Joey,
Something you may need to watch out for. A few months back I did a covered call position on OIH. During the month of my trade a special dividend was declared and my short call "morphed" into an adjusted option. My brokerage firms platform does not allow roll/out roll/ups on adjusted options. If a special dividend were to be declared you might just find yourself with an additional adjustment problem should adjustment become necessary.
Regards,
Jack
From: Joey Huckabee <trading.ocyg@naguse.com>
To: OptionClub@yahoogroups.com
Sent: Friday, July 10, 2009 11:46:54 PM
Subject: [TheOptionClub.com] OIH BWB [1 Attachment]
Something you may need to watch out for. A few months back I did a covered call position on OIH. During the month of my trade a special dividend was declared and my short call "morphed" into an adjusted option. My brokerage firms platform does not allow roll/out roll/ups on adjusted options. If a special dividend were to be declared you might just find yourself with an additional adjustment problem should adjustment become necessary.
Regards,
Jack
From: Joey Huckabee <trading.ocyg@
To: OptionClub@yahoogro
Sent: Friday, July 10, 2009 11:46:54 PM
Subject: [TheOptionClub.
Hey gang,
Just thought I would ask... I was thinking of putting on a BWB on both sides (Calls and Puts)
and wanted to know what everyone thought about doing this or should I stick with an IC.
Is the Lottery ticket on the wings of the IC worth it?
Here is the trade and I attached the a TOS pic as well:
+1 OIH Aug 09 85 PUT
-3 OIH Aug 09 80 PUT
+2 OIH Aug 09 75 PUT (0.34 Credit)
+1 OIH Aug 09 95 CALL
-3 OIH Aug 09 100 CALL
+2 OIH Aug 09 105 CALL (0.52 Credit)
Thanks,
Joey
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