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Strategies & Market Trends : Options -- Ignore unavailable to you. Want to Upgrade?

To: Jill who wrote (478)1/1/2000 10:27:00 PM
From: Girish Patel  Read Replies (1) | Respond to of 8096
 
Jan 2002, strike price 200. Calls XQO AT (55 1/4 - 58 1/4); puts XQO MT (61 7/9 - 66 7/8). Big spread. Long calls, short puts. Open interest is low at this time.

You need $60,000 (30%) in margin money for 10 short put options, depending upon your broker. This trade doubles your profit potential with delta of over 1.25 and rising with increase in the price of QCOM. I'd wait for QCOM to take out 185 decisively to put in such a trade.

May be someone can calculate Delta and post it here.



To: Jill who wrote (478)1/2/2000 5:07:00 AM
From: PAL  Read Replies (2) | Respond to of 8096
 
Jill

That is a profitable strategy which has worked well. Refer to play#1 in the following post:

Message 11292775

The call option symbol should be AAOMT instead of AAMOS.

The 10 contracts yielded $ 8,000 net credit, and now with the split, that becomes 40 contracts with strike price $ 50. Cost: minus $ 8,000. Come Jan 21, a big nice problem: what to do with those 40 calls @ $ 125/sh fully paid. Just a 3 month action. LOL

Happy New Year.

Paul


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