LOL. Were you on the yahoo option BBs circa 2007 when it was a circus full of a monkey ???
Owning the stock protects the broker not the investor who bears all of the downside risk. Unlimited losses? Have you seen any stocks go to...
If one buys the stock for $100 and has a target sale price of $110 then selling the $110 covered call provides some premium while waiting for the...
Theory and option greek mumbo jumbo? LOL. People tend to sell OTM covered calls (see OP's question) The position is delta long It earns money...
Net delta of CC is positive so it is a bullish position. Perhaps less so than outright stock but still bullish.
Maybe this involved Viagra eye drops? (makes it look bigger : )
All of this is a trade off decision. ITM options cost more and risk more to the downside but participate in the upside sooner (higher...
The best way to lock in a gain on an appreciated CC position depends on what the underlying (XYZ) does, going forward. Yeh I know, kind of a...
It's not the amount of premium remaining in a covered call. It's a question of whether the bid trades below parity, or not. Do you understand...
If you are not assigned early then you get the dividend.
Saltynuts, It's a conversion not a collar. Yes, he will make 22 cents on the it. He doesn't pay to finance the transaction. He gives up the...
You're short the $90 call. Assignment occurs if MSFT > $90 at expiration. That means that the $90 put will be worthless. How will you close...
Unless you included commissions, conversion price is off. Regardless, if MSFT is ITM at ex-div, you are not likely to get the dividend --> early...
How long the option has until expiration has nothing to do with a wash sale. Booking a loss does not create a wash sale. Buying "substantially...
I would have gone with something more recognizable such as Robert Redford in "Three Legs of a Condor"
As I said, "Rising IV will offset *SOME* of the decay and price movement *MAY* make the combo profitable even before the EA." If that rising IV...
Long straddles and strangles for an EA are really problematic because you are buying two legs that are going to collapse when IV contracts plus...
If you monitor IV, the general pattern is that it increases more dramatically in the two days before the EA. A small amount peak the day before....
It's the short options you have to worry about not the long ones.
I used to trade a lot of earnings announcements. In general, I found that the highest IV was earlier in the day before the EA. What I looked for...
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