Seeking Alpha
View as an RSS Feed

SteadyOptions  

View SteadyOptions' Comments BY TICKER:
Latest  |  Highest rated
  • Could This Strategy Be The Holy Grail Of Investing? [View article]
    Annual duration has less theta, not sure why they recommend 6 month options. Do you have a link?
    May 28, 2015. 11:05 AM | Likes Like |Link to Comment
  • How To Rent Your Options For Free [View article]
    Thanks. There are more on my blog and forum.
    May 28, 2015. 11:01 AM | Likes Like |Link to Comment
  • How To Rent Your Options For Free [View article]
    SA discontinued the options category about 2 years ago.

    You can contact them and ask to bring it back.
    May 28, 2015. 09:38 AM | Likes Like |Link to Comment
  • Mean Reversion And Directional Investing [View article]
    "Basically, longer dated shorts (2-4 weeks) expand the window opening, but make less if the price stays within the weekly window."

    Absolutely - this was exactly my point. longer dated shorts gives you lower positive theta but also lower negative gamma. It is a more conservative play. But the price action is more predictable over the term of 2-4 weeks than one week.

    Could you please give an example of your current position?
    May 27, 2015. 09:59 AM | 1 Like Like |Link to Comment
  • Mean Reversion And Directional Investing [View article]
    Thank you Reel for another excellent article.

    The strategy you do has pretty high negative gamma. So if you sell weeklies say OTM and the market tanks, the loss in that week can be substantial. The gain in the short options and not nearly enough to offset the loss in the short options. Then the market recovers strongly next week, and you lose again.

    To reduce the negative gamma and make the ride smoother, isn't it better to sell options expiring say in 2-4 weeks? Did you backtest it and compared to selling weeklies?
    May 27, 2015. 09:30 AM | 1 Like Like |Link to Comment
  • Why You Shouldn't Put Too Much Weight On Dividends [View article]
    If it makes you feel good to attack me - go ahead, continue doing it. Sometimes it's good for the ego.

    The fact remains: a LOT of people continued to hold stocks for their yield only AND continued to average down because they believed they are getting a good value. You want to continue arguing that it wasn't millions? Fine, but you are still missing my point. Which is that stock should not be purchased for their dividend. Dividend is just a bonus. That's my opinion.

    Maybe I'm biased. As an options trader, I'm used to make 4-6% per month, so 3% dividend per year really doesn't impress me much. But that's just me.
    May 26, 2015. 06:59 PM | Likes Like |Link to Comment
  • Retirement Strategy: Look Ma, No Hands [View article]
    RS, good article as always.

    A question: why not to use the same stocks, but sell naked puts on them? You get much higher income, and also some downside protection.
    May 26, 2015. 03:32 PM | Likes Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    "I have learned two things over the years, never let a large gain become a small gain, and never let any gain become a loss. Trailing stops allow me to do both."

    Well said. Another thing I learned over the years is not to fight the market. If the market says a stock is worth $130, it is what it's worth, no matter what Icahn or anyone else is saying.
    May 26, 2015. 02:05 PM | 1 Like Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    The difference is that people listen to Icahn. So yes, he is a pump and dumper because he would not come with those ridiculous targets (and I'm sure he is aware how ridiculous they are) if he didn't own few million shares.
    May 26, 2015. 02:01 PM | 2 Likes Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    You haven't figured it out by now, after each article got 300-400 comments, and this one is well on its way to get to the same numbers? Hint: each comment brings few dozens extra page views.
    May 26, 2015. 01:00 PM | 1 Like Like |Link to Comment
  • Carl Icahn Is Wrong, Apple Is Not Worth $240 Today [View article]
    Currently the options market doesn't even have 240 strikes. The highest strike is 195, and June 2016 195 calls price 8% probability that the stock will be there by June 2016. So you can understand how absurd the Icahn's target is.
    May 26, 2015. 12:24 PM | 1 Like Like |Link to Comment
  • Apple To $140 By End Of May: It's A Mathematical Problem [View article]
    The exact margin will probably vary between brokers, but in any case it is significantly lower than buying the stock.

    "if the stock follows the Icahn price of 200+" - currently the options market doesn't even have 240 strikes. The highest strike is 195, and June 2016 195 calls price 8% probability that the stock will be there by June 2016. So you can understand how absurd the Icahn's target is.

    "I don't let the tax tail wag the investment dog." - very well said. People worry too much about taxes and let it impact their investment decisions. If I have to pay tax, that means I made a profit. Isn't it a good thing?
    May 26, 2015. 12:19 PM | Likes Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    To be more precise:

    1 standard deviation move is between 128.05 and 132.85, with the stock currently at 130.40. But with increased market volatility, all bets are off.

    Probability of closing at 140 or higher is currently 0.25%.
    May 26, 2015. 11:22 AM | 2 Likes Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    Those attacks are not personal. They just express my opinion about the articles.

    Maybe if more people contacted SA and tell them they are interested to read about options, they would revert their decision.
    May 26, 2015. 10:32 AM | 1 Like Like |Link to Comment
  • Apple To $140: Making Higher Highs And Higher Lows; Funds Desperately Want Back In [View article]
    Retired One,

    This would be a very difficult task. As a non-directional trader, I prefer to look where the stock will NOT be rather where it WILL be. It gives me better flexibility to structure my trades. But 4 trading days is too short time horizon anyway.

    Look at today as an example. The markets selling out hard, and AAPL is not immune, down almost 1%. So what are all those "predictions" worth? To me, they have ZERO value.

    Of course you might be better if you are referring to longer time period (1-2 years), but even then, so many things could happen! What if we get a general market correction of 15-20% (or more)? Will AAPL be immune? I highly doubt it.
    May 26, 2015. 10:04 AM | 1 Like Like |Link to Comment
COMMENTS STATS
2,535 Comments
1,264 Likes