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Strategies & Market Trends : Calls and Puts for Income -- Ignore unavailable to you. Want to Upgrade?

To: dealmakr who wrote (5147)	6/18/2012 12:26:02 PM
From: Jim P.	Read Replies (1) \| Respond to of 5891

Current margin requirement from Schwab on short ATLS puts is $45,000 The thought process behind my trade I posted but your numbers were more work then I have done since I decided on the trade. You have one error in that the calls carry the spinoff shares current value $2.67 as there are 10 shares of ARP attached to the options owned at $25 but not short at $45. That would be another $16000 potential gain if ARP share price stays the same. I will post my actual trades in another post. I am sure that the discipline you have shown in keeping track of your trades would make me a better trader then I am. I tend to pick an idea and run with it in a large bet and take profits to lower my risk as the opportunity presents itself. The big risk on this trade is the short puts. My actual trades match my general idea but I bought a few extra calls and took some profits as I will post. The tax issue is a big deal and I am keeping an eye on for timing. I do expect to pay long term capital gains on the remaining options but have made the mistake of doing things for tax purposes before and good timing (luck or design) is better then lower tax rates IMO. Let me gather my trade info and post trades and dates. jim