Comments on: Selling Calls on NYX and FWLT http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/ Investing in Stocks Through Options Thu, 20 Nov 2008 11:28:38 +0000 http://wordpress.org/?v=2.6 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2568 Alex Fotopoulos Sun, 16 Mar 2008 12:38:58 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2568 That's the side I'm on. It all comes down to a bet on if you think the underlying will climb any more. I see us at a short-term turning point and expect a better week next week. Options expiration can make all of that uncertain though. That’s the side I’m on. It all comes down to a bet on if you think the underlying will climb any more. I see us at a short-term turning point and expect a better week next week. Options expiration can make all of that uncertain though.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2558 Options Strategery Sun, 16 Mar 2008 00:31:26 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2558 My model says that rolling now vs. writing at expiration is pretty much the same if the price stays the same. If the price goes up but doesn't hit 22.50, writing after expiration is much better. My model says that rolling now vs. writing at expiration is pretty much the same if the price stays the same. If the price goes up but doesn’t hit 22.50, writing after expiration is much better.

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2543 Alex Fotopoulos Fri, 14 Mar 2008 13:50:55 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2543 True, but I'd rather save that $40 (4 contracts) + commissions than mess with that now, especially with NVDA back under $19 this morning. I see the point that I could take in more premiums a week early, but almost never roll my options. I don't know that I'd make that much more rather than waiting it out and letting it expire worthless though. True, but I’d rather save that $40 (4 contracts) + commissions than mess with that now, especially with NVDA back under $19 this morning. I see the point that I could take in more premiums a week early, but almost never roll my options. I don’t know that I’d make that much more rather than waiting it out and letting it expire worthless though.

]]> By: mule65 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2542 mule65 Fri, 14 Mar 2008 13:42:41 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2542 I meant the premiums on NVDA Mar 22.5 calls are almost dead. Ask is 0.10 so there isn't much to be made holding them for another week. I meant the premiums on NVDA Mar 22.5 calls are almost dead. Ask is 0.10 so there isn’t much to be made holding them for another week.

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2540 Alex Fotopoulos Fri, 14 Mar 2008 12:07:37 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2540 "Almost dead" on NVDA is a broad statement. With six more trading days left, it could climb above 22.50 still. I'll be happy to take more gain from today's price if it does. I'm becoming less and less of a fan of covered calls (I need a longer post for this). Basically the ups and downs of the underlying create more volatility within my portfolio than I like. I'm ready to be done with NVDA for a little while. “Almost dead” on NVDA is a broad statement. With six more trading days left, it could climb above 22.50 still. I’ll be happy to take more gain from today’s price if it does.
I’m becoming less and less of a fan of covered calls (I need a longer post for this). Basically the ups and downs of the underlying create more volatility within my portfolio than I like. I’m ready to be done with NVDA for a little while.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2535 Options Strategery Fri, 14 Mar 2008 09:58:04 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2535 Rolling the Mar 22.50 to Apr 20.00 is the same as taking assignment and selling the Apr 20.00 call. Single leg trades execute better (i.e. I can split the bid-ask). Correct me if I am wrong but I think both are very close. I usually roll the put though. Rolling the Mar 22.50 to Apr 20.00 is the same as taking assignment and selling the Apr 20.00 call. Single leg trades execute better (i.e. I can split the bid-ask). Correct me if I am wrong but I think both are very close. I usually roll the put though.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2532 Options Strategery Fri, 14 Mar 2008 06:10:07 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2532 I sold them during the middle of the day so I got some of the gain but not all of it. I know how you feel, I sold a bunch of calls yesterday that were near the bottom. Rolling the Mar 22.50 Put to an Apr 20.00 Put is the same as writing a Apr 20 call on the stock. Rolling requires two trades while selling a call requires an option assignment (so rolling is a little bit cheaper). However, rolling forces me to eat one additional bid-ask spread so I sold the call. As far as I know, when I do a rollout on Ameritrade, they do not get me the midpoint between bid and ask. On the other hand, when I sell the call, I split the bid-ask and put my order right in the middle. Either way, getting out while the getting is good. Another bonus is that this gives me an month more on the holding period and will get me to LT cap gains faster if I hold NVDA for a while. I sold them during the middle of the day so I got some of the gain but not all of it. I know how you feel, I sold a bunch of calls yesterday that were near the bottom.

Rolling the Mar 22.50 Put to an Apr 20.00 Put is the same as writing a Apr 20 call on the stock. Rolling requires two trades while selling a call requires an option assignment (so rolling is a little bit cheaper). However, rolling forces me to eat one additional bid-ask spread so I sold the call. As far as I know, when I do a rollout on Ameritrade, they do not get me the midpoint between bid and ask. On the other hand, when I sell the call, I split the bid-ask and put my order right in the middle.

Either way, getting out while the getting is good.

Another bonus is that this gives me an month more on the holding period and will get me to LT cap gains faster if I hold NVDA for a while.

]]> By: mule65 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2529 mule65 Fri, 14 Mar 2008 00:37:34 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2529 Why not roll the almost dead NVDA 22.50's to April 20.00? Why not roll the almost dead NVDA 22.50’s to April 20.00?

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2525 Alex Fotopoulos Thu, 13 Mar 2008 23:27:59 +0000 http://mytradersjournal.com/stock-options/2008/03/13/selling-calls-on-nyx-and-fwlt/#comment-2525 Did you sell them early today or late, ie when it was down or up? NVDA made my day today adding $944 back on paper. I'm tempted to buy my calls back on it to try to make more on it, but I know I should let it go if it goes above 20 and 22.50, my strikes. Did you notice I sold my FWLT and NYX calls near the bottom? At least I sold FWLT far OTM. If I see NYX going farther north I might sell another naked put at 60. That'll bring my avg cost way down if assigned. Did you sell them early today or late, ie when it was down or up? NVDA made my day today adding $944 back on paper. I’m tempted to buy my calls back on it to try to make more on it, but I know I should let it go if it goes above 20 and 22.50, my strikes.
Did you notice I sold my FWLT and NYX calls near the bottom? At least I sold FWLT far OTM. If I see NYX going farther north I might sell another naked put at 60. That’ll bring my avg cost way down if assigned.

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