If I can get the the Jan ffor > $1.05, yes I will allways roll out unless I were at a bad brockerage house. ((Options House just reduced their fees for 5 contracts to a flat $5 -- so to roll 5 contracts would cost $10) f you had 1 contract --$10. cheap for a sure $90. They could be $0.80 next week. A bird in the hand is worth 2 birds in the bush. The market is a fickle mistress. 10% for januarary is a fantastic returnn. If you read and watch a lot of videos you will find that a lot of mistakes are made trying to sqeeze the last little bit out of the lemon.(aka the investment). In this case, some times a nickle might cost a quarter, It has done it to me! Remember to set reasonable goals, if an investment exceeds that goal snap it up then go look for the next opportunity. If you want all 10% per month, you may be looking a while, if you want all 5%, you may find an occasional 5% -10% and snap it up. Greed is what leads to bad investing -- and bad stock picking -- at least I can attest to that in my experience -- only rarely have my cogent ones gone bad, but the greedy ones, well I dont wanna talk about that!! My cooresponding advice is : if you are willing to accept the reduced monthly income from out month puts, make sure you increase the quality and reduce the volatility of the stocks accordingly. John And do not buy a biotech/pharma stock with trials without a protective OTM put, a stop wont help -- they blow thru a stop like a gang banger on meth.
--- On Thu, 12/17/09, Vandollar <mercdesdrvr@yahoo.com> wrote:
From: Vandollar <mercdesdrvr@yahoo.com>
Subject: Re: [ConservativeOptionStrategies] mnta stupid ?
To: ConservativeOptionStrategies@yahoogroups.com
Date: Thursday, December 17, 2009, 3:51 AM
Why would you buy the Dec $12.50 calls even for .05? Wouldn't it be better just to buy the stock for $11 and sell the jan $12.50 calls? This is the part of CC call trading I don't understand thanks
From: John Hudgens <jdhudgens2000@ yahoo.com>
To: ConservativeOptionS trategies@ yahoogroups. com
Sent: Wed, December 16, 2009 8:08:04 PM
Subject: Re: [ConservativeOption Strategies] mnta stupid ?
| Febs prob wont be out til Monday They have to have 2 months in a row on Monday. Bill U would be the oracle on that -- exactly when they have to do it. I would opine that there will also be some new options for 2011 soon. I cant type and cant see well I meant buy the dec 12.5 for $0.05 tomorrow and then sell the Jan 12.5 tomorrow (roll out) for ~$1.10
From: Vandollar <mercdesdrvr@ yahoo.com>
Subject: [ConservativeOption Strategies] mnta stupid ?
To: ConservativeOptionS trategies@ yahoogroups. com
Date: Wednesday, December 16, 2009, 4:32 PM
Why aren't there any feb contracts? Also John what do you mean when you say buy backan roll out? thx
--- On Wed, 12/16/09, John Hudgens <jdhudgens2000@ yahoo.com> wrote:
From: John Hudgens <jdhudgens2000@ yahoo.com>
Subject: RE: [ConservativeOption Strategies] somewhat different conservativestrateg y
To: ConservativeOptionS trategies@ yahoogroups. com
Date: Wednesday, December 16, 2009, 3:20 PM
| I was just looking at MNTA and the Jan 12.50 were as rich as I have seen them. (1.15/1.00) the dec are likely a nickle tomorrow, might be a good day to buy back and roll out --- On Wed, 12/16/09, Vandollar <mercdesdrvr@ yahoo.com> wrote:
From: Vandollar <mercdesdrvr@ yahoo.com>
Subject: RE: [ConservativeOption Strategies] somewhat different conservativestrateg y
To: ConservativeOptionS trategies@ yahoogroups. com
Date: Wednesday, December 16, 2009, 11:03 AM
Patience seems to be a virtue here, I like MNTA,STEC as low dollar stocks for CC plays, buy the stock right after expiry or when it is in your target price, wait and sell covered calls OTM two weeks before and repeat, looking at the $12.50 cals for MNTA
--- On Wed, 12/16/09, Hand, John <john.hand@opm. gov> wrote:
From: Hand, John <john.hand@opm. gov>
Subject: RE: [ConservativeOption Strategies] somewhat different conservativestrateg y
To: "'ConservativeOptio nStrategies@ yahoogroups. com'" <ConservativeOptionS trategies@ yahoogroups. com>
Date: Wednesday, December 16, 2009, 8:21 AM
I've been thinking of trying that too. Also, with a two weeks before expiry. I am more inclined to do ITM, as I have little interest in owning the stocks. If/when I try it, I'll post my activity. Thanks. Jack -----Original Message-----
From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of John Hudgens
Sent: Tuesday, December 15, 2009 4:05 PM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: [ConservativeOption Strategies] somewhat different conservativestrateg y Since some of you write naked puts on stocks, here is an alternate plan. but does entail more money up front, but the same if you end up with the stock. I have been experimenting with a new strategy the friday before expiration Friday and for the last 3 months it has worked well. I have a list of 15-30 stocks I wouldn't mind owning. Friday before expiration I look for ATM or slightly ITM yields of 2-4 % (premium over stock price) and write covered calls for a week. Doesn't work well on Monday, as too much EV goes away over the weekend, but does work on Friday. Try paper trading it. I did 200 GG, 300 MAC and 200 GNK this last friday. for about 3% for 1 week assuming all goes well. Takes away a lot of market risk -- being in for 7 days versus 4 to 5 weeks. If they take the stock, I'm happy. If I keep it, I write a next month call or sell it. As usual, the fly in the ointment this time was MAC and TSL GG is a big TBD.I would appreciate critical comments | |
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