Adam,
I trade with Schwab because of their great international services. I did not mean to infer that you can not trade "adjusted" options with them, you can but I would have had to buy the "adjusted" option back and sell a different strike as two separate trades, generating two $8.95 +.75/contract commissions. Their software simply will not allow for a roll on these due to adjusted options having different symbols than regular options. The options desk will place the trade for you at the web rate if you call in. I only mentioned this as OIH is and ETF where your original short option can "morph" into an adjusted option if a special dividend is declared and might complicate the Joey's trade.
Regards,
Jack
I trade with Schwab because of their great international services. I did not mean to infer that you can not trade "adjusted" options with them, you can but I would have had to buy the "adjusted" option back and sell a different strike as two separate trades, generating two $8.95 +.75/contract commissions. Their software simply will not allow for a roll on these due to adjusted options having different symbols than regular options. The options desk will place the trade for you at the web rate if you call in. I only mentioned this as OIH is and ETF where your original short option can "morph" into an adjusted option if a special dividend is declared and might complicate the Joey's trade.
Regards,
Jack
From: Adam Green <adam.cell.phone@
To: OptionClub@yahoogro
Sent: Saturday, July 11, 2009 2:28:26 PM
Subject: Re: [TheOptionClub.
On Sat, Jul 11, 2009 at 8:20 AM, Jack Wigandt <nhhobbyfarmer@ yahoo.com> wrote:
>
>
> 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
Which broker?
Adam
__._,_.___
The goal of TheOptionClub is to provide a forum for members to work together for the purpose of furthering our individual understanding option trading. All messages and postings, and any materials circulated are provided for discussion and educational purposes only. No statement contained in any materials from TheOptionClub should be considered a recommendation to buy or sell a security or to provide investment, legal or tax advice. All investors are encouraged to consult a qualified professional before trading in any security. Stock and option trading involves risk and is not suitable for most people. There is no guarantee that any information provided is accurate and, may in fact, be wrong. It is understood that the participants in TheOptionClub have varying backgrounds and degrees of experience in option trading, and that regardless of experience each member is considered a student. As such, any information distributed through TheOptionClub should be considered with a critical mind and not relied upon as an authoritative source.
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
To unsubscribe from TheOptionClub, send an email to:
OptionClub-unsubscribe@yahoogroups.com
MARKETPLACE
Change settings via the Web (Yahoo! ID required)
Change settings via email: Switch delivery to Daily Digest | Switch format to Traditional
Visit Your Group | Yahoo! Groups Terms of Use | Unsubscribe
.
__,_._,___
No comments:
Post a Comment