Calls and Puts for Income 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 : Calls and Puts for Income

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jim P. who wrote (5141)	6/17/2012 6:03:35 AM
From: dealmakr	Read Replies (2) of 5891

Hi Jim, It seems that you like the pipeline and energy sector for trading and if you are doing ok and feel comfortable with the sector probably a good place to trade. In rolling out positions to lower strikes, its a valid play as long as you feel comfortable with your underlying pick and the potential exists for a rebound. In the SOHU trade that I have posted, the original entry @ 55 didn't hold up and the 47.5 puts written now look not so good. By rolling down some puts from 47.5 to 40 for a small credit,it gives some time for the trade to work out, but no sure thing. The Sep 47.5 puts still open can be rolled down for a credit, but am waiting to see if the stock can rally and then close them out, but still have the time to be able to act either way. The Dec 25 puts are near where the cash position of the stock is and am willing to increase my position in that area barring any unforseen events. With the company being profitable its just a matter of comfort and valuation. If assigned another 1k shares @ 40 will have DCA my position to 47.5 where the support resistance area is and then go from there. XRX is one that the option premiums have dried up in the area where I could have the stock called out at a profit. It has tied up a lot of capital waiting to see if the stock can base and turn and hasn't been a good trade. HBAN I feel is one that I can use options to move in and out of a core position while generating income of hopefully 1-2% on capital per month over the course of the trade. By being able to have the stock put to me or called away within a trading range I can play both sides of the trade for option premium. In opening naked calls I am looking to bring in the shorter term calls and roll out a few months more for additional premium and can also add stock to the position if warranted to turn them into CC's. I list some of my trades just to see how they work out from an income standpoint and get some comments. I want to hear some other opinions on what other traders may see as far as what they think how the trade could be done better and wish that others would put a few up now and again with what they are doing and why. I don't list all of my trades as its too time consuming, but like to put some out there every now and then to see how they work out over time. There is always a trade to be had in this market and many eyes are better than 2. It would be nice to have some more imput on this thread and maybe all could profit from it. Good trading dealmakr

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next