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Calculating Rates of Return
If you sold a cash secured put, how do you calculate its rate of return and its annualized rate of return? Thanks - Barry Hello Barry, This is one of those things that different people choose to do differently. Here is the only method that ...
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Nice work.
Dr. Wolfinger, I just want to thank you for your well written site. I've got a Michigan JD, an MBA, and was formally a CPA. Your site is well written and easy to understand, yet it very clearly explains strategies and issues. Thanks, George Vrabeck, ...
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Exercising out of the money options?
Hi Mark I trade options by selling them and all this while I am unaware that out of the money options could be exercised. A friend of mine recently told me that it's possible although not probable this would happen. Is it true? I have ...
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Exercising out of the money options?
Thank you very much my pleasure for the quick response Mark. Very informative and now I'm aware of the risks :) I have a friend who always dissuades me from covering out of the money options for a nickel or a dime as he says ...
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Calculating Rates of Return
Hello Mark, How do you calculate the rate of return of a covered call when legging in? I have owned the stock for some time and have made several purchases of this stock over time. Now I am selling a covered call and would like ...
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Covered Call: What to do when stock falls rapidly by Mark Wolfinger on 06/10/2005
I just came across this article while trying to learn how to roll out of a covered call position. You mention that you buy back the call option. Technically speaking what is happening 'under the covers' here? 1) Does the brokerage put a hold on ...
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Buying back Calls
Hello again. Hi Lance, I have been reading all of your posts per your suggestion from yesterday. This particular thread is interesting. If you have a stock that is rolling, say $25-$30, you could sell the $30 strike when the stock is approx $30, and ...
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Looking at Market indexes
Hi again Mark. Though not specifically on the topic of options, market movement does affect their pricing. As I watch the markets each day the indexes (DJIA, NASDAQ, S & P) are almost identical tick for tick (a bit of an exaggeration here). How is ...
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Question
Hi Mark, My question is simple. I have been a buy and hold type investor for many years and recently learned about writing covered calls. Several people who have attempted to recruit me for a stock/options training program have indicated that it is not uncommon ...
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your book
Hi Mark, Good morning Debra, I'm interested in buying a copy of your book "Options for Rookies" [T he Rookie's Guide to Options] which was highly recommended by Preet. I know you're working on a new edition, was wondering when it would be available, and ...
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Use of Options to secure the Dividend
I was trying to find a strategy to earn the dividend of the stock without taking the risk of the fall in the stock price. Below is the trade: Buy 100 MO at $16.50 = $1650 debit Sell 1 January 2010 $5 strike call for ...
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Married Puts
Would you kindly point me to a good beginner's resource or primer for trading married puts? I would like to go long on some limited partnerships (they pay decent dividends) and marry them with corresponding puts that protect my downside. Some gas pipeline and storage ...
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"Diagonals"
Hi Mark, I'm just wondering why some spreads are called "diagonal"? I just read about a strategy where you buy back a call you previously sold and at the same time sell a different call further out in expiry and at a higher strike price. ...
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ns calls
hi By mistake I bought 50 NS calls for BAC july 09. strike price is 15.00 at $ 1.15 now the stock is 13.78 today now it is $ .15 is it worthless or how it will work . can you give advise please thanks ...
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video
Thanks Deb, I now have learned that some people could see it, and others could not. Thanks for letting me know Best, Mark -- Mark D. Wolfinger The Rookie's Guide to Options:The Beginner's Handbook of Trading Equity Options blog: http://blog.mdwoptions.com/options_for_rookies website: http://www.mdwoptions.com
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