What is the best options trade

[Chad]

My favorite trades are covered calls and collar trades.
They provide stable returns with low risk.

 

[spindr0]

Quote from dagnyt:

You just learned of this strategy today?

You have no experience using it?

You have no track record?

Yet you propose that someone else trade this strateg?

Learn it today, be an ET expert by tomorrow

 

[noob_trad3r]

I like selling options that are priced above fair value.

 

[lasner]

Quote from Chad:

My favorite trades are covered calls and collar trades.
They provide stable returns with low risk.

What's a collar trade

 

[dagnyt]

Quote from lasner:

What's a collar trade

Collar:

Long 100 shares
Long one call
Short one put

Options DO NOT have same expiration and strike.

see link for more details

Mark
http://tinyurl.com/lwxo4x

 

[MTE]

Quote from dagnyt:

Collar:

Long 100 shares
Long one call
Short one put

Options DO NOT have same expiration and strike.

see link for more details

Mark
http://tinyurl.com/lwxo4x

Mark,

I'm sure it was a brain fart, but that's not a collar. In a collar with a long stock you short the call and buy the put.

 

[KINGOFSHORTS]

Quote from dagnyt:

Collar:

Long 100 shares
Long one call
Short one put

Options DO NOT have same expiration and strike.

see link for more details

Mark
http://tinyurl.com/lwxo4x

Wow thats a very bullish position

 

[Chad]

I usually start the trade with a covered call (long stock, short call).

I'll add the long put (turning it in to a collar trade) if the stock goes very bearish. Usually if it breaks a support line.

Regards,
Chad

 

[billb2112]

Let me ask the OP an equally silly question ... what's the best stock?

 

[traderlux]

Quote from vhehn:

so you start with a short put then if the stock goes down you buy a long put?

Dont you just love it when that pitch comes in just right and you get that easy hit?

Kaazzaam!