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Strategies & Market Trends : Option Strategies

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To: Cliff0rd who wrote (1737)8/20/2016 8:30:50 PM
From: Jim P.   of 2591
 
I have never been sophisticated enough with options to play an IV crush except by accident. I have followed companies for years and have taken advantage of low IV to purchase options knowing there is news not priced in the options. Some CEO's cannot help but telegraph on conference calls that there is pending big news within a time frame that can be taken advantage of.

As far as selling covered calls and naked puts I do like the extra premium that is priced into earnings season.
The opposite of what you are talking about.

I have in the last 2 months purchased long term calls in KMI and WMB because they were pricing to little volatility and sold near term out of the money calls on then while waiting for a price increase.
Do you hedge your losses/gains with selling calls or puts against your option positions?

I have LV 2 options approval in the IRA's so I can do some very leveraged trading but am trying to keep my risk level moderate to low even though my risk tolerance is rather high. Making 10% or more a year is a big win as my long term needs only require a return of 3% above inflation.

I have had a very good year this year after getting hammered in the energy stocks that I like to play in the last 2 years.

I would like to see more peeps on this board as I plan on focusing on options for the next few years and would like to learn more and need ideas to diversify my trades.

jim
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