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 : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Dan Duchardt who wrote (10186)	4/1/1999 12:42:00 AM
From: NateC	Respond to of 14162

Dan...you're asking all the right questions....but I certainly don't know where to get your answers. We need a bonafide MM on this thread...to fill us in. but do you think they'd share all their secrets with us...??? Nope Someone with your day trading experience, should ultimately make a terrific options trader. I hate to admit it....but there are lots of us who make some money.....not optimally....not the best...not the classic WINS approach...not even smart most of the time....by simply owning good underlying stocks....and CCing them. I have even... (turn your head, pretend not to hear this)....sold a CC at the MARKET!. And I made 9% in about 3 weeks on that trade......so sometimes I say to hell with the MM's, give them their dime. BUT....I'd surely like to know how to do better, and sometimes beat them, and you are very knowledgeable, and might be the one to do it.

To: Dan Duchardt who wrote (10186)	4/1/1999 1:00:00 AM
From: BDR	Read Replies (1) \| Respond to of 14162

<<Except there are only 60 contracts in existence, and NONE of them traded all day.>> Someone please correct me if I am wrong, but my understanding of options is that there is no fixed number of contracts in existence at any given time. A contract is created whenever a buyer and a seller agree on a price to open the position and it ceases to exist when the respective positions are closed or the option is exercised. Not so?

To: Dan Duchardt who wrote (10186)	4/1/1999 9:47:00 AM
From: David Wright	Read Replies (1) \| Respond to of 14162

Dan, I guess I didn't understand your questions either when I responded. Those are great questions for me too. I have read everything I could find (and understand...McMillan IS a slog, and Wade is a dolt!), and still don't have a clue about the liquidity issues and the spreads in options trading. I especially don't understand why, contrary to what is supposed to happen, option prices don't always seem to move with stock prices. I look at my most recent CC's, and a few days later wish I had just done some swing trading with the darn stocks. The stocks jumped, but the options didn't move...or went down. Hope Herm gives some resources for us to look at. Dave

To: Dan Duchardt who wrote (10186)	4/1/1999 10:51:00 AM
From: Herm	Read Replies (3) \| Respond to of 14162

Hi Dan, What you are looking for goes beyond the focus of this forum on covered call writing, repairs, and leverage using the premies from the CCs generated. The options factors you are asking about is Delta. That is, how much will the option price move relative to the stock's price move. Delta changes daily and you need special real-time software to capture that information. I suggest you check out the OptionVue real-time software at optionvue.com which allows real-time trades at their online brokerage accounts using their software. McMillan was asked to critique the software recently. They do give a 30 day free demo of the software and cost around $1,000 the last time I looked at it. Sounds like a great deal of money. But, in the options business that is cheap. And, if you are trying to do it as a daytrader to earn your living then you have no choice. You need the tools of the trade! OptionVue will give you every possible spread combination, profit potential, probability of trade, and much, much more. It will seek out the plays of the day! Generally, I hate any options with less than 500 contracts. That is a warning sign. Let us know what you decide and find out Dan! Good luck!