Option Trades Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Option Trades

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: zx who wrote ()	7/9/1999 11:11:00 PM
From: Woody Johnson	Read Replies (1) of 2341

I just landed on this thread today and its great to see posts that deal with the subject matter as opposed to some boards that are nothing but a forum to trade insults. I have been trading options for years unprofitably until I finally realized that the only way to succeed is to buy intrinsic value and sell time value. Pretty basic. Lately I have been focusing on calendar debit spreads where the long position is a deep in the money call 5 to 6 months out, with the short side about 5% OTM with an expiration within 60 days. While this is a synthetic covered call, the advantage over buying the underlying outright is much more downside protection. Today I woke up to see VSIO down 10 points while my ITM long call was down only 5 due to the fact that it suddenly became OTM, but now it has TIME premium. I covered my short postition at 1/4 and opened a new near term short at a lower strike for 2 1/8. Any comments on this or similar strategies?

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next