cash flow investing for retirement 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 : cash flow investing for retirement

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

From: tyc:>	11/29/2011 4:43:32 PM
	of 94

There should be a charge for the entertainment value of options. My G shares had been called away (profitably). Is it possible to enjoy the income-benefit of short calls without the downside risk of covering them with common shares ? The question remains to be answered. I sold two G dc$52 calls naked, but hedged by the upside potential of my entire PF. More particularly I decided to consider my 4400 LSG shares as a hedge for the short calls (and vice-versa). At the close of business today the hedge has a bullish bias of ~1000 shares of LSG. As I see it, that's the temporary measure of the downside risk; $1,350 as opposed to ~$10,000 at risk in an orthodox covered call. I will monitor the hedge daily and report occasionally. It might be of interest.( In a way it's comparable to a "pairs trade" so nothing special)..

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next