Options Trading Platform

In case anyone was wondering what the current BD rates are:



Effective Date: 06/11/02


Broker Dealer Rate 2.5000 2.5000 0.0000
Cross-Margin Broker Dealer 2.5000 2.5000 0.0000
Short Stock Rate 1.6000 1.6000 0.0000
Equity Credit Rate 1.2500 1.2500 0.0000
Repo Rate 1.1500 1.1500 0.0000
T-Bill Rate 1.0000 1.0000 0.0000
 
You are the first person I've spoken to who really understands what I'm doing with these spreads.
I understand your analysis completely, and of course, I agree with your conclusions.
I am a registered investment adviser, and I started doing these put spreads in June 2000, when we all knew the market was overvalued and was due for a downside correction.
I achieved a 52% return on investment in 2001 and am up over 30% so far this year.
It's nice to meet someone like you who understands what I'm doing, and I'd like to make you a deal.
I am always looking for new clients and with most people losing money in this market, people are looking for ways to make a profit to help them recoup some or all of their losses.
If you get clients for me, I will split my management fee with you.
The only reason I am offering this to you is because since you understand what I am doing, you can explain it clearly to potential investors, and that will benefit all of us; the investor, you and me.
If you're interested in discussing this further, mail me at ron.b@comcast.net.
Again, thank you for your insightful analysis.

Ron Bane
 
Gentlemen,

I just want to share with you my option trading ideas. I simply use Technical analysis, and look for stocks that historically make large moves over a small time frame, have low implied volatility, and technically seem to be in a position to make a large move. I then Buy a straddle/strangle, as close to delta neutral as possible. By definition after the first dollar move one wil be gaining more than the other will be losing. The other tactics I like are using technical analysis identifying piviot points in the stock. then if I am bearish creating a call spread with 4:1 ratio risk reward, or if bullish a put spread same ratio. I usually sell the in the money option to get more credit.

Feedback?
 
Actually right now I am waiting to see if we bounce break the 9/11 lows. we seem to be lacking momentum and I dont like Theta. When we hit the lows I will probably Enter some new positions. My last strangle of KLAC the day before the Intel announcement and I also had a strangle on AMGN. The next morning I took both off for a profit of 2050.00 Before comissions. That was the last trade i have done.

By the way have any on you done Delta Neutral trading using the stock and a option contract total to equal a deltral neutral position. Then adjust when the delta gets out of line therby making a "riskless"scalp. I have read that this is how market makers trade.
 
First, I just want to say that I'm not an options trader, so if I
sound like an ignoramus, that's because I am.


This is a strategy I heard worked well and wanted to get
an opinion from one of you pros.


Here goes: ABC stock $100 a share; Date Jan 1


Sell the Jan 105 call for 3.50
Sell the Jan 95 put for 3.00


Close out position if stock goes to 111.50 or 88.50


Sounds like a reasonable strategy to me?
 
Company reports earnings and warns going forward and drops 20 points.
If you wrote 10 contracts, you lose $13,500!

As the person above me said, back to the drawing board!
 
Lol...no wait a minute.

If the stock goes to 111.50, then the 105 call will have a value
of 6.50 at expiration...right?


If the stock goes to 88.50, then the 95 put will have a value
of 6.50...right? lol

When I say sell, I mean I'm going "NAKED" for this bad boy...lol
 
You must log in or register to reply here.
Back
Top