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I use option software for other purposes, but certain facts remain the same as
far as strategies are concerned. If you are looking for option valuations or
volatility there are 2 excellent sites on the web. One is optionsanalysis.com
and the other is ivolatility .com. Ira
sptrader wrote:
> Ira: do you use any options software to help determine the spread to use ?
> Steve
> ----- Original Message -----
> From: "Ira Tunik" <ist@xxxxxx>
> To: <realtraders@xxxxxxxxxxx>
> Sent: Monday, January 15, 2001 12:35 PM
> Subject: Re: [RT] Options question (buy both a bull and bear spread)
>
> > There seems to be the opinion out there that there is some magic in
> > options. A secret, that if it was only known, would be all things to
> > all people. I received another e mail from a guy named Crow who is once
> > again recommending the sale of naked puts as the answer to untold
> > wealth. Prosper, there are dozens of answers to your question. I will
> > give one that I just got through using. I had a buy signal on a stock.
> > With that I also had a target price. when I reached my first price
> > objective on the way to that target I sold the call at the strike price
> > just above my target price. When I reached the target price I bought
> > the put at that strike price to create the conversion and lock in the
> > profit on that trade. Yes I did give up some profit potential, but now
> > the money was in my pocket. I also Bought in the call that I had sold
> > which was for the near month and sold the call for the next month out to
> > increase my profit potential. I sold the time spread. Time spreads are
> > greatest at the strike price. If the price retraces, as I believe that
> > it will, then I will have increased my profit potential in the call
> > area. When I have my next buy signal, I liquidate the put, hopefully at
> > a profit, look at my next target and adjust my call position
> > accordingly. this is just one of hundreds of ways you can utilize
> > options. Ira
> >
> > Prosper wrote:
> >
> > > Hi I have been thinking about Dom's suggestion. Seems that this idea
> > > may be a good one. How would a person manage the position after
> > > entering it, for example if the security goes no place but sideways.
> > > Or if it breaks out stronly one way or the other. Or if there is
> > > extreem volatility like the spoos have experienced over the last
> > > year. Thanks for you input and thanks to Dom for suggesting this.
> > >
> > > Prosper
> > >
> > > --- In realtraders@xxxxxxxxxxx, "dom perrino" <domenick@xxxx> wrote:
> > > > I beleive that's a vertical spread Something I suggest you might
> > > toss around
> > > > that would be more conservative is to consider a bull spread and a
> > > bear
> > > > spread at the same time(referred to as a box spread). In your
> > > example you
> > > > would sell one 106 call and sell one 106 put. You would also buy
> > > one 105 put
> > > > and buy one 107 call. . You have limited risk/limited reward,
> > > provided you
> > > > don't leg out of the bull or bear spread seperately.This is based
> > > on my
> > > > knowledge as applicable to stocks. I have not traded futures in a
> > > few years
> > > > If it works differently on futures someone will correct. There are
> > > numerous
> > > > strategies regarding options, some of which are very complex as
> > > seen here on
> > > > recent discussions..
> > > > Happy Holidays
> > > > Dom
> > > > ----- Original Message -----
> > > > From: "Prosper" <brente@xxxx>
> > > > To: "Real Traders" <realtraders@xxxxxxxxxxx>
> > > > Sent: Wednesday, December 20, 2000 10:34 PM
> > > > Subject: [RT] Options question for Ira and other options experts.
> > > >
> > > >
> > > > > Hi,
> > > > >
> > > > > I was thinking about an option play that would require that you
> > > buy one,
> > > > at
> > > > > the money put 3 to 6 months out. Then you buy 2 calls out of the
> > > money by
> > > > > two strikes. Or vise versa (buying a call and 2 puts). Example,
> > > buy 1 June
> > > > > 106 T-Bond call and buy 2 June 102 T-Bond puts.
> > > > >
> > > > > I don't know if there is a name for this kind of trade. I would
> > > like to
> > > > hear
> > > > > some of the pros and cons for this idea.
> > > > >
> > > > > Thanks,
> > > > >
> > > > > Prosper
> > > > >
> > > > >
> > > > >
> > > > > To unsubscribe from this group, send an email to:
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> > > > >
> > > > >
> > > > >
> > > > >
> > >
> > > To unsubscribe from this group, send an email to:
> > > realtraders-unsubscribe@xxxxxxxxxxx
> >
> >
> > To unsubscribe from this group, send an email to:
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> >
> >
> >
>
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