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<FONT face=Arial color=#0000ff
size=2>Phfftttt.
<FONT face=Arial color=#0000ff
size=2>
$3,000
to learn how to trade a straddle in front of an earnings
announcement?
<FONT face=Arial color=#0000ff
size=2>
I
think you'd be better off buying a copy of McMillan's strategies
book.
<FONT face=Arial color=#0000ff
size=2>
IMHO
of course.
-
John
<FONT face=Tahoma
size=2>-----Original Message-----From: Merkley, Steve
[mailto:smerkley@xxxxxxx]Sent: Tuesday, January 16, 2001 12:10
PMTo: 'realtraders@xxxxxxxxxxx'Subject: RE: [RT] Re:
Options question (buy both a bull and bear spread)
Could someone tell the group about the best options
book they ever read. An options book that gave option strategies that
the author actually used. I went to a 3 hr seminar with quantum vision
and they want me to spend $3,000 to go to their bootcamp to learn how to trade
option spreads. The example that they were real hi on, was watch for a
company that is going to announce earnings and about 3 weeks before the
announcement, buy calls and buy puts at the same time and hope the price goes
high or low enough to make you some money. Does anyone have experience
with Quantum Vision? Thanks for the info.
Steve Merkley
-----Original
Message----- From:
Prosper [SMTP:brente@xxxxxxxxxxxx] <FONT face=Arial
size=2>Sent: Monday, January
15, 2001 5:54 PM <FONT face=Arial
size=2>To: <FONT face=Arial
size=2>realtraders@xxxxxxxxxxx <FONT face=Arial
size=2>Subject: <FONT
face=Arial size=2>[RT] Re: Options question (buy both a bull and bear
spread)
Thanks for your help Dom.
So I can understand your post better could you
state what you think the order would
actually be. IE buy one 106 call and sell a call at <FONT
face=Arial size=2>___ and then buy a 106 put and sell a put at ___.
Thanks
Prosper
--- In realtraders@xxxxxxxxxxx, "Dom Perrino"
<domenick@xxxx> wrote: > Options
are very useful instruments. They can be used alone e.g. <FONT
face=Arial size=2>buy calls > or puts;
in conjunction with stock ,futures, or other entities the <FONT
face=Arial size=2>can be > used to
protect profits, limit losses and many other strategies. I <FONT
face=Arial size=2>strongly > recommend
reading up on options because of the many uses they can <FONT
face=Arial size=2>be put to. >
Regarding the particular example first bear in might that would
have <FONT face=Arial
size=2>> resulted in a credit to your account since the sale
of the two options <FONT
face=Arial size=2>> would be greater than the purchase of the other two.
If there a sideway move <FONT
face=Arial size=2>> let all options expire and you keep the original
credit . If a move above <FONT
face=Arial size=2>> 107 or below 105 you can sell all and the gain
on the call and/or put <FONT
face=Arial size=2>> should be greater than the loss on any diferrential
move on the put and call <FONT
face=Arial size=2>> sold. Another thing you can do is to leg out the two
winning options on a <FONT
face=Arial size=2>> swing up and leg out the other two on a downswing. I
do not recommend this <FONT
face=Arial size=2>> because it will leave you with one uncovered option.
There are many creative <FONT
face=Arial size=2>> ways to use options from the simple to the
complex . > P.S. Ira's
post gave an example of how option use come to you
as your <FONT face=Arial
size=2>> need for them arises. >
Dom
----- Original > Message -----
> From: "Prosper " <brente@xxxx>
> To: <realtraders@xxxxxxxxxxx>
> Sent: Monday, January 15, 2001 1:34
PM > Subject: [RT] Options question
(buy both a bull and bear spread) >
> <FONT face=Arial
size=2>> > Hi I have been thinking about Dom's suggestion. Seems that
this idea <FONT face=Arial
size=2>> > may be a good one. How would a person manage the position
after > > entering it, for example
if the security goes no place but <FONT face=Arial
size=2>sideways. > > Or if it
breaks out stronly one way or the other. Or if there is <FONT
face=Arial size=2>> > extreem volatility like the spoos have
experienced over the last > > year.
Thanks for you input and thanks to Dom for suggesting this. <FONT
face=Arial size=2>> > > >
Prosper > > <FONT
face=Arial size=2>> > --- 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 <FONT
face=Arial size=2>and a > >
bear > > > spread at the same
time(referred to as a box spread). In your <FONT face=Arial
size=2>> > example you > >
> would sell one 106 call and sell one 106 put. You would also buy
> > one 105 put <FONT
face=Arial size=2>> > > 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 <FONT face=Arial
size=2>based > > on my
> > > knowledge as applicable to
stocks. I have not traded futures in <FONT face=Arial
size=2>a > > few years
> > > If it works differently on
futures someone will correct. There <FONT face=Arial
size=2>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> <FONT face=Arial
size=2>> > > Sent: Wednesday, December 20, 2000 10:34 PM
> > > Subject: [RT] Options question
for Ira and other options experts.
> > > <FONT face=Arial
size=2>> > > > > > >
Hi, > > > > <FONT
face=Arial size=2>> > > > I was thinking about an option play
that would require that you
> > buy one, <FONT face=Arial
size=2>> > > at > > >
> the money put 3 to 6 months out. Then you buy 2 calls out of
the <FONT face=Arial
size=2>> > money by > > >
> two strikes. Or vise versa (buying a call and 2 puts). <FONT
face=Arial size=2>Example, > > buy
1 June > > > > 106 T-Bond
call and buy 2 June 102 T-Bond puts. <FONT face=Arial
size=2>> > > > > > >
> I don't know if there is a name for this kind of trade. I
would <FONT face=Arial
size=2>> > like to > > >
hear > > > > some of the pros
and cons for this idea. > > >
> > > > > Thanks,
> > > > <FONT face=Arial
size=2>> > > > Prosper >
> > > > > > >
> > > > <FONT face=Arial
size=2>> > > > To unsubscribe from this group, send an email
to: > > > >
realtraders-unsubscribe@xxxxxxxxxxx >
> > > > > > >
> > > > <FONT face=Arial
size=2>> > > > >
> > > <FONT
face=Arial size=2>> > To unsubscribe from this group, send an email
to: > >
realtraders-unsubscribe@xxxxxxxxxxx >
> > > <FONT
face=Arial size=2>> > >
>
To unsubscribe from this group, send an email
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