| For some interesting potential covered call writes, look at ZION, SUN,APOL,WFR, YHOO,VLO, TAP,NTRS, AYE,HCBK, and JAVA. Second month covered writes, momentum turning positive, close by stop loss
--- On Thu, 12/10/09, Bill Ulivieri <uliv2003@yahoo. com> wrote:
From: Bill Ulivieri <uliv2003@yahoo. com>
Subject: Re: [ConservativeOption Strategies] Hit a great one yesterday --RIG
To: ConservativeOptionS trategies@ yahoogroups. com
Date: Thursday, December 10, 2009, 9:33 AM
Anything you want to know about options go to www.cboe.com For contract adjustments click on Trading Tools / Contract Adjustments and then do a search for your symbol. Bill
From: "Dan" <delta1@cfl.rr. com> Date: Thu, 10 Dec 2009 10:05:34 -0500 To: <ConservativeOptionS trategies@ yahoogroups. com> Subject: RE: [ConservativeOption Strategies] Hit a great one yesterday --RIG
Thank's for the information. When I looked at the numbers John Hudgens had posted, it really looked like a good deal with a positive one month return no matter what happened even down to a price as low as $55.50 with the stock closing at $80.16 yesterday.
I checked with my broker and found that the YOBAP option is for 69 shares and $3,418. That means the call had an intrinsic value at yesterday's close of $8949.04, not the $8,016 I would have expected. The RIGAP $80 call option is what I think of as a standard option with no cash component and a call on 100 shares. The return calculations on the YOBAP option spread become more complicated because of the cash component and lesser number of shares.. It appears that at any price higher $66.50 the YOBAP option will be called away. Dan (dan2fl) From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of Bill Ulivieri
Sent: Thursday, December 10, 2009 8:14 AM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: Re: [ConservativeOption Strategies] Hit a great one yesterday --RIG
Check to see if there have been any corporate actions, cash dividends, etc.
Maybe its 100 shares PLUS 26 dollars in cash for a deliverable contract in assignment.
Stay away from those options. They're usually more illiquid and harder to price.
Bill
From: "Dan" <delta1@cfl.rr. com> Date: Thu, 10 Dec 2009 07:45:18 -0500 To: <ConservativeOptionS trategies@ yahoogroups. com> Subject: RE: [ConservativeOption Strategies] Hit a great one yesterday --RIG Perhaps you can help. I went to Yahoo and looked up the symbols for a January 2010 call on Transocean (RIG). I found the following symbols and prices. RIGAP $3.72 YHOAP $0.09 YOBAP $9.65 Do you know what causes the great difference in prices between the three options, all supposedly call options with an $80 strike price all on the same company? Dan (dan2fl) From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of John Hudgens
Sent: Wednesday, December 09, 2009 10:09 AM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: [ConservativeOption Strategies] Hit a great one yesterday --RIG
Had to brag -- but only of the blog -- Transocean is a great company BTO VOIAM RIG Jan 11 65 @ $21.40 STO YOBAP RIG Jan 10 80 @ $9.50 if it works, may be my best ever 44.2% in 39 days |
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