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know_your_options
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know_your_options: Coverd Call and beta hedging
Sam, Good question, please post it as a comment at the blog: http://blog.mdwoptions.com If you are familiar with the CBOE Buy-Write Index (Covered calls on the S&P 50o0 index), then you should know that they have an equivalent index on writing 2% OTM calls instead ...
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know_your_options: debit spread
I asked my broker this question today, and he is totally confused. I have a debit spread . I am long ABC March 26 calls, and short ABC February 27 calls. I brought in .58, but the short is now at 2.45 as the stock ...
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know_your_options: Covered Call with Index options?
Emin, Buying protective puts is a very bad choice in my opinion. That turns your entire portfolio into the equivalent of owning call options. Beta is significant, but the best way to handle that is to choose the index that most resembles your portfolio. You ...
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know_your_options: Non Standard Option
Hello, I've come across a non standard option that looks intriguing. It's the Jan 11 45 GMCR. It has a deliverable of 450 shares due to a split back in May. The option is trading at 98.40. What's the risk in selling the call? The ...
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know_your_options: Covered Call Options
Hello Susan, When you 'write a covered call' you buy (or already own) 100 shares of stock and sell one call option. The option is IN THE MONEY when the stock price is HIGHER than the strike price of the option The option is OUT ...
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know_your_options: Re: non standard option
Nov 9, 2010 If you sell a non-standard put option spread: For instance, I sold the Nov 20 $7.50 strike price put option and bought the Nov 20 $5.00 strike and collected the premium. My question is do non-standard options expire like standard options? How ...
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know_your_options: non standard option
If you sell a put on a non standard option and it expires out of the money, do you just keep the premium and you are done or are you on the hook for something more. Hello, if the option expires out of the money, ...
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Oct 1, 2010 October
Oct 1, 2010 October October is a month that frightens many investors. Now that we have seen the best September in the past 70 years, what's in store for October? The one thing that I know for certain is that I have no clue what ...
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Sep 30, 2010 How Many Strategies
Sep 30, 2010 How Many Strategies? There was a recent discussion concerning whether it's best for a trader to concentrate all efforts on a single strategy - in an effort to become an expert trader using that method - or expand one's knowledge, allowing for ...
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Sep 22, 2010
Sep 22, 2010 Hedging Your Portfolio in a Rising Market Most investors get very bullish when markets are rising. And why shouldn't they? They feel very clever for being invested - and feel even better when their careful stock research has them outperforming the market ...
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Sep 20, 2010 Professional Investment advice
Sep 20, 2010 Professional Investment Advice My impression is that most investment clubs enjoy the stock selection aspect of operating an investment club and would not be interested in the opinion of someone who offers professional advice. My opinion is that those who use options ...
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Sep 17, 2010 Options Education
Sep 17, 2010 Options Education Education: Activities that impart knowledge or skill. When I work with investors or write blog posts and books, my objective is for the reader to learn something he/she does not already know, thereby adding to his/her knowledge. So what do ...
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September 15, 2010 Stagnant Markets
Sep 15, 2010 Stagnant Market The stock market has not been very volatile over the past few months. True, it has made some decent one day moves, but they are not repeated and they have been in opposite directions. Unless your timing was outstanding, it ...
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Aug 16, 2010 Recognizing a Mistake
Beth, Thanks for writing. I run every post through a spell checker and re-read every word. Sadly, when the true word (example 'that') is truncated to another 'real' word: 'hat,' the spell checker cannot do the job. I also run each post through voice recognition ...
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Sep 8, 2010 Overconfidence
Sep 8, 2010 Overconfidence Everyone loves to earn profits when trading. After all, that's the purpose of entering an order and making a trade. One aspect of being profitable is that it brings confidence. That's a good thing. When you believe you understand what you ...
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