Silicon Investor (SI) -- The First Internet Community

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 -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (4662)	10/16/2010 7:46:12 PM
From: wilywilly	Respond to of 5891

dealmakr, You're right, and that's why I stopped dabbling in earnings straddles after trying it a few years ago - when they work, they are spectacular, but the norm was that there was not enough movement on the report to overcome the high prices of the options (or I wasn't nimble enough to grab the opening gap), the volatility collapsed, and I was left with a pair of positions worth a lot less than I bought them for. A few big winners probably got me out at break even or better overall, but I'll take the steady income from selling options every month. It's just that watching GOOG last week makes my mouth water....

To: dealmakr who wrote (4662)	10/16/2010 9:34:49 PM
From: amoezzi	Read Replies (1) \| Respond to of 5891

Did you watch CNBC's Option Action. Recommended: Short Put 290 +5.20 Long Call 320 -12.80 Short Call 340 +6.60 ------------------------- Total -1.00 Potentially you make $20 with the risk of owning the stock at 291. Comments please.

To: dealmakr who wrote (4662)	10/16/2010 10:42:03 PM
From: Gottfried	1 Recommendation Read Replies (1) \| Respond to of 5891

dealmkr, I'd buy the stock and sell a near straddle. If the stock gets called I profit by [straddle premium - (stock price - strike price)] If the put is exercised I own twice the shares at [please do the math :)] and then sell next month's deep itm calls. right now AAPL is 314.74 $310 Nov straddle is $30.50 I've done this with other stocks. Preferred outcome is: the stock gets called AAPL options finance.yahoo.com