Entries Tagged as 'Options'

Covered calls: Getting out early

November 11th, 2009 · 2 Comments

One of the things I’ve recently started to do with my covered call trades is to try and exit the position early by trading a little bit of the maximum profit for a reduced risk of losing money. Between Sept and Oct expiration, I attempted that by setting a limit credit order for each of my positions. But this month, I’m trying a limit BTC order for just the call option itself.

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Tags: Options

AIG long put example plus thought process

October 21st, 2009 · No Comments

In yesterday’s post, I wrote a little bit about what I’ve learned while researching an options strategy of trading long puts against high volatility equities. Today, I’m providing a concrete example of the strategy and my thought processes along the way.

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Tags: Options · Trades

Some thoughts on trading long puts

October 20th, 2009 · No Comments

As I’ve recently posted, I’ve expanded my trading strategies to include using long puts on range-bound equities exhibiting high volatility. Even though I’ve only completed two round-trip executions of this strategy, both using AIG, I’ve already come up with a few notes that I want to record for the future.

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Tags: Options

October ’09 option expiration summary

October 18th, 2009 · 1 Comment

October’s option expiration was this past weekend, and like last month, we had three covered calls in play that ended with this month’s expiration. Two of those got assigned (AIG and Intel) and one simply expired (Eastman Kodak), thus we did reasonably well in matching our maximum profit. But before I provide that summary, let me digress with a little summary of what we’ve learned so far in trading covered calls.

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(EK) Eastman Kodak Company Runs Faster
Eastman Kodak Co. (EK)
Read more on Eastman Kodak Company at Wikinvest

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Tags: Options · Trades

Learning to apply long puts using AIG

October 8th, 2009 · No Comments

So I’ve been watching AIG pretty closely given my current in-play covered call trade, and I’ve noticed that the daily highs and lows can be pretty large swings. I’ve also noticed that, over the last few days, it seems to be swinging through the same range of prices over and over again. Having just read about trading puts, I decided to dip my toe in the water by doing a long put with AIG.

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Tags: Options · Trades

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