S*******i
发帖数: 2018 | 1 of Apr 2014 $3.5 call at 0.55.
I bet the company will not drop significantly from here. | o********n
发帖数: 1329 | 2 call or put? what is the strike price?
【在 S*******i 的大作中提到】
: of Apr 2014 $3.5 call at 0.55.
: I bet the company will not drop significantly from here.
| S*******i
发帖数: 2018 | 3 call, $3.5 strike.
Sorry. Just fixed my original post.
I am not greedy. Just bet it will not drop. If it stays here, the profit
will be around $5400.
【在 o********n 的大作中提到】
: call or put? what is the strike price?
| S*******i
发帖数: 2018 | 4 I was too conservative on this one.
Have to wait till next April.
【在 S*******i 的大作中提到】
: call, $3.5 strike.
: Sorry. Just fixed my original post.
: I am not greedy. Just bet it will not drop. If it stays here, the profit
: will be around $5400.
| o********n
发帖数: 1329 | 5 yes, you will learn proper way of doing option trading.
First of all, buying stocks and selling covered calls is equivalent to
selling puts.
Selling puts is my favorite.
Secondly, before selling options, calls or puts, check the implied
volatility of the options, and compare it to the expected volatility of the
stock price. You probably sold the option cheap, i.e. when the implied
volatility was not that high.
Use http://www.ivolatility.com/ 's free service to find out Implied Volatility and stock price volatility
【在 S*******i 的大作中提到】
: I was too conservative on this one.
: Have to wait till next April.
| S*******i
发帖数: 2018 | 6 Thanks. But I will never write naked put.
The premium of my Renn call is actually pretty good. It was an OK trade in
my opinion because I bought the stock exactly at the bottom. I do not really
do option trading for quick profit. My current strategy is to find good
covered call candidates to get a return for about 30% a year with limited
downside.
the
【在 o********n 的大作中提到】
: yes, you will learn proper way of doing option trading.
: First of all, buying stocks and selling covered calls is equivalent to
: selling puts.
: Selling puts is my favorite.
: Secondly, before selling options, calls or puts, check the implied
: volatility of the options, and compare it to the expected volatility of the
: stock price. You probably sold the option cheap, i.e. when the implied
: volatility was not that high.
: Use http://www.ivolatility.com/ 's free service to find out Implied Volatility and stock price volatility
| S*******i
发帖数: 2018 | 7 BTW, I do not often touch stocks of which the price is less than $5 per
share.
The reason why I got into RENN with a covered call is because the downside
is really small given its cash position. I think its stock is as safe as a
blue chip (at $3.4) but its option volitility is high.
really
【在 S*******i 的大作中提到】
: Thanks. But I will never write naked put.
: The premium of my Renn call is actually pretty good. It was an OK trade in
: my opinion because I bought the stock exactly at the bottom. I do not really
: do option trading for quick profit. My current strategy is to find good
: covered call candidates to get a return for about 30% a year with limited
: downside.
:
: the
| o********n
发帖数: 1329 | 8 Yes, I agree.
I am happy for you. (I wish you could have made more money on RENN. But as
long as you are satisfied, I have no complain. :-) )
On the other hand, technically, buying stocks and selling covered calls is
exactly same as writing puts. i.e, both strategies have exactly same risk/
rewards. You can run the numbers to verify it.
really
【在 S*******i 的大作中提到】
: Thanks. But I will never write naked put.
: The premium of my Renn call is actually pretty good. It was an OK trade in
: my opinion because I bought the stock exactly at the bottom. I do not really
: do option trading for quick profit. My current strategy is to find good
: covered call candidates to get a return for about 30% a year with limited
: downside.
:
: the
| S*******i
发帖数: 2018 | 9 In theory, yes if you include the interest of the bond.
For execution, it is definitely not.
【在 o********n 的大作中提到】
: Yes, I agree.
: I am happy for you. (I wish you could have made more money on RENN. But as
: long as you are satisfied, I have no complain. :-) )
: On the other hand, technically, buying stocks and selling covered calls is
: exactly same as writing puts. i.e, both strategies have exactly same risk/
: rewards. You can run the numbers to verify it.
:
: really
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