Dear Mark, McMillan writes "the writer may often do best by writing half his position against in the moneys and half against out of the moneys on the same stock." However, he did not provide details such as a. Which stock is the best cadidate ...
fwolfgram@yahoo.co.uk wrote: Hi, Is it possible to use options to protect your capital if you are buying a stock just to collect the dividend ? i.e I purchase x amount of PFH stock just to collect the dividend. At the same time of purchase I ...
Hi Mark, I am trying to understand the basics of options. Please explain the terms contingency orders and off set orders in trading. thanks, Balakumar R Hello Balakumar. First let me tell you these terms have little to do with the basic concepts regarding options. ...
clevey@mindspring.com wrote: > Mark, > > I'm considering writing covered calls against the Russell 1000 Value index as a conservetive approach to options. Is > this a viable option? > > > Yes. The only negative is that option premiums are relatively low. But that ...
kumar.singaravelu@citigroup.com wrote: > Hi Mark, > > I have not understood the Covered Call Option. Can you > provide a simple example. > > > Kumar, > Example: > Buy 300 shares of QCOM, paying 43.39. > Sell (write) 3 May 45 calls, collecting a ...
ehowells@infostatins.com wrote: > Hi Mark, > I have a concern/question about options and sale wash rules. > I have a stock that I have been writing covered calls on. > The stock has continued to move higher and higher. Rather > than losing the stock, ...
thecthing@yahoo.com wrote: Hi, Mark, I've been writing a few covered calls, and am now interested in trying a put vertical spread. I am considering writing one that is out of the money. I don't yet understand, though, what happens if my stock is between the ...
stefan@socal.rr.com wrote: > I enjoy reading your column on options. > > I have a friend who has been writing covered calls on his own stocks for several years and is teaching me how to write > them. In my readings, it seems in-the-money calls ...
zcbroker@neobee.net wrote: If I buy put options for 0.60 each , 100 options for 1 underlying , with the strike 650 and a price would be 625 at the last date , jun 2007, what is the profit? thanks. Hello ZC, This would be a ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...