Comments on: VIP Options Assignment http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/ Investing in Stocks Through Options Thu, 08 Jan 2009 20:58:49 +0000 http://wordpress.org/?v=2.6 By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4191 Alex Fotopoulos Sat, 16 Aug 2008 11:04:53 +0000 http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4191 Yep, understood your point. Was trying to say I do not want more exposure than I already have, including any other option exposure. If I spend too much time on VIP my other positions will suffer a lack of attention since I have a lack of time with a full time job and family that both need attention too. I try to keep my positions more basic. Yep, understood your point. Was trying to say I do not want more exposure than I already have, including any other option exposure. If I spend too much time on VIP my other positions will suffer a lack of attention since I have a lack of time with a full time job and family that both need attention too. I try to keep my positions more basic.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4190 Options Strategery Sat, 16 Aug 2008 01:27:08 +0000 http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4190 You may be in for $10k and having position limits is good. That isn't necessarily correlated with your delta. You've got covered calls reducing your delta. You could always add some out-of-the-money bull put spreads to add delta for small amounts of incremental risk. Not saying you should do that as strict position limits is good. But rather pointing out the difference. You may be in for $10k and having position limits is good.

That isn’t necessarily correlated with your delta. You’ve got covered calls reducing your delta. You could always add some out-of-the-money bull put spreads to add delta for small amounts of incremental risk.

Not saying you should do that as strict position limits is good. But rather pointing out the difference.

]]> By: Alex Fotopoulos http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4172 Alex Fotopoulos Thu, 14 Aug 2008 23:04:48 +0000 http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4172 I'm in for $10k on VIP now (10% of my account value), I hesitate to take on more positive delta until the perceived risk of a gov't takeover of VIP decreases. I’m in for $10k on VIP now (10% of my account value), I hesitate to take on more positive delta until the perceived risk of a gov’t takeover of VIP decreases.

]]> By: Options Strategery http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4171 Options Strategery Thu, 14 Aug 2008 21:31:52 +0000 http://mytradersjournal.com/stock-options/2008/08/14/vip-options-assignment/#comment-4171 Be very careful with this line of thinking. The profits you make on good trades will be small but consistent. It's the black swans like NVDA that will kill your overall return. There's very little you can do to avoid getting hit for the occasional disasters. It's the risk you take for naked puts (vs. put spread). Russia and Georgia can't fight forever. I'd look at taking some additional positive delta. Be very careful with this line of thinking. The profits you make on good trades will be small but consistent. It’s the black swans like NVDA that will kill your overall return. There’s very little you can do to avoid getting hit for the occasional disasters. It’s the risk you take for naked puts (vs. put spread).

Russia and Georgia can’t fight forever. I’d look at taking some additional positive delta.

]]>