Phantasmix Stock Blog » • Options http://www.phantasmix.com Trading stocks and options -- contact @ phantasmix.com Mon, 12 Jul 2010 03:41:15 +0000 http://wordpress.org/?v=2.8 en hourly 1 $$ New Format for Option Symbols http://www.phantasmix.com/new-format-for-option-symbols.html http://www.phantasmix.com/new-format-for-option-symbols.html#comments Fri, 22 Jan 2010 23:10:33 +0000 Phantasmix http://www.phantasmix.com/?p=3580 Effective Monday January 25th, 2010 option symbols will change to a new format.

Is this for everyone or just my brokerage?

Looks confusing.

options

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]]> http://www.phantasmix.com/new-format-for-option-symbols.html/feed 2 April 28th Put-to-Call Ratio ($CPC) http://www.phantasmix.com/april-28th-put-to-call-ratio-cpc.html http://www.phantasmix.com/april-28th-put-to-call-ratio-cpc.html#comments Tue, 28 Apr 2009 19:36:07 +0000 Phantasmix http://www.phantasmix.com/?p=2516 Traders just can’t make up their collective mind! Call-to-put ratio oscillation in the last 2-3 weeks is indicative of the general indecision in the markets.

Click to enlarge
apr28_cpc

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]]> http://www.phantasmix.com/april-28th-put-to-call-ratio-cpc.html/feed 0 Schaeffer’s Buy-Write Plus http://www.phantasmix.com/schaeffers-buy-write-plus.html http://www.phantasmix.com/schaeffers-buy-write-plus.html#comments Tue, 24 Mar 2009 17:04:11 +0000 Phantasmix http://www.phantasmix.com/?p=2010 I’m testing this strategy, and using (BGU: 47.30 -1.52%) as my guinea pig.

BGU — 100 shares, bought @ $23.46
BGU APR $25 CALL — sold @ $1.60
BGU APR $30 CALL — bought @ $0.38

In short, here’s what this gives you:
if you expect the stock to move up but want to lock in some profits, sell an OTM call, and buy a cheaper one even further OTM to capture the potential upside move in the underlying in case yours gets called out.

I’m curious to see how it works out versus simply holding the stock. The experiment should conclude by April options expiration, and I’ll post an update.

Pros:

  • Lets stocks work for you by generating option income
  • Significantly better upside potential than standard buy-write
  • Should enhance overall returns under most market conditions

Cons:

  • Lower standstill returns than traditional buy-write
  • Additional commissions
  • Lower income generation means less protection against prolonged downtrend by the stock (i.e., higher cost basis)

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]]> http://www.phantasmix.com/schaeffers-buy-write-plus.html/feed 0 Sold a Covered Call http://www.phantasmix.com/sold-a-covered-call.html http://www.phantasmix.com/sold-a-covered-call.html#comments Tue, 16 Dec 2008 14:43:00 +0000 Phantasmix http://www.phantasmix.com/?p=1572 I sold my first ever option! 1 contract, covered call on SSO.

Jan’09 with strike $23. Got $4.10 for it, which means I net $212.05 after commission.

Questrade options commissions are $9.95 + $1 per contract.

If SSO is above $23 in January, my shares will be called out. If not – I keep them. I want them to get called out, but won’t worry either way.

That was partly my intention in buying SSO – to try options. Just 100 shares, not expensive, but somewhat liquid.

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