Ratio Strategy

[asdfghj7]

My bad my bad. Here it is. My original post was all over the place.
Heres how it should read.

Long one 6 month ATM call at 100 for $5pt
and
Short one 12 month OTM call at 130 for $5 pt

Mark showed me this was the equivalent after I gave him the right numbers

The other scenario would be :
Long one 3 month ATM call at 100 for $5pt
and
Short two 3 month OTM calls at 110 or $2.50 each.

How do I avoid the naked calls risk other than purchasing a call option above the two 110 calls I sold. There has to be a quick adjustment somewhere for this situation

 

[forex-forex]

Quote from asdfghj7:


Long one 6 month ATM call at 100 for $5pt
and
Short one 12 month OTM call at 130 for $5 pt

Are those figures accurate? The ATM calls seem too cheap. The OTM price appears to be OK. Which stock is this ?





forex-forex
---
Option Guru

 

[spindr0]

Quote from asdfghj7:

How do I avoid the naked calls risk other than purchasing a call option above the two 110 calls I sold. There has to be a quick adjustment somewhere for this situation

The short call is either naked or its covered. Covered means owning shares of the underlying or an equal number of long calls. That doesn't necessarily solve your problem of mitigating the risk but it cures nakedness

 

[dagnyt]

Quote from spindr0:

95 call? Do you have any lifelines left?

No. I see it's the 130 call, and I give up.

Mark

 

[spindr0]

Quote from dagnyt:

No. I see it's the 130 call, and I give up.

LOLOL.. Don't sweat it.

The stats in the chain were bad from the start.
Asd was just practicing his typoese


I'm off to set up for the opening of the Gambling Channel at 9:30 AM. Later.