Search results

If you are hitting your profit target each month, what's the problem? Oh yeh, I know the answer - you mentioned that you're concerned about a black swan event. Risk and reward go hand in hand. If the black swan concerns you, then you have to give up some of the reward to reduce the risk...

Making over 50% per year is a no brainer because successful traders are allowed 29% slippage per annum (making 5% per month is a compounded 79% per year) LOL. But of course, only on the internet...

Instead of all of the corrective comments: Post the position with the correct sign and remove the mess ups. It will be easier to follow.

Even tho it may be a bit more work for you, here are some suggestions: Start a separate chain for each position that you want to discuss. If people reply, the intermingling of responses to MSFT and WYNN (and other possible positions) is going to make it tough to keep track of. Redo your...

What is the best way to profit from time decay? By selling options that move in the right direction. Now "What's the best strategy for selling premium?" is a whole different question.

POZN is down 9 bucks to $8.60 Well, so much for understanding the fundamentals of this event.

The ignorance of the user does not change the risk of the strategy. Naked puts and covered calls have the same risk/reward profile and barring any small price discrepancy, the puts have the advantage. The reason for the selling restrictions is the danger of leverage due to lower margin...

You have to be sure that you're getting current quotes and that you're comparing bid to bid (not last trade). With iliquid options, last trade comparison can be misleading. Since it's the Q's, not an issue. The simple answer is that if the put's value rises while the underlying rises...

When a person writes an option, he must be covered or put up margin. For calls to be covered, he can have a position in the stock or in another option with the same expiration or longer and the same strike or lower. Without these, the writer is said to have unlimited risk. So "covered" for...

And on his honeymoon, he told his wife, "This won't hurt at all." :)

Covered call sellers ALWAYS make money on their calls. It's the underlying stock that they have a problem with :)

Well, you can always hope for the stock at 90 :) Isn't this a little early in the month for RC's? Will you adjust the pos. if Sep vols don't break 60? If so, how?

Don't be a Waterboy. "You can do it!" (wink) I don't think that the new drug is going to be anything of great significance in the world of medicine because it's just a combination of two existing medicines. However, it's of great importance to POZN because of their lousy financials (EPS of...

There's a pending FDA decision on a migraine medication which is a combination of 2 existing migraine meds (see earlier post in this chain).

LOL. Who's taking about put/call parity? Claiming that the the risk/reward is in your favor with the calls based on a premise that the stock is more likely to rise 12-1/2 pts than it is to drop 7-1/2 pts is specious. You buy the calls because you think the stock is going up. You buy...

Unless your investment adviser has a solid record of timing and profitability, I wouldn't be in a dither to rush in. If not, I'd bet that his motivation is fees/commissions (from you). If you had the 15G's today, what would you do with it? Would you buy specific stocks? If so, sell 15...

So we should take directional positions based on how much the option can make rather than which direction the stock might go? The problem with your analysis is that with the stock at 17.50, you're comparing an ATM 17.5 put with an OTM 20 call. In addition, you're postulating a 7-1/2 pt drop...

Without those inputs, it's impossible to guesstimate what option prices will be at a future date.

LOL. I don't think that even the IRS understands the tax details relating to options! Be that as it may, my take is that the closing transaction is a capital loss (no deferral). But the sure fire way to avoid all of this hassle is to be out of the entire position by 12/31.

One thing for sure, IB's low commissions have increased my profits beyond the savings attributable to commissions alone. That's because I can forget about commissions when deciding my next play. For example, if I want to try a new strategy I can play one contract. Or I can scale into a...