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It was fib levels down to the 100% level (or 0%, depending on how you look at it). Below that I had to change things up a little bit but the basic concept is still the same. I adjust the target profit when price goes down certain amounts.

Oh, my bad. Usually when people ask about exit plans with average down strategies it's because they're worried about blowing their account. There is no exit plan in the sense of "take a hard loss at a certain point." Dividends and hedges soften the blow, and I don't really have any issue...

The quick answer is I'm not using margin so I was never in danger of blowing my account or anything. 10/17: SPY -$18,867.00 hedge -$1,241.20 Net for this trade -$20,108.20 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend)...

When dealing with women: - pay attention to what they do, not what they say This applies to dealings with men, too. But it's usually brought up in a meeting women/dating/relationship context.

SPY -$5,529.00 hedge -$1,762.60 Net for this trade -$7,291.60 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend) $5,221.55 (realized) ------------------------ $6,776.89 In the positive.

10/13 SPY -$17,271.00 hedge -$1,267.60 Net for this trade: -$18,538.60 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend) $5,221.55 (realized) ------------------------ -$4,470.11

You mean you have the choice of: 1) Exercising them (and getting shares of stock) or 2) Leaving them behind (and getting nothing) ??? Sounds like a no brainer. I'm not sure how hard it would be to sell private shares though. "Finding a buyer" sounds hard. edit - whoa...

Ohhh. For some reason I thought when you wrote an option, a new option was being created. That's how they made it sound. Like say there is 500 open volume of XYZ options. You decide to write a covered call. Now there are 501 open volume of XYZ options. I guess I thought that...

10/12: SPY -$15,903.00 hedge -$1,333.60 Net for this trade: -$17,236.60 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend) $5,221.55 (realized) ------------------------ -$3,168.11

What happens if: - You own a stock - You sell a covered call against it - a week or so before expiration, the call becomes ITM, but is not assigned - 2 days before expiration, the stock goes back down and the call is no longer ITM - at expiration the stock is still trading below...

How does number of posts directly relate to options knowledge? You have more posts per day than the OP, shouldn't you be super smart? Yet you contribute nothing to this thread.

10/11: SPY -$21,888.00 hedge -$1,089.40 Net for this trade: -$22,977.40 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend) $5,221.55 (realized) ------------------------ -$8,908.91

So Took2Summit says the proceeds from selling the call are not added to your account immediately upon selling it. Atticus says this is incorrect (therefore implying that your account is credited immediately). Seems like this should be pretty easy to empirically prove. I have no idea...

If the option expires when the stock is at $42, he will show a loss on the option but still a gain on the stock (since his average cost was $36.54). In that case, will the paper loss on the option disappear and be replaced with his $58 premium? So if the stock is $42, his profit will be...

Instead of posting that, you could've posted something helpful and corrected him because it seems correct to me, too, based on what I have read about how covered calls work. But I don't know anything about options, either.

This thread is also interesting to me as I am trying to learn more about covered calls to possibly use some to unload potentially large positions of SPY in the future. Does an option ever get assigned before expiry if it gets deep in the money?

10/10: SPY -$22,572.00 hedge -$1,049.80 Net for this trade: -$23,621.80 (unrealized) $1,223.60 (realized) $2,931.69 (realized) $1,129.72 (dividend) $3,561.93 (estimated dividend) $5,221.55 (realized) ------------------------ -$9,553.31

As long as you don't do more than 3 round trips in a 5 business day period you can do it with under $25k.

^ thanks. I think the only option strategies that would suit my style would be covered calls and cash secured puts. Getting paid to buy shares that I'm going to buy anyway sounds like a pretty good deal.

Which brokers? What market? Are you talking Forex?