Option Maestro

Option Maestro
Contributor since: 2009
I frequently visit farm futures to give me an idea of fertilizer price (link below)... Prices are at 7-10 years for the nitrogen complex... I believe it's why the stocks been getting hammered coupled with a zero dividend last quarter... I believe the merger, if it indeed goes through, will benefit the company seeing as they're not taking any of the debt from RNF...
I am wondering where I can find distribution estimates beyond 2nd qtr 2017 if possible. If not what factors would you assume make the distribution beyond that greater or less than say 35 cents? I expect natural gas to grind higher very slowly longer term but see lots of volatility in between. Perhaps a range between 3.25 and 5 for 2014. Will this do better if gas prices spike or is it still too early? I should understand these better, and thought I did but the market has obviously proved me wrong. What are your thoughts on CHKR versus say SDR, ROYT, PER, and ECT?
I am looking to add to Corning again at these levels. Looking at November call spreads.
I took my money out of this spread today. I sold roughly 60% of my position and now my remaining spreads are on with zero risk, or the houses money.
No there is a covered put under it, maintenance is $500 maximum. Both of the brokerage accounts I use only lock up $500 for each spread I am short. $15 - $10 = $5 x 100 shares = $500. You cannot lose more than $500 but you receive premium so it's even less. By the way, where are you getting that it's 2 years? The options are January 2012.
Yes I made a typo. As you can see the percentage calculation reflects a return of $300 from the spread. I will contact SA and see if they can edit that to avoid confusion. Thanks for the catch.
Buying the shares, and Writing (or selling) the call option(s) against them. But yes it could be "Write Right Now" too.
Thank you. Happy trading!
Etop, I use several brokers. It depends on what you are looking for I suppose. Do you want tools, price, fills, etc...? I use TDA/TOS for equities and options, OptionsHouse for large option orders, and OptionsXpress for futures.
Premium columns reflect per contract prices as of market close Friday.
The $8 credit was as of close Friday.. As of yesterday's close the net credit was roughly $4 for the May ratio... I assume there may be a chance to get in this morning (Tuesday) for slightly a higher net credit judging by pre-market...
Apple is a great company, which is one of the reasons I didn't mind having the shares put to me for 200.. Not that I usually sell puts more than 60 days until they expire, but I am tempted to buy the July 200 put options and sell 2 of the July 190 puts against each one for a net credit of $220 per ratio spread.
Thank you for the comment and sorry I have not got back sooner... Once the bearish pattern was voided on March 4, 2010 (near the close, when it looked like Apple would finish the day above the open price from March 2 - which it did) I decided to close one of the 200 put option contracts, and the 210 put option contract from each of the ratio put spreads I opened, leaving the same amount of naked Apple put contracts open as before just raising my break even point if the stock ended up trading lower. I took a realized loss at that point of about $80 per ratio put spread but assuming Apple closes above 200 per share at March expiration I will lose much less and just about break even (after commissions).
Looks like today is the day we've waited for! Announced after hours Friday and up almost 4% as of now.
On Jul 01 09:03 AM ScroogeMcduck wrote:
> I agree with you marco Ive been waiting anxiously for v to dip below
> 60
> A great buy!
Not a bad pick for choosing out of 37 stocks, taking profits in it today.
Yes before commissions, however I pay flat $9.95 for all trades whether it's 1 contract or 2000 contracts through OptionsHouse... Check them out at: www.kqzyfj.com/click-3...
On Nov 07 02:00 PM TCK wrote:
> " even on eBay (EBAY), which sold off nearly 10% after earnings.
> I was able to purchase back the put options (closed the position)
> for a $4 per contract gain the following day. "
> After looking at the the option prices, presuming this means the
> profit was .04 per contract before commissions ?
Yes, I took a quick beating on BIDU as it opened below my target price of 360; but just as I close the position on a large pop (as profit taking may occur in the next session(s)), I hold the put on a massive sell off with a stock like Baidu, I really don't mind taking ownership of (as stated in the article, is the key to this strategy), because buyers will most likely take advantage of the "new" lower price (as they did). Baidu is almost 50 points above the strike I sold with less than 2 weeks until expiration (not to mention the high theta just eating the premium away), and the position is currently resulting in a gain as of Friday's close. As stated in the post, these are all stocks I don't mind owning going forward, and if they get PUT to me, I'll take the stock at expiration and start cost averaging down by writing covered calls on them. Thanks for the comment.
On Nov 07 12:53 PM User 447425 wrote:
> You did not mention how thay BIDU earning strategy worked out for
> you?
It should have been Monday October 26, as Baidu reports after the bell today. Sorry for any confusion.
I am quite happy I opened this position! Apple just killed the expectations! Will certainly be happy tomorrow! Another positive for me is that it is bringing shares of Google up to a new 52-week high after hours!
Sold the 40 puts yesterday on PWRD for $150 per contract and just closed the position for $20 per contract.
This TIF strategy is really paying off!!
Calculations are based on prices as of market close Monday September 14.
On Sep 15 09:42 PM S2009 wrote:
> The table is incomplete, no price at the time of publication or no
> bid/ask for options. So if you do not see this table exactly at
> the moment of publication (which is not shown, is it Sep 2009 or
> Jan 2007 - nobody knows) it is basically useless.
I thought it was unusual to see the Regions Financial (RF) September 5 puts trade amongst the most active, as it would need to lose about 12% over the next 5 trading days (which includes a $0.10 dividend spin out) in order for the bet to pay off. I noticed there was an unusually large amount of straddles opened for the December S&P 500 ETF (SPY) 105 strike.
Good article, I am using the UCO and USO for my oil trades and will remain in the call spreads until: (A) I get called out or (B) the dollar starts to get stronger (which I don't see anytime soon). I am also long the GLD LEAP 2011 50's and have been using diagonal call spreads to create income monthly. As of now I have written the September 98, 99, 100, and 101 against my LEAP GLD calls.
Good information. I like CLX and ABT. Although the dividend has been cut greatly y/y, I still hold Frontline (FRO) for the yield.
Good info to know, thank you.
Correction: Crude inventories will be released Thursday due to the holiday Monday.
Thank you Eli.
On Sep 09 08:52 AM Eli Hoffmann wrote:
> ENCO! Great call Marco!
I purchased some September 30 put contracts while the stock was near $50 a share at noon. I think it is way overbought! Implied Vol on the put side should keep rising meaning even if the stock continues to rise, I may profit from the volatility on the puts... Have an order in to buy them back for $150 per contract (in at $80).
Good thoughts. I have similar strategies and other short option positions on many financials. I am hedging with Citigroup January 2010 5/12.50 Vertical call spreads.
I have been selling in the money calls for a week now... I actually splurged and even bought September put options on Thursday and Friday as well for many major banks as well as the highly leveraged FAS.
No option delta is not a reason to buy or sell a stock/option in my opinion. I state that the pricing can change quickly over night and it does. No it's not my only analytical tool. This strategy is simply a way to get into a continued rally for cheaper than purchasing the stock (in case the market sells off). If you purchase slightly in the money calls on the major indices and it rallies you make money, if it sells off you have limited downside to the price paid for the spread. Have you read any other posts? Most of my posts talk about selling calls or puts on stocks to gain the premium and protect. See this site about price distribution www.hoadley.net/option...