Big Dog's Boom Boom Room Message Board

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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Big Dog who wrote (142258)	12/2/2010 3:07:54 PM
From: CommanderCricket	1 Recommendation Read Replies (1) of 206326

Big, I own a core position in ATPG and use it to write calls against. If the price is above $17.50 on expiration - great, I'll be a happy camper and they can have the stock. If the price is below $14 on expiration, I'll also be a happy camper as I'll be put lower cost basis shares. These new shares will used for selling calls against. I'll lose money on this strangle if the stock is put to me below $13.10. Don't care if ATPG goes above $17.50 as I'll will have made 5% - 7% in option premium plus capital gains on the position. Wash, rinse and repeat every month. It's very cool watching a high theta position decay away and I even make money over the weekend.

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