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Covered call writing is a synthetic uncovered put write. Those alleged people making 5% per week writing covered calls are in deep doo doo if the stock goes down. 4Q

I completely agree with measuring return on investment with the denominator being the net value of the account. You're so correct in pointing out the danger of measuring return based on either risk, or on a trade by trade basis. Great posting immediately above. 4Q

Why do a collar in the first place? Why not do a debit call spread? It's synthetically the same and requires a hell of a lot less cash up front? 4Q

Spindro, you're right. I meant to say "intrinsic". Sorry about that and thanks for correcting. 4Q

Spindro, thanks for your responses. In the interest of time, let me mention just of one of the ways I like to use this synthetic long put. Example: UNDerlying trading at $33. 1. Short 200 shares at $33. 2. Buy to Open: 2 Sep $35C for 40 cents. One week Later: UND trading for $30...

Spindro Says: 1. It's only fun if you make money. 2. You only make money if your timing is right. 3. Adjusting the synthetic is no easier (or harder) than adjusting the natural. They're the same. My responses: 1. I'll leave it up to each person to define "fun" for...

What is your favorite trading strategy which uses options. Mine is a very simple one. I short 200 shares of a stock and buy two current month (7 to 35 days) Calls slightly out of the money. (Premium generally 30 to 50 cents.) This usually results in a beginning net negative delta of...

Gody3, I actually agree with your correction of my posting. Let me say what I was trying to say the first time. When there is an acquisition by Company A of the Stock of Company B., I ask the brokerage company IN WRITING, usually via email. If I don't get a response, I request a second...

In all due respect for those who tried to answer your question. You better check with your broker. Public discussion forums have their purposes. They also have their limiations. Good luck. 4Q

The incentive provisions could actually make this a good deal for everyone: Buyer, Seller, and Customers. If you're interested in seeing the text of the entire announcement look at: http://finance.yahoo.com/news/optionsXpress-Announces-bw-15052316.html?.v=1

In a press release dated April 28, 2009 optionsXpress (NASDAQ stock symbol: OXPS) announced that it was a $20 Million all cash stock purchase. Optionetics is saying that they did the deal in order to be able to provide better services. These are the facts. Who'se facts do you accept...

optionsXpress has recently acquired Optionetics. No doubt for a healthy price. I can't figure out what their purpose was. 4Q

To all those who contributed to this thread I offer sincere thanks. I do understand the synthetics, but you guys express yourselves great. Thanks again. 4Q

Sorry, I meant to say "AIG" above. What the hell, I'm an accountant who focuses too much on "AGI", which is Adjusted Gross Income. 4Q

The answer to the question of whether the profit would be short term or long term would depend on how long you held the stock at the date of exercise. If a year or longer...it's long term. Otherwise, it's short term. 4Q

Maximum profit if exercised is $1,600, computed as follows: a. Net Debit to open position: 90 cents ($1.00 price of stock less 10 cent call premium received). b. Selling Price if exercised: $2.50, or $2,500. c. Profit: $2.50 less .90 = $1.60 x 1,000 shares = $1,600. I recently did...

Wartrace, you said that you would be receiving unemployment for two years and that would cover all of your expenses. I assume you are aware that the unemployment compensation is taxable. Just want to make sure you are aware of this. Good luck. 4Q

Notwithstanding the sidebar semantic discussion, my point in starting this thread was to point out that this strategy is consistently profitable, particularly in these terrible financial times. 4Q

The wash sale rules in these types of transactions generally do not apply. That's about all I care to say now in a public forum. 4Q

Without going into specifics, I do want to say that each leg is reported separately when closed. That is: Each leg is shown on a separate line of your Schedule D. The exception is when there is an exercise, which is reported as follows: a. Exercise by you of Purchased Call: Premium...