Eric Morris

2 Comments

    • Options Trader: Thursday Wrapup [view article]
      Hey Phil,

      I've spent the better part of this morning and afternoon reading your articles. I have been long COP for a while now, bought at close to the bottom. But now I realize that the 20% gain or so could have been far greater had I have utilized options. I'm not that knowledgable on the subject, but you mentioned COP in your article. Now, after buying the "Jan $70 puts for $2.25 (now $2.45)", you have already realized an almost 9% gain. My question is, how can you sell these at a gain, without being assigned? ie. what if the buyer, when you choose to sell these calls, wants to buy the stock at that price? will you have to buy COP in the market and sell to him? I'm curious how it works, as if I was in that position, and I bought 10 contracts, I wouldn't be able to come up with the $75,000 ( or whatever the prevailing market price was) to buy, and then sell to the buyer of my calls. Can you explain? I hope you have a bit of patience for a newcomer.
      Thanks!       Dec 09 02:47 PM
    • 3 Reasons Why I Bought ConocoPhillips [view article]
      Hi Elias.

      Very nice analysis, and I agree with you totally on COP. I had bought at 57.50, and recently increased my holdings at 69.25. They have recently finished their purchase in Russian giant Lukoil, and I think the market will sooner or later wake up to it's historically low P/E and we should get a nice gain here. I'm selling at 75-76, and going very big, very long CN Rail. Your thoughts?       Dec 08 08:11 PM
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