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Covered calls-downside protection-Collar Trade or Stop Loss
Thanks Mark for your simple and straight forward explanation about covered calls. Having lost in the market through the buy and hold strategy, I now believe the best way to protect your capital and gain in the market over time is through covered calls. Covered ...
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Call Ratio Spread-What to do if a stock declines
Mark, Please help in this situation. Suppose one buys a stock at 93 and it declines to 80. Now one decides to do a repair strategy via a call ratio spread . 1. Sell May 85 calls(short) 2. Buy May 80 calls(long) The idea is ...
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what to do?
I bought 100 shares of apple stock at 138 and wrote a call option (MAY 150). Now the stock is going up more than I Thought. What is the best strategy now, wait for the option to expire? What should I expect if the option ...
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Rolling when in the money
Hi Mark I just rolled my position on FXI (china ETF) and wanted to get your advice on whether I did the right thing so that I continue to learn. Around March 21st I sold an April FXI $133 call when the underlying was at ...
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Optimal strike price for long term investing
Hi Mark I have startied to get my feet wet with options and have made my first few trades in the last month. I am investing for the long term (my horizon is 20 years). I used to maintain a buy and hold strategy with ...
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Monthly income from options
Mark, I stumbled upon the bivio website and read the emails and your informative responses and was very impressed. I have just ordered your book and look forward to reading it. I have a question about using options to create monthly income flow and how ...
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Delta
Hi Mark First of all thank you for your excellent responses to my questions. I am learning about options and I have a question on the meaning of delta The official definiton seems to be that delta is the amount an option price changes for ...
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Covered call options in IRA account
Hi Mark, Just happened to find this forum. Very educational. I wrote a covered call from my IRA account. Once the expiration date came, the stock price is higher than strike price by few dollars. But i seem to still own the stock. what could ...
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COVERED CALL FOR INCOME
HI MARK Hello Nirmal, POT IS VERY EXPENSIVE NOW. TODAY=$198.16 I FEEL THAT IT IS GOUNG UP FOR THE NEXT 1 YEAR. I WANT TO WRITE COVERED CALL FOR INCOME. SO I AM PLANNING TO DO THE FOLLOWING -BUY JAN 2009 150 CALL PREMIUM= $66.70 ...
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Covered Calls
I own a fair amount of AMGN in the 80's. With its current price in the 40's do you recommend writing covered calls? I would only be interested in giving up the stock (taking a loss) in the 70's. Any advice? That's a tough one. ...
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Implied vs. Historical Volatility
Mark I just read your book "a Rookie's Guide to Options" and I loved it. I would say it is a must read for anyone who is getting into options. I have already recommended your strategies to some of my friends. I am currently trying ...
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Covered call position
Mark I would like your advice on a covered call position that I have. At the April expiration I sold an FXI June 156 call for a premium of $6. At that time FXI was trading around 145 so what I sold was an OTM ...
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Looking for some iron condor pointers
Hello, I'm fairly new to options trading. Actually, my first experience with options trading started about a month ago when opened some May iron condors on RUT. I've since closed them for a net credit ( I'm sure you mean net profit, not net credit.) ...
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Covered Call using Leaps
Hi Mark, Hello Allan, I have this scenario for covered call using LEAPS: XYZ stocks is $98 today I buy Jan 2010 50 LEAPS call for $48 This is a very unreasonable price. There is no time premium in this option, and your suggest buy ...
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position repair
Hi Mark, I own POT May 195 calls, which I bought for $10.50(stock was at $197). POT has come down quite a bit in just 3 days and now my calls are worth mere $4.50. What can I do to protect from further fall and/or ...
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