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Thomsett

Thomsett
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  • Three Ways To Use Fundamentals To Pick Stocks [View instapost]
    Combining fundamental and technical signals gives you a broader analytical view.
    Oct 7 09:09 AM | Likes Like |Link to Comment
  • Does option trading affect stock prices? [View instapost]
    There may be an effect between strike and stock price, but only close to expiration. In the larger picture, I do not believe that options activity affects stock prices, however. It is more likely that volatility in stock prices affects implied volatility in options; however, close to expiration, this can change briefly.
    Sep 30 08:47 AM | Likes Like |Link to Comment
  • 4 Pitfalls Of The Forward Roll [View instapost]
    Re; "4 Pitfalls of the Forward Roll" -- I apologize, the link has been fixed.
    Jul 14 08:08 AM | Likes Like |Link to Comment
  • Dividend Dates To Remember [View instapost]
    Dividend dates to remember
    Jul 1 08:35 AM | Likes Like |Link to Comment
  • Short Strangle, Worth Consideration [View instapost]
    Yes, "call" and "put" were reversed, thanks for catching this.
    Apr 12 12:51 PM | Likes Like |Link to Comment
  • Protective Collars And When To Use Them [View instapost]
    No, actually I focus on very short-term (one month or less) OTM calls, desiring to avoid exercise. I can afford to be patient since the put's lifespan is so long. The worst outcome would be exercise of the call or needing to continuously roll the call forward. So I will be more likely to close the call if the price begins approaching the strike. The ideal situation is to average one profitable call per month; for that I prefer one to two points OTM.
    Mar 30 08:38 AM | Likes Like |Link to Comment
  • Protective Collars And When To Use Them [View instapost]
    Yes, although I tend to favor installment collars, longer-term but more easily found. In these I buy 100 shares and sell a very short-term ITM call; and buy a long-term put (6 months or longer). I favor this strategy for companies whose dividend is higher than average. The idea is that the combination of repeated short call premium and dividends will eventually pay for the put and create overall net profits; meanwhile, the put freezes market risk on the stock at the put's premium. I've done several of these with great success. - M
    Mar 29 09:38 AM | Likes Like |Link to Comment
  • Qualified And Unqualified Covered Calls [View instapost]
    Thank you. I think options traders need to be aware of this tax rule and the many others that affect them. - Michael
    Mar 24 08:52 AM | Likes Like |Link to Comment
  • Installment Collar – Variation On The Dividend Collar [View instapost]
    Yes,
    I find these often. I publish a weekly dividend collar watch list, and this week's edition (coming out on my website Monday (ThomsettOptions.com) includes four companies that work with ex-dividends all coming up this week - and all yielding double-digit returns. My calculations were based on Friday's closing prices. - Michael
    Mar 2 09:04 AM | Likes Like |Link to Comment
  • 7 Guidelines For Covered Call Writing [View instapost]
    Your observations are spot on. It is not for everyone. I personally like conservative options strategies, and covered calls are a favorite among the many possible ways this can be accomplished.
    Feb 1 08:32 AM | Likes Like |Link to Comment
  • A New Options Book Has Been Published [View instapost]
    This book is now available in a Kindle edition at Amazon.com
    Dec 18 09:42 PM | Likes Like |Link to Comment
  • 6 Guidelines For Covered Call Writing [View instapost]
    I agree that you can justify using an ITM strike as long as call premium is higher. But that also increases the chances of early exercise, so from a dividend strategy point of view, I would not suggest this approach (unless you plan to roll forward, in which case you tie up capital longer). But as a downside protection measure, it makes great sense. You also need to be aware of going too deep in; if you expect a long-term capital gain, that could unqualify the call and result in short-term taxation of the gain.
    Dec 8 10:11 AM | Likes Like |Link to Comment
  • Is "buy and hold" the smartest investing strategy? [View instapost]
    http://bit.ly/HFdID9
    Nov 5 08:34 AM | Likes Like |Link to Comment
  • Is "buy and hold" the smartest investing strategy? [View instapost]
    Thanks for letting me know. I was not aware of the citation. Also, thank you for your comments; the article was intended to point out a changing trend in the market that is perhaps more troubling than positive, but that remains to be seen. Again, thanks for letting me know about this. - Michael
    Nov 5 08:33 AM | Likes Like |Link to Comment
  • The Ratio Calendar Spread - Options With Creativity [View instapost]
    It might be, but also be aware of the collateral requirements for uncovered short positions. You are required to deposit 100% of the strike value if the call or put is not covered; partial cover (i.e. offsetting positions) reduces this, but the need for this collateral is easily overlooked. A valuable and free resource for all traders is the CBOE Margin Manual - download at http://bit.ly/14fJ3Hs
    Jul 30 08:34 AM | Likes Like |Link to Comment
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