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know your options: writing covered calls on index
Hi Sir, Have been a regular reader of your columns and articles on the net. Of late, I have started facing problem while writing calls on index due to higly fluctuating index. Although I start a bit early (typically writing next month calls) and covering ...
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Another question
Mark I read this online (you wrote this) There is an important point that must be mentioned. When you buy the stock @ $42.74, then the intrinsic value of the Jun 35 call is $7.74 and selling for only $7.50 is a foolish thing to ...
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know your options: Covered call writing
Mark- I have a long term portfolio of blue chip stocks which I have owned for years and do not intend to sell whether they go up or down. I am considering selling calls against the stocks with the rationale that if the stocks stay ...
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know your options: IBM rolling over
Hi Mark I bought a few thousand shares of IBM at 117. It is now trading at 115. Do I use puts or calls to protect my positions? Thanks, Rose Hi Rose, The answer is 'either.' I prefer using calls, but take look at your ...
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Covered Calls and the Wash Sale Rule
If I were to buy SPY and sell a deep-in-the-money call against it each and every month, and each and every month it got called away, and I bought it again and sold a call again, month after month, what are the tax inplications, especially ...
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Thanks_ follow up qn-Covered calls. Are the services worth it?
Dear Mark: Thanks for confirming my gut feel. I will read your book (referred on your site may be). Also I believe that you like and recommend OptionsXpress? If I do it in a Roth IRA, there should be no tax implications, correct? Thanks again ...
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Covered calls. Are the services worth it?
There are many companies that offer first free seminars, then charge (2-3K) for seminars to teach proprietary software for covered calls and tricks in down markets. My questions is IS IT WORTH IT? After monthly fees, trading fees/ commissions etc. what is left? Is it ...
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Your Option Hedge Fund Book
Dear Mark, I liked your Short Book on Options so much thank you! that I am slowly working my way through your book to Create Your Own Hedge Fund using ETFs and options. I never realized how many and different kinds of ETFs there are. ...
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simplicity vs. complexity...
jeff@mcassoc.com wrote: hi mark - thanks in advance for your help. i am taking control of my assets in a proactive way (removing them from the planner i've used) and am inculcating some new "tools" to gain ground quickly, with a strong bias toward options ...
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What can I reasonably expect?
Mark, Thanks for your sensible approach. I have done a fair amount of reading over the past month on covered calls. Something my mother said about :"if it seems too good to be true " That having been said, the math seems to suggest that ...
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Rising Stock Price after Rolling
We have been using the rolling strategy and time spreads in your book, "The Short Book on Options," for our long term UAL stock, now $38.90 up from 33.50 two weeks ago. The stock has gotten a little volatile with the price rising to where ...
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covered writes and dividends
Mark, I read your article on covered call writing and have a question. Your article says that if I write a call I'm still entitled to the dividend. That being the case, I have an example I'd like to go through with you. Frontline LTD ...
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Short Book on Options
Mark, I am having trouble understanding spreads as you describe on pages 81 - 83, Rolling For Opportunity. You talk write about "selling a time spread," and "Buy back the all and sell a new call in a spread transaction." I thought a spreads involved ...
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What is a Put option?
Hi Mark, Appreciate if you can explain put option in layman terms. Thanks! Regards, Yumi Sat Hello, A put option is a contract between two people - the buyer and the seller. The buyer pays a cash premium to the seller. In return for that ...
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Tax on option trades
I am trading options e.g. buying a 60 strike and selling a 70 strike. How do I report these trades on my tax returns? Thanks Art Hello Art, Use Form 1040, Schedule D to report a short-term capital gain or loss. But, if you are ...
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