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Strategies & Market Trends : Buy and Sell Signals, and Other Market Perspectives -- Ignore unavailable to you. Want to Upgrade?


To: Land Shark who wrote (21876)7/21/2011 9:48:16 PM
From: GROUND ZERO™  Respond to of 220516
 
The AGQ premiums are outstanding, this is true... Can you please explain, are you writing at the money? Just out of the money? In the money? Can you provide an example of what you're actually doing? Thanks...

EDIT: Okay, so I just looked over the premiums, it seems just at the money pays the best, you could go a little in the money for some downside safety and give up very little in terms of premiums... is this the idea? TIA

GZ



To: Land Shark who wrote (21876)7/21/2011 10:22:07 PM
From: GROUND ZERO™  Respond to of 220516
 
And one follow up question: do you let them just expire when out of the money and/or have the option owner exercise the option on you when in the money at the time or do you close them out a day or two earlier and just roll them over into the next month? TIA

I've been doing something like that with deferred calls, they pay fat premiums, but better than 8% a month is hard to resist...<g>

GZ