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 : Advanced Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Joe Waynick who wrote (151)	8/17/1998 9:53:00 PM
From: Joe Waynick	Read Replies (1) \| Respond to of 355

PLAT I was unable to get the Dec 25 call @ 3.875, therefore the position was not opened. I'll leave the GTC order in place and once I have the upside protection, I'll enter the position. The 10 Dec 25 puts sold for 1.50 as planned.

To: Joe Waynick who wrote (151)	8/27/1998 11:09:00 PM
From: Joe Waynick	Respond to of 355

PLAT Update! The position is open. Here is the starting point: Message 5589529 Today I purchased 2,000 more shares. My average cost is 23.67 / shr. Tomorrow I will buy 10 more Dec 25 calls @ 3. I'll sell 3,000 shares at 26.25, short 2,000 shares at 26.25, and buy 10 more puts when I go short. Here are the numbers: 1. Bot 2,000 shares @ 24 = 48,000 - COMPLETED 2. Bot 1,000 shares @ 23 = 23,000 - COMPLETED 3. Bot 10 Dec 25 calls @ 3.25 = 3,250 - COMPLETED 4. Buy 10 Dec 25 calls @ 3.00 = 3,000 5. Bot 10 Dec 22.5 puts @ 1.125 = 1,125 - COMPLETED 6. Buy 10 Dec 22.5 puts @ 1.50 = 1,500 7. Sell 3,000 shares @ 26.25 = -78,750 After one trade here is my risk: Upside Risk 1,125 Downside Risk (2,000 * 1.5) 3,000 After two trades I'm RISK FREE AND PROFITABLE! Then it's blue sky until December, swinging 2k shares at $4.5k per trade or $9k per month!

To: Joe Waynick who wrote (151)	8/28/1998 8:49:00 PM
From: Joe Waynick	Read Replies (2) \| Respond to of 355

PLAT Update! Today I purchased 10 Dec 25 calls @ $3. Now comes the hard part -- waiting for the rebound! Here are the numbers: 1. Bot 2,000 shares @ 24.00 = 48,000 - COMPLETED 2. Bot 1,000 shares @ 23.00 = 23,000 - COMPLETED 3. Bot 10 Dec 25 calls @ 3.25 = 3,250 - COMPLETED 4. Bot 10 Dec 25 calls @ 3.00 = 3,000 - COMPLETED today 5. Bot 10 Dec 22.5 puts @ 1.125 = 1,125 - COMPLETED 6. Buy 10 Dec 22.5 puts @ 1.50 = 1,500 7. Sell 3,000 shares @ 26.25 = -78,750 (one trade) ------- 1,125 This position still retains too much risk. My previous post was in error. To be risk free the remaining trades would go like this: 8. Short @ 26.25 & cover @ 24 = 4,500 - 1,125 = 3,375 (2nd trade) 9. Buy @ 24 & sell @ 26.25 = 4,500 + 3,375 = 7,875 (3rd trade - risk free) Here's a better idea (at least for me): 6. Sell 3,000 shares @ 26.25 = -78,750 (1st trade) 7. Sell 10 Dec 25 calls @ 5+ = - 5,000 (sideshow) ------- - 5,375 (RISK FREE AND PROFITABLE!) Now I'm risk free with only *ONE trade!* From here I can trade the range for $4,500 monthly profit until the party ends. Does anyone have other ideas they would like to discuss? Can anyone else suggest other stks that may be good RRT canidates?