tag:blogger.com,1999:blog-1682741342946578196.post4381856071193530131..comments2023-10-31T02:01:16.385-07:00Comments on Selling Put Options My Way: October is hereSelling Put Optionshttp://www.blogger.com/profile/16008073659597959293noreply@blogger.comBlogger68125tag:blogger.com,1999:blog-1682741342946578196.post-49557938361731424292011-10-18T09:22:17.017-07:002011-10-18T09:22:17.017-07:00Jerry,
I've been getting a better grip on you...Jerry,<br /><br />I've been getting a better grip on your rule for open interest and the "100 Open Interest Rule"<br /><br />Do you have a general rule regarding how many positions you would take if the "Open Interest" is only 100?<br /><br />For example, if the "Open Interest" is 100, would you keep your positions to just 10% or 10 Contracts at that Strike Price?<br /><br />What's a good % to go Open a position based upon the amount of Open Interest?<br /><br />Do you ever consider volume when looking at Open Interest?<br /><br />Thanks Jerry!<br /><br />GarrettGarretthttps://www.blogger.com/profile/00448974754872961485noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-32588152849415729132011-10-17T19:16:04.017-07:002011-10-17T19:16:04.017-07:00Hi Jerry!
Garrett here! Just wanted to introduc...Hi Jerry! <br /><br />Garrett here! Just wanted to introduce myself to the community and let them know that I was the one who emailed you regarding the NFLX trade. It went well and I wanted to thank you for taking the time to answer my questions as a newbie to the Options Market.<br /><br />On my quest to find my next trade!<br /><br />To Your Wealth!<br /><br />GarrettGarretthttps://www.blogger.com/profile/00448974754872961485noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-63070523120810738742011-10-11T15:56:23.414-07:002011-10-11T15:56:23.414-07:00Hi all, it is getting to be a long thread. Later t...Hi all, it is getting to be a long thread. Later tonight I will start a new one. Never to <br />change the direction but just to shorten.<br />Pascal; I have lots of the same MSFT. But i always open them in a spread. Usually on the high side of the middle. One advantage is it allows you to do more positions. EX; If you bought the 2013 25 strike for 4.10 and you had an account of 10,000. You could only do 24 of them. But in a spread assuming you received .25 you would have a debit of 3.85 You can now do 25 of them. That alone pays your commission. To do them separate is called ‘legging’ in. sometimes it works and sometimes it hurts. Same with legging out.<br />I received an email from a fiewer that is going to do naked put with NFLX. With NFLX trading around 108 you can sell the 85 for a 2+% ROI. probably a good trade. NFLX is a spooky stock but 3 days and 25 pts?<br />Good comments all.Selling Put Optionshttps://www.blogger.com/profile/16008073659597959293noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-36657262038097251772011-10-11T15:29:39.857-07:002011-10-11T15:29:39.857-07:00For the MSFT call spread idea, what happens *if* M...For the MSFT call spread idea, what happens *if* MSFT gets bought out at say $50 while you're holding short the $27 puts while being long the $25 2013 calls?DMKhttps://www.blogger.com/profile/06561874678836801731noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-79318747008254953002011-10-11T15:26:32.985-07:002011-10-11T15:26:32.985-07:00@Nicky
i did it in two separate ones, first BTO t...@Nicky<br /><br />i did it in two separate ones, first BTO then STO.<br /><br />i got the 2013 call for $4.10Pascalhttps://www.blogger.com/profile/18132898894107518646noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-77792470279555518762011-10-11T14:44:52.035-07:002011-10-11T14:44:52.035-07:00I'm doing cal spreads in an IRA account at TK,...I'm doing cal spreads in an IRA account at TK, no problem. Overall, have 6 AAPLs and 50 MSFTs, so hope it keeps working!ihaveoptionshttps://www.blogger.com/profile/15815032568870486195noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-85820076965452482392011-10-11T13:52:17.196-07:002011-10-11T13:52:17.196-07:00@ DMK
I use Option Express, these are SPX options...@ DMK<br /><br />I use Option Express, these are SPX options not futures<br /><br />Cheers<br />RHMrhmoptionshttps://www.blogger.com/profile/18444258860915045009noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-40807659233280257342011-10-11T13:12:04.267-07:002011-10-11T13:12:04.267-07:00Good luck, did you do it as one transaction or two...Good luck, did you do it as one transaction or two separate ones?<br />I had my order to buy the 2013s for $4.05, did not go through.Nickyhttps://www.blogger.com/profile/11173814827458353610noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-41307767738555431672011-10-11T13:01:06.473-07:002011-10-11T13:01:06.473-07:00Hello all,
Just opent the following:
BTO MSFT +2...Hello all,<br /><br />Just opent the following:<br /><br />BTO MSFT +25 call 25 jan 2013<br />STO MSFT -25 call 27 oct 22 2011<br /><br />Here we go!!!!!!!Pascalhttps://www.blogger.com/profile/18132898894107518646noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-48373449126311877012011-10-11T12:10:57.309-07:002011-10-11T12:10:57.309-07:00Hey Ed
Send me an e-mail and I will give you the l...Hey Ed<br />Send me an e-mail and I will give you the link. <br /><br />Jerry did you look yet? What do you think<br /><br />ragingbullwinkle.217@gmail.comRaging Bull Winklehttps://www.blogger.com/profile/14143622935020034608noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-7828339079854765262011-10-11T11:37:58.453-07:002011-10-11T11:37:58.453-07:00Hey RBW,
I've been crazy busy recently but I&#...Hey RBW,<br />I've been crazy busy recently but I'm interested in a look see. What are the details?<br /><br />Thanks,<br />EdEdhttps://www.blogger.com/profile/17818099385859989867noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-33136132765371927302011-10-11T10:33:07.382-07:002011-10-11T10:33:07.382-07:00TLT selling a call spread Oct. 120/123 .35 credit
...TLT selling a call spread Oct. 120/123 .35 credit<br /><br />I'm Long Jan 105 puts so this helps cover the cost.<br /><br />No one interested in the show? They announced today that starting in Dec. there will be a PM market wrap up show 45Min. before the close every day, this one will be members only with the AM show remaining free.Raging Bull Winklehttps://www.blogger.com/profile/14143622935020034608noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-68657576435443728362011-10-11T10:27:33.977-07:002011-10-11T10:27:33.977-07:00@RH - what platform do you use to trade the SPX? i...@RH - what platform do you use to trade the SPX? is it futures? On IB it seems like you can't trade them (or at least I don't know how)DMKhttps://www.blogger.com/profile/06561874678836801731noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-77487861925104355612011-10-11T10:04:30.382-07:002011-10-11T10:04:30.382-07:00Hi
Well 16 weeks in a row on SPX put spreads with...Hi<br /><br />Well 16 weeks in a row on SPX put spreads with an averegae 0.75% per week. So far so good and thru some rough markets to say the least. I am now experimenting with ICs with again huge cushion.This does increase the probability somewhat of a bad trade but allows to squeak out some more premium (at a large cushion) with the same maintenance.<br /><br /><br />This week: <br />1055/1030 PUTS<br />1265/1275 CALLs<br />0.20 <br /><br />Assumes market will no swing 9% either way in 4.5 days (afternoon Monday).<br /><br />Lets see<br /><br />rhmoptionsrhmoptionshttps://www.blogger.com/profile/18444258860915045009noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-55822034844940465632011-10-11T08:57:27.253-07:002011-10-11T08:57:27.253-07:00I guess you benefit if MSFT goes up anyway since y...I guess you benefit if MSFT goes up anyway since you own the calls, as far as the initial order goes did you do it as a spread order, or two separate transactions? buy the long calls first, then sell then calls.<br /><br />Thanks.Nickyhttps://www.blogger.com/profile/11173814827458353610noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-80056732408169689032011-10-11T08:50:18.484-07:002011-10-11T08:50:18.484-07:00Hannan, you can do any amount you want UP TO 700.0...Hannan, you can do any amount you want UP TO 700.00 on TOS - E-mail me today was a good show you will enjoy it.Raging Bull Winklehttps://www.blogger.com/profile/14143622935020034608noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-7302543611936216172011-10-11T08:50:07.597-07:002011-10-11T08:50:07.597-07:00Hey Jer, how would you do the MSFT spread using pu...Hey Jer, how would you do the MSFT spread using puts instead? I think MSFT is headed higher, The new Nokia Windows phone is coming out, Windows 8 is coming, Facebook IPO is coming, MSFT owns 3%, earnings due on the 20th.Nickyhttps://www.blogger.com/profile/11173814827458353610noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-2517788120054218872011-10-11T07:39:32.923-07:002011-10-11T07:39:32.923-07:00Gary, hmm that is some program to look into. I hav...Gary, hmm that is some program to look into. I have to take a look at how many trades approx I take a year, may be not that many. I paid $8 per transaction with TDA. It sucks but TOS plateform and services make it up.<br /><br />How is everybody doing? <br /><br />I have been exploring how debit spread did with AAPL, PCLN..A $30 increase in aapl increases the debit spread by 80 cents 385/390. A call will earn you at least $16+ or 20X more.<br /><br />Sold bidu naked put 95, 100 last week and yesterday. Today 365/360 credit spread aapl for 10 cents. Almost 4 days left. <br /><br />Best to you all in irrational markets.Hannahhttps://www.blogger.com/profile/09596916341121603593noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-51035865945626553092011-10-11T07:36:17.018-07:002011-10-11T07:36:17.018-07:00Nicky, you will. It just takes a little time and t...Nicky, you will. It just takes a little time and then it starts growing faster and faster. I opened 50 more of the MSFT Jan 2013 at the 25 strike and sold the 10-22 27 strike. I used the 10/22 as it paid a little over double of what the 10/15 sold for. That is a tad over 12% for the nine day trade.<br />Someone asked is a spread considered naked. No. That is another benefit of spreads. A trader just starting out can trade spreads with a lower clearance for options. Not sure if they can be done in an IRA. Anyone know about that? Also the maintenance doesn’t change as the stock moves around.Selling Put Optionshttps://www.blogger.com/profile/16008073659597959293noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-84102239604304145472011-10-10T22:49:36.487-07:002011-10-10T22:49:36.487-07:00Hey Jer, $5,000 for a two week trade? Wow, I wish ...Hey Jer, $5,000 for a two week trade? Wow, I wish I could pull off trades like that, I could quit my miserable job.Nickyhttps://www.blogger.com/profile/11173814827458353610noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-13977620150494719782011-10-10T18:09:13.863-07:002011-10-10T18:09:13.863-07:00Nicky, I also somewhat mimic I- have-options, trad...Nicky, I also somewhat mimic I- have-options, trades. I am rotating more and more into MSFT<br /><br />As I mentioned before i like buying the jan 2013 25 for around 4 and selling the Oct 22 @ the 27 strike. A nine day trade that pays .52 so that is around 12 % for the 9 day trade. Someone asked what I do if the trade is in-the-money. I just roll into the next week at the same strike. If the stock keeps going up, eventually I will roll up one strike and I might have to jump up to a two week advance. One beauty of MSFT is the slow moving part. With aapl the dang stock jumps so much that it can fly by your sold strike a lot. (Both up and down) I am still with around 100 options on AAPL so today was big. With MSFT i am trading around 100 of them also. At this time it is the only two positions I have. With AAPL it is at several different strikes.<br />There is plenty of money to be made out there with these two positions.<br />Good luck all<br />JerrySelling Put Optionshttps://www.blogger.com/profile/16008073659597959293noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-53662934623692531942011-10-09T22:04:45.381-07:002011-10-09T22:04:45.381-07:00Thanks a lot, I think I'll give this a try, si...Thanks a lot, I think I'll give this a try, since you own the long options, the calls sold are not considered naked, right? I don't have approval for selling naked calls.Nickyhttps://www.blogger.com/profile/11173814827458353610noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-56077506224858673732011-10-08T20:18:50.212-07:002011-10-08T20:18:50.212-07:00@Nicky
10/06/11 STO -25MSFT 10/07/11 26 Call .20 $...@Nicky<br />10/06/11 STO -25MSFT 10/07/11 26 Call .20 $496<br />10/06/11 BTO 25MSFT 1/19/13 25 Call 3.75 -9263<br />10/07/11 BTC 25MSFT 10/07/11 26 Call .48 -1213<br />10/07/11 STO -25MSFT 10/14/11 26 Call .73 1821<br />Net:<br />1st week .20 X 2500= 496 (reduced for comish<br />2nd week .25 X 2500=$607 <br />average approx 5.5% per week<br />Nibbling away at the basis, we'll see if this can continue.ihaveoptionshttps://www.blogger.com/profile/15815032568870486195noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-86511342474567342762011-10-08T15:43:56.380-07:002011-10-08T15:43:56.380-07:00This comment has been removed by the author.ihaveoptionshttps://www.blogger.com/profile/15815032568870486195noreply@blogger.comtag:blogger.com,1999:blog-1682741342946578196.post-5670405730047952702011-10-08T12:38:06.854-07:002011-10-08T12:38:06.854-07:00This comment has been removed by the author.ihaveoptionshttps://www.blogger.com/profile/15815032568870486195noreply@blogger.com