Anyone know a good covered call service

Rearden Metal, you're being kind to me. Actually, in this example, 100% of my entire $6.91 investment is at risk, should AGIX go to zero.

Yes, I have studied the company and its financial statements, especially the Form 10K released on March 8th. I have made a considered decision to accept that risk. Apparently you feel otherwise. Think what the markets would be like if everyone shared the same opinion.

Bob
 
Bob...sorry I'm not jumping on your case...however you did say in one of your messages that a "good" broker won't let you sell naked..or something to that effect. I believe good smart option brokers WILL let you sell naked puts, which just gives you more options (no pun intended) to work with. Although my above suggestion is a spread just in case the equity does go belly up. If you believe that it won't then the naked put is really a pretty good deal right now.
 
Thanks Richard. Actually, Schwab is a good broker, yet they "currently" (their choice of words) don't allow uncovered Put writing inside their IRAs.

Schwab has made a decision at the executive level to actively pursue a big slice of the growing option trader market. My thinking is that they will take a closer look at everything once the new margin requirements become effective April 2.

Bob
 
Quote from exQQQQseme:

Thanks Richard. Actually, Schwab is a good broker, yet they "currently" (their choice of words) don't allow uncovered Put writing inside their IRAs.

Schwab has made a decision at the executive level to actively pursue a big slice of the growing option trader market. My thinking is that they will take a closer look at everything once the new margin requirements become effective April 2.

Bob
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I am pretty sure that Schwab recently announced cash-secured put writing in their IRA's. Although I have not tried to do so yet.

Don
 
Quote from exQQQQseme:

Don, Schwab's IRA policy is set forth at:

http://www.schwabat.com/Options_Trading/IRA.aspx

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There it says, "Currently, we allow approved clients to write covered calls and engage in long calls and puts in select IRAs. "

Perhaps they have not yet updated their site.

Bob
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In early Dec they sent me an email announcing the cash-secured put ability in an IRA. I guess their web site has not yet been changed.

Don
 
Quote from exQQQQseme:

Since I first joined the ET forums back in January people here have been jumping all over me at the slightest suggestion that synthetics were anything but equivalent. I have now come to accept that they are equivalent. Yet you try to say that one is a
"heck of a lot better."

They don't seem to jump on you. Maybe I'm not a member of the club yet.
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LOL. I think that Richard was suggesting that from a risk/reward potential, the Apr 10/2.5 vertical spread was a better bet than the covered call.
 
thanks that was what I meant...the fear is the stock going belly up which the spread at least limits the loss which you would experience with the CC or the naked put.
 
Quote from RichardRimes:
Just in looking at the quotes tonight I would think a better "bet" would be to sell the April 10/2.5 put spread. Net risk is 2.5 (with the $5 premium in pocket). All good option brokers allow naked put sells (cash secured) in IRA's. Heck of a lot better than the CC IMO.
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The AGIX news is in. The good news is that the stock didn't go to zero. The bad news is obvious.

As a follow up, from a risk/reward perspective, your suggestion was on the money. At present, the Apr 10/2.5 vertical would have lost less than 1/2 of what the covered call under discussion lost. C'est la vie.
 
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