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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Mark Mandel who wrote (157078)	9/15/2011 2:17:12 PM
From: CommanderCricket	Read Replies (1) \| Respond to of 206137

Mark, I've sold a few IOC Sep 60 puts yesterday and so far, even for the trade. Received $1.66 for them and if the stock stays where it's at, I'm going to make a buck a share. Rode the Sep $55's, 57.5's and rolled - all profitable. If you want IOC shares, the Sep puts this week were bargains. With premiums high, let the options market help pay for the shares. Michael

To: Mark Mandel who wrote (157078)	9/15/2011 2:26:38 PM
From: katytrader	2 Recommendations Respond to of 206137

Mark: Playing with puts so close to expiry and the strike price requires thinking through the issue of taking assignment. I have taken assignment in these situations when the plan was to turn around and write calls expiring in the next period. Sometimes the plan doesn't work so well and one might have to hold the stock while writing repeatedly (or possibly sell at a loss.) Example: I took assignment last month on ROSE at 45, having sold puts for $2.95. Sold Sept 45 calls for $2. We'll see where it ends up tomorrow. If called, will write puts next week; if it falls back below 45, will write the calls again. I prefer to take my chances on timing opportunity rather than roll or trade the options with the associated give-up to the market makers. I'm not concerned about give-up in leverage by taking assignment because I don't come anywhere close to maxing out on my capacity. katytrader