Marco Hickey

10 Bullish Option Spread Strategies

No I am using the probability derived from the Black Scholes model. Most brokerages have an options calculator and allows for probabilities to be easily calculated. Let me know if you have any other questions.


On May 27 10:04 AM 3DCP wrote:

> Is the calculation on probabilitly of expiring out of the money your
> formula or are you referencing another data source

10 Bullish Option Spread Strategies

Traded out of some of my AAPL spread I started before writing this article... Took a 108% profit today.

10 Bullish Option Spread Strategies

AAPL strategy could have been traded out of today for a gain of 33% at close. I don't think people should wait until expiration for the calls (or puts) to expire, trade them.

10 Bullish Option Spread Strategies

You can't just jump in on an up day, I always wait for a slight pullback... I am actually up 37% on that spread and trimmed some Friday.


On May 18 10:33 AM CoverIsBetter wrote:

> Agree with naysayers here..
> There is a reason these Bull Spreads are so cheap to get into, low
> chance these stocks move up that high that fast in the dog days of
> summer.
> I have tried your strategy so many times only to see the stock trade
> sideways or down. As a matter of fact, I am holding your Bull Call
> Spread idea for USO from MAY 12 (seekingalpha.com/artic...)
>
> and losing money on it.
>
> Just saying.. this is a high risk strategy. My covered calls in WFC,
> BAC, and F are bringing me better sleep at night.
>

10 Bullish Option Spread Strategies

You are correct. I typed APWR by mistake (I like that stock and often trade it), but intended to type the name of Ascent Solar Technologies (ASTI). Thanks for catching the error!


On May 17 08:10 PM connorport wrote:

> APWR is not a solar stock. They are Wind Energy. My call on APWR
> would be to buy June $12.50 or $15 calls. Earnings will be beaten
> severely again on June 1 earnings call and i think we see a run to
> nearly $17. New contracts and the completion of one of the largest
> Windturbine Manufacturing plants in China with support and Billions
> in commitment from the Chinese Govt and Superior involvement by GE
> i think this stock is set to sail to $30-$40 by the end of 2011 if
> not sooner.