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Nino Armienti  

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  • Sell VIX Call Options Against The VXX [View article]
    Hello dparavalos,

    Thank you also for the nice words! I have noted from your last post that you are a technician. Please feel free to email some of your best ideas and I maybe able to construct an options trade around it for you.
    Oct 10, 2012. 11:59 AM | Likes Like |Link to Comment
  • Sell VIX Call Options Against The VXX [View article]
    bbades,

    Thanks for the nice words! You can certainly sell VXX Calls against the underlying VXX and create and "old fashioned" buy-write.
    But, the VXX Feb Calls are being priced off of the current market price of VXX, which in turn is pricing in a VIX somewhere between 17 -18. The VIX Feb Calls are priced off the VIX Feb Futures reflecting a VIX close to 22, hence the edge I am referring to.
    Oct 10, 2012. 11:56 AM | Likes Like |Link to Comment
  • Sell VIX Call Options Against The VXX [View article]
    Len,
    I think that is a great way to to position yourself if you believe volatility to be moving north from here. I have always liked LEAPS, they are generally skewed cheaper as far as options implied volatility is concerned. Keep in mind that VXX just recently reverse split so there are two types of options you can purchase, pre-split and post-split. Also, I would consider selling some front month options against the purchase of the leaps to defray the costs.
    Oct 10, 2012. 07:14 AM | 1 Like Like |Link to Comment
  • Sell VIX Call Options Against The VXX [View article]
    Wayfarer,

    The trade you suggest would have been a big winner had you had the position in place any time over the past three years as VXX well underperformed VIX. Of course, this trend could continue going forward however; a change in the course in the direction of the volatility would probably have the opposite effect whereas the VXX would outperform the VIX.
    The purpose of the trade that I had suggested was simply to try to capture the premiums in the out months of the VIX Options. I try not to form an opinion because every time I do I get clobbered.
    Oct 10, 2012. 06:54 AM | Likes Like |Link to Comment
  • 2 Eli Lilly FDA Plays With Great Potential And Limited Downside [View article]
    Its nice to know that this stock also looks great on the P&F (point and figure) charts. I am not much of a chart technician, however, if I like the fundamentals, risk-reward, etc. and the stock looks good on a chart then more power to the trade!
    Mar 1, 2012. 08:21 AM | Likes Like |Link to Comment
  • Collar The ConocoPhillips Hefty Dividend [View article]
    Hi Chanella,

    The company has only stated that it would happen sometime in the first half of this year, no specific date.

    However, if you sell a put and the company splits prior to expiration, your put price would be determined by the components of the two underlying securities. This can get a little messy if your put is in the money. However, Corporate Action on the options as determined by the Options Clearing Corporation (OCC) is quite easy to compute once the split takes place.
    Feb 25, 2012. 03:21 PM | Likes Like |Link to Comment
  • Collar The ConocoPhillips Hefty Dividend [View article]
    This is the reason why I prefer to "collar" a stock rather than just outright buy it. Any extreme geopolitical event can have unforeseen ramifications upon this stock or the universe of stocks.
    Feb 16, 2012. 10:17 AM | Likes Like |Link to Comment
  • Sears Holdings: Try This Options Strategy Instead Of Shorting The Stock [View article]
    Hi Kenneth,

    I like the strategy. However, SHLD is virtually impossible to borrow and even if you were able to locate the stock the lending rate would be astronomical. I have been in situations like this before and also find the risk of being bought in, and usually at the top.

    Good Luck!

    Nino
    Jan 19, 2012. 09:29 AM | Likes Like |Link to Comment
  • Writing Calls against Citibank Convertible Preferred Stock [View article]
    HI Richard,

    Thanks for the welcome and thanks for reading! You are right. Selling a call spread instead of a naked call for the retail or the unprofessional account makes sense as you would not be offered any cross margin relief in the products.

    Nino
    Jan 14, 2012. 01:20 PM | Likes Like |Link to Comment
  • Writing Calls against Citibank Convertible Preferred Stock [View article]
    Hi DeepValueLover,

    Thanks for reading! There is another Preferred Stock I like, BAC Pfd. L. However, it is not a mandatory convert like that of Citi. It converts regular way and it is way out of the money, but if you like the financials this year it does pay a hefty 9% or so.
    Jan 14, 2012. 01:19 PM | Likes Like |Link to Comment
  • Pharmasset: M&A Presents Interesting Options Plays [View article]
    Hi Adamaxr,

    Thanks for your thoughts! That would clearly work, especially, if the underlying price stays at these levels.

    Regards,

    Nino
    Jan 4, 2012. 11:40 AM | Likes Like |Link to Comment
  • Darden Restaurants Fat Dividend Capture With An Option Hedge [View article]
    Great article! And I like the approach.

    However, I think you have a typo. The Jan. 30 Calls are trading parity to the stock. It would be unlikely to sell those particular calls .80 cents over when the 44 Calls are trading only .30 over or so.
    Jan 1, 2012. 09:48 PM | Likes Like |Link to Comment
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