Which call did you write ? Jan 19 2013 $30 ?
You are right, it went down significantly to .8683. It was 1 monday and 0 .98 last night when I placed the limit order. But market went down. It...
My limit order was $69.30 . Virtual execution was at 9:31:15 . SPY at $123.85. Dec 2013 $70 call at $54.86. Net : $68.99 . So that's actually...
OK, this is trading hours now. As I write, SPY is at 122.02 . Dec 2013 $70 call is at 53.23 Bid / $54.04 ask. I put in a virtual buy-write...
Yeah. I haven't been awake during market hours lately. Will try tomorrow...
Rationalize, True. But if I hold the call to expiration and, as I believe, it expires in the money (SPY > $70), then it doesn't matter. I...
Rationalize, What interest would I be foregoing ? The 1%/year I would get in my FDIC insured accounts otherwise ? It doesn't look like this...
Interesting. In the case of SPY, dividend isn't high. So getting assigned is actually even better ;) True. But it goes both ways. If SPY moves...
Yes put is greater than 0. In the $5 range. As of right now SPY is at 124.08. The Dec23 $70 call is $54.62 bid / $55.48 ask . The spread...
Rationalize, Thanks ! Well, those were the prices I was getting from Optionsxpress virtual trading last night when I wrote the post. I...
Thanks. I can certainly see the uncertainty around dividends on individual dividend-paying stocks. There would be more speculation there. Less so...
I would never be short the stock. No margin for me. The idea was to be long the stock and write the covered call at the same time. I would use a...
total_keops, Thanks, that makes sense. But just how much will it decrease ? In my example, for a 2 year LEAPS DITM option, there would still...
I was reading the strategy described at http://www.theoptionsguide.com/dividend-capture-using-covered-calls.aspx . It goes like this : 1)...
For the covered call, getting assigned isn't so bad if your strike is above the price of the UL. It's not a realized loss, but it is a lost...
Thanks. Interesting data point. Was that for puts or calls, or for both ? What was the duration involved ?
spindr0, Thanks. Let's assume there is no pending dividend before the option expiration to take that out of the equation. Has anyone studied...
Yes, I rounded up the stock price by mistake, was too lazy yesterday. I didn't count the exact number of dividends either, I had calculated the...
spndr0, Thanks. I won't use margin though, just cash account. And interest collected on put premiums would be very close to zero at most...
How so? I would buy stock for $30 now. Pay $3.30 for the puts. Upfront investment is $33.3. But stock has moved down to $25 or below. Stock +...
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