedia provides explanations acceptable to you then you're done. If not, it's back to the options texts. :)

Not everyone knows everything about everything. Providing a link to a "definitions" page isn't talking down to someone. For the very "few" who don't understand every option term, it's a convenience, saving them the time of having to Google something and then having to sift through multiple...

I think that it's a well written article describing your utilization of long strangles for earnings releases. I think that most posters here understand the lingo but if you're going to write one or more articles on this topic or other option topics, it might be helpful to some to have a link...

Wow, I'd open an account for trades like that :)

Warrants are like long term options - both enable you to buy the stock at a certain time and price. The main diffference is that the warrant is issued by the company who is the other party and it provides the shares if you exericse the warrant.

I don't know anything about it but another tax prep program that people have posted about is GAINSKEEPER. As per posters, some brokers provide it for free.

Actually, not exactly. SInce he's short 8 of the lower strike, he has 24 pts to make up with a large rise (8x the diff in strikes). Yes, he has 3 more of the higher strike but with its lower delta, it won't overcome the loss until the high 130's, maybe low 140's.

First issue is margin if you don't have the cash to cover the assignment loss. If not, sell some of the long calls. If so... Early exercise is a good thing because you maximiize the gain on the short leg before expiration. You could sell more premium or short shares. For example, at 130...

In a brief serious vein, Tom DeMark ceated some technical indicators that involve consecutive up (or down) days. A buy signal for the TD Setup is where you have 9 consecutive bars where the close is less than the close 4 bars ago. A buy signal for the TD Countdown is where you have...