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know_your_options
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Combined Transactions - Buy/Write etc
Mark As I continue to learn about options. I keep coming across this idea of doing combined transactions. An example is to buy a stock and sell a covered call simultaneously (as opposed to buying a stock and the next day selling the covered call ...
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Writing Call Options
I sold options on a stock, and "before" the expiration date, the stock drops greatly. Can I stop out of the stock, and keep the premium I have sold, or do I need to buy back the option. Hi, You ALWAYS keep the premium you ...
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Covered Call Option
Hi Mark, Hello Pr, Today, I executed my first covered call trade. Need some clarification. Bought EXM 1500 shares cost $37.40 now at $36.64 Sold SEPT 60 Calls @ 2.10 and received credit $3150.00 Three questions? 1) If stock closes around $50 on Expiration Day ...
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Calendar Spreads Vs Iron Condor
Dear Sir, I would like to know whether doing calendar spreads is better than doing Iron condor. I understand that Margins are higher in Calendar spreads & lower in Iron condor. If that is the case is there any benefit in doing calendar spread going ...
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hedge employee stock options using collar?
Hello Mark A colleague has been given 500,000 Microsoft shares which can only be exercised one year later. He does not need to dip into the proceeds even after one year. What should he do so that things work out to his advantage? Agnes Hi ...
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tell me if its a good trade?
Dear Mark, I need advice on a trade I would like to do. I am wondering if writing a covered call on CROX trading around $32-33/share. I am thinking of selling Mar.30 call selling between $5.50-6/contract. I would be buying the stock and selling the ...
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saving the dividend when writing covered calls
Mark In one of your replies, you mentioned there was a process to predict if a call that I sell will be exercised buy the buyer so that he / she can receive the dividend. You also mentioned you had a way of somehow saving ...
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Another question around Short calls
Sir, Would like to ask about robust strategy for selling call options in a higly volatile bullish trending Market. regards, Aditya Aditya, Please call me Mark. 'Robust' is a strong word and I am not sure what you mean. I am guessing you mean a ...
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Doing calendar trade for option
Sir, I am from India and trade Nifty options, typically I write next month Call options and spread the strike price. For cover I was thinking about buying same strike price current month calls.Shall be grateful if you could share your experience on the profitability. ...
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What spreadsheets or programs (e.g., Quicken) are best?
Hello: I've recently started writing covered calls and I am pleased with the results. I'm not pleased with the market right now, but that's another story. What record keeping programs or spreadsheets do you recommend. I'd like to learn more about options and move into ...
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Covered call options
I recently opened an account with TD Ameritrade and wanted to invest $2,000 to begin the option purchasing process. They have emailed me stating that I can only write "covered call options" and since I am a beginner, I really don't understand why or what ...
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know your options: covered calls using LEAPS
Hello Mark - Thank you for providing good and straightforward feedback to the many questions that you get. I have one question that I hope you can help me with: Is there any reason NOT to use LEAPS in a covered call strategy? It seems ...
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know your options: COVERED CALL FOR INCOME
Hi Mark Please explain the risk of getting a call from my broker under this scenario. I am in Canada. Today I bought 10 RIM C JUN 130 for $20.55. TOTAL COST = $20,550.00 I sold 10 RIM C DEC 125.00. I got income of ...
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know your options: rights of an option owner
Dear Mark, Hello Juan, I think I was given bad advice recently. I was long a put option on the MCSI i shares EEM. The option on the date of expiration was in well deep in the money. My broker called and told me that ...
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know your options: covered calls
I just read your article regarding covered calls. It was very well written and informative. I do have one question, however. Is there any circumstance where I would lose the dividend by writing calls? Thank you in advance. Sincerely, Glenda King Hi Glenda, Thanks. Yes ...
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