Monday, September 28, 2009

RE: [TheOptionClub.com] Box option spreads

 

No. there isn’t much of a point in that. If it goes against me I have to look for some other type of trade that at a minimum has some chance at profitability. A box in that case offers nothing but risk mitigation. If that’s all I wanted I’m better off just closing the original trade for a loss.

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Paul Seifert
Sent: Monday, September 28, 2009 4:02 PM
To: OptionClub@yahoogroups.com
Subject: Re: [TheOptionClub.com] Box option spreads

 




Have you ever used the boxes to buy some time on a vertical position that is going against you?

----- Original Message -----

From: mcatolico

Sent: Monday, September 28, 2009 4:22 PM

Subject: RE: [TheOptionClub.com] Box option spreads

 

 

Obviously from a retail perspective you have to leg into these to make any money. I still use them as a way to “pause” a successful position when I don’t have a clue on what to do next (which is most of the time) but still want to retain an ongoing trade. Example: if long the 100/110 call vertical for $4 debit and the trade goes my way, I might add the 110/100 long put vertical for $5 if I can get it thus locking in a buck or so.  I can then use either or all of the pieces later on as the market moves around to try other things.

From: OptionClub@yahoogroups.com [mailto:OptionClub@yahoogroups.com] On Behalf Of Jay
Sent: Monday, September 28, 2009 9:40 AM
To: OptionClub@yahoogroups.com
Subject: [TheOptionClub.com] Box option spreads





Wondering if anyone has tried this strategy with success. Please share if had or still using  this strategy.









__._,_.___
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
Recent Activity
Visit Your Group
Give Back

Yahoo! for Good

Get inspired

by a good cause.

Y! Toolbar

Get it Free!

easy 1-click access

to your groups.

Yahoo! Groups

Start a group

in 3 easy steps.

Connect with others.

.

__,_._,___
Posted by at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)