SI
SI
discoversearch

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 : Options
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: jeremy eddy who wrote (5461)3/23/2000 4:36:00 PM
From: PAL  Read Replies (1) of 8096
 
Jeremy:

here is an example: sold qcom call april 140 (when qcom at 120) at 7. now qcom jumps for the day: sell a bull spread: buy back half of the position at 12 (lost $ 5/sh) and at the same time sell qcom call april 160 at 5. you are even cashflowise, but the strike price has been increased to 160.

other way to finance: sell put on another stock that has not risen so much to finance buying back the cc. when qcom has a big jump, your margin capacity to sell put increases as well.

repair strategy is used to recover losses made from market movement going against you, the emphasis is preservation of assets, and not to make profit which is a bonus if it comes as a result. we don't know what is going to happen tomorrow, that's why we are doing the repair on half of the position.

good luck.

paul
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News