Re: [TheOptionClub.com] RIG Trade

 

Speaking from experience, Schwab commissions for any type of transaction are anything but low. Very poor fills on option orders, individual options or spreads. The cost of doing business over there will eat up profits substantially. You might want to look into Interactive Brokers as their option commissions are $0.75 with excellent fills.

Just felt I had to offer my opinion... I now return you to regular programming.

Bill

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From: rvd <rvdidit@yahoo.com>
To: OptionClub@yahoogroups.com
Sent: Sun, May 23, 2010 3:14:35 AM
Subject: Re: [TheOptionClub.com] RIG Trade

 

I had RIG also, but I just sold it. It had a profit but it was an underperformer compared to all the hype of what a great stock it was. If your Shwab commissions on options are low, you could put on  a ratio and create a put condor, which would be basically a free trade, then wait till expiration with possibility to make more $$$. Ross --- On Sat, 5/22/10, chickbull <rdconsulter@ gmail.com> wrote: From: chickbull <rdconsulter@ gmail.com> Subject: [TheOptionClub. com] RIG Trade To: OptionClub@yahoogro ups.com Date: Saturday, May 22, 2010, 9:00 AM New to this board and I have only traded covered calls and protective puts on ocassion. You would consider me a beginner although age 76 retired and in the market over 45 years. My accounts are at schwab and have Level 1 option trading. I'm sure I can learn something from you all and hopefully give something back. Here's a trade I'd appreciate any comments on. I have owned in my IRA, Transocean -RIG for several years and before that Global Marine for many years, which merged with RIG and how I ended up with RIG. Of course, everybody knows RIG now with the mess created in GOM. I bought 2 june 75 put contracts on my long RIG 200 shares. The puts are worth $15.95 each now. The stock is at $59.24. I bought the puts at 2.60. So my choices are: 1. Hold till expiration and excercise for $75 at expiration. 2. Sell only the stock now and continue to hold puts for futher appreciation or depeciation. 3. Sell only the puts now and hold the stock. 4. Sell both stock and puts now. With so much volatility and uncertsinty and having a more conservative approach, I'm inclined to do #4 and take the $75 now. What do you all think? Regards, Ron ------------ --------- --------- ------ 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-unsubscr ibe@yahoogroups. comYahoo! Groups Links <*> To visit your group on the web, go to:     http://groups. yahoo.com/ group/OptionClub / <*> Your email settings:     Individual Email | Traditional <*> To change settings online go to:     http://groups. yahoo.com/ group/OptionClub /join     (Yahoo! ID required) <*> To change settings via email:     OptionClub-digest@ yahoogroups. com     OptionClub-fullfeat ured@yahoogroups .com <*> To unsubscribe from this group, send an email to:     OptionClub-unsubscr ibe@yahoogroups. com <*> Your use of Yahoo! Groups is subject to:     http://docs. yahoo.com/ info/terms/

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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.

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