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

To: dealmakr who wrote (5659)	1/27/2013 9:07:10 PM
From: Robohogs	Respond to of 5891

Deal, As used her, it is return on notional if exercised. On the other measure, most way out options meet with ver low delta risk giving way to potential gamma moves if way way wron. I want to be paid for that tail risk, and I still believe that is one place in mkts paying for the risk be ause modt do not want it. One commentator I follow thinks this grinding can continue for a long while UNTIL LT IVs also come in. I find myself extending out at the moment combined with very ST event driven plays. Jon

To: dealmakr who wrote (5659)	1/30/2013 10:38:51 AM
From: Bocor	Read Replies (1) \| Respond to of 5891

sold the HAIN Feb 45 puts this AM. Got a decent premium, understanding that earnings come before expiration, but it gives me room of almost 10 points if I hold them and HAIN disappoints. Frankly, I like their products:)

To: dealmakr who wrote (5659)	1/31/2013 9:55:37 AM
From: Bocor	Read Replies (1) \| Respond to of 5891

Took a shot at selling the Feb 85's on LMT. The yield has more than quadrupled over the past 5 years, and the company plans to continue buybacks. Lockheed Martin has a large economic moat to ward off competition. It's recession-like P/E it seems to have already priced in a lot of the defense cuts, and with the M.E. in turmoil, I can't imagine much else being cut. Seems to be some support in the 86 area. I will take that yield at 85, and wait if I get assigned.