hi mark, Hi Debra, i'm a little confused. which strike is mentioned first when referring to a spread? The important part is to know what 'buy' or 'sell' a specific spread means. To sell a spread always means to sell the higher priced option. Thus, ...
Hello Mark! Greetings from a fellow Chicagoan and former bivio columnist! And greetings to you Candis. I am just starting out studying options. I have recently attended classes put on by the Options Industry Council about options and I have a few (a lot of!) ...
I am looking at the Jan 10 Put +WVRMB at a strike price of 10. I have never sold a put option and this was interesting because it was such a high price: 4.70/5.10 (Bid/Ask). However, it is a non-standard option and states that it ...
on the following strategy regarding the underlying equity: RRC Buy 4 RRCMJ 50 Jan Puts @ 1.80 Sell 4 RRCOJ 50 Mar Puts @ 3.60 Net Credit 1.80 Assumption: RRC will pull back below 50 during January. However, during Feb and/or Mar RRC will advance ...
Hello Mark. I am just beginning to learn about options and overheard someone say "Buy longer term options and sell shorter-term options against it". Could you please explain this strategy and why/when someone would use it? Is this a conservative strategy? Harrison Hello Harrison, This ...
Hi Mark I just read your article. This is what I intend to do Action Sell Call to Open Order Type Market Option Symbol .HLFBG Description HLF FEB 35.00 CALL # of Contracts 1 Real-time Quote $4.4000 Real Time Quote Last Update 02/01/10 3:46:52 PM ...
I have 22 contracts of 730 Feb calls on Google. I noticed that the term "Indicates non-standard option" now appears by the "0" bid. What does this mean? They have no value so will lose my $600.00 that I paid for them. Right? Nor will ...
Mark, Just read your article on selling calls, thanks. My step-father is a bit uneasy in the market now and has 1.5 million in assets. 60% in equities via mutual funds/etf's/some individual stock. Here are my thought and if you could expand or correct me ...
Hello Mr Wolfinger, I told a broker friend of mine that I wanted to buy 100 shares of CAT at $59.00 or $5,900 (rounding numbers for ease) since I think it will go higher and I plan to keep it for a while, but he ...
Hi Mark, My wife Susan is sitting next to me as I write this and she thinks I am an impatient fool. Honesty requires that I admit I am sipping Bubbly as I write, so/but here is my foolish question: she holds 10,000 shares of ...
Hi I came across this site while searching for info on how to price call options (leaps; jan 2011) which I own in UYG. The ETF shares where subject to a recent 10:1 reverse split. Could you point me in the direction of an options ...
May 24, 2010 Blogging at bivio.com My name is Mark Wolfinger and I've been using options since 1975. I want to share some of what I've learned about options to help make your investment club more successful. As a 23-year CBOE market maker, author of ...
Options and Investment Clubs May 26, 2010 I've been a fan of combining investment clubs with options for a long time. The following was published on my blog, Options for Rookies, on Jul 18, 2008. Are you the type of person who prefers to learn ...
May 28, 2010 Basic Option Strategies for Rookies Most people adopt an attitude that tells them that investing and accumulating wealth is easy. Investment club members have the advantage of entering investing with the point of view that investment education is important. I'll continue on ...
May 31, 2010 Introduction to Options Easy to Understand, Risk-Reducing Investment Tools Truthfully, you should not require a special introduction to options because they have been part of your daily lives for years. Options have an undeserved reputation as complicated and risky investment products. Here's ...