Re: Handling Large Losses


Jun 17, 2013

 


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#10383 Jun 18, 2013

DJ, You said,

"I use longer term support levels (for selling puts) and place trades with enough time premium to make the "bets" a bit more safe with lower premiums and lower delta's (-.10, or lower, for puts). Even then, with Bernanke effected volatility, I could still see a sold put this week get pressured for instant paper losses, so I have puts sitting in the SPX at over 100 points below today's opening trades and still brought in 55 cents last week. They are in natural decay and I will either hold them no matter what or close them early at 10 to 15 cents or better if we pop today." I have been looking at the idea to place trades further out and would like to ask how far out you go? 2 months,3 months, more? Can you recommend a website to learn more about time decay ?

Thanks, Bob



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#10416 Jun 19, 2013

Thanks.  From: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com [mailto:CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com] On Behalf Of djohnsonhotSent: Tuesday, June 18, 2013 9:34 PMTo: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.comSubject: [CoveredCalls-NakedPuts_OptionStrategies] Re: Handling Large Losses



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#10418 Jun 19, 2013

I have a comments on tactic 1. If one wants a purposeful assignment, assuming that the stock is on the rise, I would think that you would sell puts slightly ITM. This tactic provides a greater assurance that you will be assigned. If on the other hand the stock begins to go down, then not  only you will be subject to assignment, but may end up DITM, which is not a desirable position to be in.  Manohar  From: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com [mailto:CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com] On Behalf Of djohnsonhotSent: Monday, June 17, 2013 10:46 AMTo: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.comSubject: [CoveredCalls-NakedPuts_OptionStrategies] Handling Large Losses



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#10441 Jun 20, 2013

Thanks Teddi.  I did find the link helpful.Gene  From: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com [mailto:CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.com] On Behalf Of Teddi KnightSent: Wednesday, June 19, 2013 12:46 PMTo: CoveredCalls-NakedPuts_OptionStrategies@yahoogroups.comSubject: RE: [CoveredCalls-NakedPuts_OptionStrategies] Re: Handling Large Losses


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