Conservative Options trades
- Thread starter danshirley
- Start date
GLD
Inflation hedge
Jan 2012: Sell the 100 put and buy the 90:
.........P/L
80 ...(630)
90 ...(630)
100...370
110...370
120...370
--------------
req....630
Yield: 59% in 781 days or 27% annualized.
Inflation hedge
Jan 2012: Sell the 100 put and buy the 90:
.........P/L
80 ...(630)
90 ...(630)
100...370
110...370
120...370
--------------
req....630
Yield: 59% in 781 days or 27% annualized.
Nov expiration:
MCD SSF covered call expired on Sat.
Yield = 64/969 = 6.6% in 33 days or 73% annualized.
found money
MCD SSF covered call expired on Sat.
Yield = 64/969 = 6.6% in 33 days or 73% annualized.
found money
Hi Dan,
I am still trying to learn, can you help me finish this table,
TEVA JAN 2011 40/35 BPS
Above 40 = 90.3886 %
./. 35 & 40 = 6.6891%
below 35 = 2.9222%
P/L
30 (431)
35 (431)
37.5 ?
40 69
45 69
___________________
req'd 431
I am using 11/20/09 closing prices on those options, I hardly pay bid / ask, I
usually put in limit order until they get filled. Based on probability tables, wouldn't
Exp = (69 * 0.903886) - ( ? * 0.66891)
- (431*0.02922)
= 62.368 - ? - 12.594682
= + 've
STILL A GO for this trade.....
If we all think long term interest rate has to go up, isn't it better just to sell
Jan 2011 TBT $45 PUT for $5.90
neighborhood...than to play TLT.
It takes me more than a month to track you down, having to work 2 jobs to make ends meet. It is none better in my life to find out these conservative options trades. I have learned a great ton. Since 3Q of 2008, I really have to take more control of my finances instead of relying on 401k and IRA, even I have them mostly in Vanguard, T Rowe Price, Harbor, Wanger and American funds.
Thanx for your response, please keep posting...http://www.elitetrader.com/vb/newre...newreply.php?action=newreply&threadid=179624#
I am still trying to learn, can you help me finish this table,
TEVA JAN 2011 40/35 BPS
Above 40 = 90.3886 %
./. 35 & 40 = 6.6891%
below 35 = 2.9222%
P/L
30 (431)
35 (431)
37.5 ?
40 69
45 69
___________________
req'd 431
I am using 11/20/09 closing prices on those options, I hardly pay bid / ask, I
usually put in limit order until they get filled. Based on probability tables, wouldn't
Exp = (69 * 0.903886) - ( ? * 0.66891)
- (431*0.02922)
= 62.368 - ? - 12.594682
= + 've
STILL A GO for this trade.....
If we all think long term interest rate has to go up, isn't it better just to sell
Jan 2011 TBT $45 PUT for $5.90
neighborhood...than to play TLT.
It takes me more than a month to track you down, having to work 2 jobs to make ends meet. It is none better in my life to find out these conservative options trades. I have learned a great ton. Since 3Q of 2008, I really have to take more control of my finances instead of relying on 401k and IRA, even I have them mostly in Vanguard, T Rowe Price, Harbor, Wanger and American funds.
Thanx for your response, please keep posting...http://www.elitetrader.com/vb/newre...newreply.php?action=newreply&threadid=179624#
For the jan 2011 40/35 I get:
..............P/L
35........(445)
37.5 ....(197)
40........ 55
45.........55
------------------------
Req: 445
return: 55/445 = 12.3% in 425 days or 10.5% annualized
Prob > 40 = 90.4%
Prob > 35 <40 = 6.7%
Prob < 35 = 2.9%
exp = .904(55) - .067(197) - .029(445) = 23.6
try to get a fill at 60 instead of 55.
http://finance.yahoo.com/q/bc?s=TEVA&t=2y&l=off&z=m&q=c&c=
..............P/L
35........(445)
37.5 ....(197)
40........ 55
45.........55
------------------------
Req: 445
return: 55/445 = 12.3% in 425 days or 10.5% annualized
Prob > 40 = 90.4%
Prob > 35 <40 = 6.7%
Prob < 35 = 2.9%
exp = .904(55) - .067(197) - .029(445) = 23.6
try to get a fill at 60 instead of 55.
http://finance.yahoo.com/q/bc?s=TEVA&t=2y&l=off&z=m&q=c&c=
re TBT: I stay away from doing options on the ultras because they use futures and do not track over longer periods of time.
TLT on the other hand holds treasuries rather than futures on treasuries.
Just my bias.
TLT on the other hand holds treasuries rather than futures on treasuries.
Just my bias.