Option Trading Articles: [ConservativeOptionStrategies] Re: Adjustment of current SPY diagonal leapspread position

Monday, April 12, 2010

[ConservativeOptionStrategies] Re: Adjustment of current SPY diagonal leapspread position

jocelyn,,,,,there really is no specific reason i just never traded spx only spy......commissions are minimal cost with the number of contracts i trade......i also don't worry about taxes....my friends are always saying but you have to pay those taxes....my response is i have happy....if my accountant said i have no taxes that means i made no profit.......so the more taxes the more i like it........but please don't raise the rates.....drjoe
please read the paper would like your questions and input....

--- In ConservativeOptionStrategies@yahoogroups.com, Jocelyn Palmer <jocelyn.palmer@...> wrote:
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> Joe,
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> Is there a reason that you are using SPY rather than SPX?Â It would seem that you are spending a lot on commissions.Â
> Â
> I am in the process of reviewing your paper and I imagine I will have a few more questions.Â Thank you for your patience.
> Â
> Jocelyn
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> --- On Mon, 4/12/10, joe & leigh <gass20@...> wrote:
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> From: joe & leigh <gass20@...>
> Subject: [ConservativeOptionStrategies] Adjustment of current SPY diagonal leapspread position
> To: ConservativeOptionStrategies@yahoogroups.com
> Date: Monday, April 12, 2010, 5:27 PM
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> Â
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> new position established 03/09/2010 spy, an etf and adjustment
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> initial leap position had a delta of 0.9 so i sold at ratio of 9:10 and sold short call atm
> the short call had almost no time value today remaining so i btc the short call position, stc 1 long leap position to cover most of the cost ...then sold the april 120 atm short call.....ratio of 7:9 thereby maintaining upside protection.. ...drjoe
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> 04/12/2010 Sell To Open 7 SPY Apr10 120 Call $0.77 $523.96
> 04/12/2010 Buy To Close 9 SPY Apr10 114 Call $6.05 ($5,460.05)
> 04/12/2010 Sell To Close 1 SPY Dec12 80 Call $41.94 $4,178.97
> 03/09/2010 Sell To Open 9 SPY Apr10 114 Call $2.18 $1,946.92
> 03/09/2010 Buy To Open 10 SPY Dec12 80 Call $36.30 ($36,315.11)
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