Hi Mark, Our club owned 100 shares of MCD and (partly for the educational value) sold a March 2009 covered call (strike price of 52.50). This past Friday, March 20 (the expiration date), the option expired and since MCD was a little higher than 52.50, ...
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 ...
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, ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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 ...
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. ...
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 ...