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 (5163)	11/16/2012 12:39:47 PM
From: Jim P.	Read Replies (1) of 5891

Price drop in the thinly traded calls for ATLS. I had a bid in to cover my 2014 short 45 calls at $1 and a bid in to buy 2014 40 calls at $1.70. I watched for a few days as the ask moved around from $5 to as low as $1.35 on the 45 strike and today the 40 strike ask dropped to $2.30 I bought the 2014 40 calls for ATLS for $2.28 matching the 2014 45 calls that I sold for $2.55 Logic is that if there is a run up in the next year I can sell the long 2015 $25 calls without trying to close out the short $45 calls on this illiquid option. Plus another few dollars in profit potential. Open ATLS long 70 2014 25 calls cost $37484 short 70 2014 45 calls premium $17434 without spinoff shares. short 30 2014 30 puts premium $ 29649 long 70 2014 40 calls premium $16080 profit from closed position and net debit now -$1403 on positions instead of the net credit $14677 before this trade. Open ATLS long 30 2014 30 calls cost $13531 short 30 2014 35 calls premium $19,167 net credit $5636 net credit on all positions plus small profit take $20313

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next