Search results

Is there not an oppurtunity to profit on the put if NITE drops? As mentioned by momoney, the Oct 17.50 covered call (CC) is synthetically equal to a naked Oct 17.50 put. By buying one Oct 17.50 put, you have morphed into a conversion which has locked in the .80 gain. You now have a...

Got it. I really appreciate the feedback.

Very insightfull, thank you. That makes complete sense. So it is better to just do the naked put since it requires less margin. I think I am leaning more towards credit spreads; this way I wont be blown out on a gap or fast moving stock.

Is it not easier to adjust a covered write that is going against you than a naked put? With a covered write, I have the option to roll down, or out a month and down, and it seems that with puts it is much more difficult to roll down or out and down and still have profit potential. Also, with a...

Good point, is there a better adjustment that could be made short of closing out the position for a loss if the short strike is violated? The bear call spread was kind of a last resort to lessen the loss on the put spread. I would probably let myself be assigned if I thought a bounce was probable.

Just bought a put to lock in gains from a covered write on NITE. Originally bough NITE at 17.50 and sold a Oct 17.50 call for 1.15. Just bought the Oct 17.50 put for .35 to lock in gains. If NITE drops I may be able to make a small profit on the put, but my main objective was to take the risk...

Starting a journal of my trades with the main goal of getting advice and comments so I can learn to be a more profitable and less risky trader. I am very new to options, although I have done countless hours of studying and reading several options classics, and continue to virtual trade...

What is easier to adjust? A ratio write--long stock, short two calls; a ratio call spread; or a ratio put spread? It seems that with the puts it is harder or near impossible to roll down and retain a wide profit zone, but with the calls and the ratio write it is much easier to adjust either way.

Thanks for the info. Just trying to find my way through this crazy options world:)

I was wondering if a straddle or strangle can become profitable before it hits the upper or lower BE points if the move happens quick enough after opening the position? Since the delta of the winning side moves in your favor and the losing side loses momentum, can this work? Or do they cancel...

Wow, I just learned a lot by searching it and found a great article on optionetics. Thanks guys. That clears it up and makes it much simpler than what was going on in my head.:p So if I understand correctly, If I shorted 200 shares and bought 3 calls it is the same as two long puts and...

Forgive my ignorance but I am new to the options game. I've been looking at this strategy and comparing it to an ATM straddle. Short 100 shares and buy 2calls at or around the strike you shorted. If the shares make a quick move down, you can profit before you hit the expiration BE point...

I'm new to options so forgive me for my ignorance. I'm here to learn. I see a lot of negative posts about covered calls vs. credit spreads. I do realize that for the same $$ amount a spread technically has less risk than a cc and also has a lower breakeven point. Yet for the cc to experience...

When I started trading stocks around the beginning of the year, I too lost money. About $1000 down on an initial $4000 account. Not good. But it has given me the drive to learn a vast amount of information I would not have if I had been winning. Without this knowledge soon enough down the...

So it seems that a spread with so little time to exp has no room for error, whereas with one 30 days out, there is time for adjustments, or closing out early before exp week?

What about a one week to exp Iron Condor on CME. I put on a virtual trade (very new at this stuff). Opened the JUL 430/420 put for .30 credit and 500/510 call spread for .30 credit. So I figure 6% for the IC with one week and 40 points cushion on either side (CME at 460). Good or no? Any...

Wow, I started reading the 1400 pages of posts to the SPX trader. Great info. Thanks for pointing me in that direction. Start off by reading coach's SPX credit spread trader thread as a primer. The position is hedged by your long, so you know up front what your risk is. Best thing to do...

I've been looking at one week to expiration credit spreads on high priced stocks and indexes. GOOG has some good 5-7% deep OTM spreads and even 8-10% OTM condors. CME has a lot of cushion to it as well. SPX index doesnt seem as great for such a short spread. Anyone do short term credit...

Anyone ever go through the Spread Trade Systems education? I am looking into it and they seem like a notch above the rest, but with all the scams out there its tough to really tell. Any advice would be greatly appreciated.