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All in all I
think it's a nice strat for the current low volatile markets........just
wondering how lousy it may get if that VIX starts
climbing....
and premiums
begin to soar and girate.
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid">
<FONT face=Tahoma
size=2>-----Original Message-----From: profitok
[mailto:profitok@xxxxxxxxxxxxx]Sent: Sunday, April 07, 2002 1:58
PMTo: realtraders@xxxxxxxxxxxxxxxCc:
gannsghost@xxxxxxxxxxxxxxxSubject: Re: [RT] Re: option
update
Hello M Simms,,
You are correct,, this option position is NOT
for a major move up
however lets take an example
let just say that we close at 36 on the third
Fri. in April (highly unlikely)
we lose aprox 100 for each put as
they were bought when qqq at 35 and another 25 cents for
time premiums so 175 times 125 =$21875 loss
However the 36 call will be close to
zero
and the 35 Jan 2004 will be up
approximately 17500
so we get to collect all the 36 calls money ,,
have an increase in the leap value
and a loss in the put value
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
M.
Simms
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Sunday, April 07, 2002 9:48
AM
Subject: RE: [RT] Re: option
update
Can someone
show the profit profile for this strategy which is basically a leveraged
covered call with marriaged put protection ???
<FONT color=#0000ff
size=2>
I want to
know what would happen to the position if the QQQs take-off
northward.......would the longer-term leap make-up for the losses in the put
and call positions ?
<BLOCKQUOTE
style="PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #0000ff 2px solid">
<FONT face=Tahoma
size=2>-----Original Message-----From: Dom
[mailto:domenick@xxxxxxxxxxxx]Sent: Saturday, April 06, 2002
10:05 PMTo: realtraders@xxxxxxxxxxxxxxxSubject: Re:
[RT] Re: option update
Closed positions produce income. On the
closed positions you said you made $8575.00. If not closed it is not
income. It is a hope, a dream, a possibility, an illusion, a mind
trip.
You still have not clarified with your
one-liner. The drawdown on the April calls
of 2004 was $26750.00 at the time the
closed options generated $8575.00 in profit. You say," I am
forgetting the income from the calls sold". Once again, Were these calls
to close or open. If they were to open they do not result in P&L
until they are closed, epired, or terminated in some other manner. Using
your own words you say "on the CLOSED positions we are ahead $8575". You
fail to mention the drawdown of $26750.00. In addition you now want to
count as income proceeds of calls sold prior to their being closed
out.
nice weekend,
Dom
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, April 06, 2002 7:38
PM
Subject: Re: [RT] Re: option
update
you are forgetting the income from the calls
sold
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=domenick@xxxxxxxxxxxx
href="mailto:domenick@xxxxxxxxxxxx";>Dom
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, April 06, 2002
2:10 PM
Subject: Re: [RT] Re: option
update
Ben,
How can you be ahead $8575.00 if
the current value of the Jan. 2004 call is 6.70. 175x 6.70 is
$117250.00=current value. Cost of this entity was $144000.00 minus
$117250.00=$26750.00 drawdown. How can you accumulate money if you put
8 dollars in one pocket and you just lost 20+ in the other pocket
. Keep It simple KISS, as you like to say, so everyone who
is interested can follow clearly what you are doing. Yor posts
regarding this spread have not been clear at all. Is it possible this
is the same spread you said Guaranteed no loss, no drawdown?
Dom
<FONT face=Arial
size=2> <FONT face=Arial
size=2>
----- Original Message -----
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx
Sent: Thursday, April 04, 2002
9:28 PM
Subject: Re: [RT] Re: option
update
Now that I have time let me finish
the closing of the long 175 qavph resulted
in a LOSS of $12500
selling 175 qqqfj result in income
of $30625
and
buying protection again 175
qavqh cost $21000
current value
175 IRIAI is $120750
175 short qqqfj is worth
$28875
and long qavgh is worth $21875
on the closed positions we are ahead
$8575 in 4 week for a $133000
investment
<BLOCKQUOTE
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx
Sent: Wednesday, April 03,
2002 10:11 AM
Subject: [RT] Re: option
update
just to let you know
we got filled on the buy to close 175
qqqej at 1.75
net profit $21075
next
we are selling qavph
order to sell at.75
<BLOCKQUOTE dir=ltr
style="PADDING-RIGHT: 0px; PADDING-LEFT: 5px; MARGIN-LEFT: 5px; BORDER-LEFT: #000000 2px solid; MARGIN-RIGHT: 0px">
----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=profitok@xxxxxxxxxxxxx
href="mailto:profitok@xxxxxxxxxxxxx";>profitok
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=gannsghost@xxxxxxxxxxxxxxx
href="mailto:gannsghost@xxxxxxxxxxxxxxx";>gannsghost@xxxxxxxxxxxxxxx
Sent: Monday, March 25,
2002 10:03 PM
Subject: option
update
current value
remember purchasing 130000 of options in
the last 4 weekshere is the update as of today
closehere is the update as of today
closelong 175 IRIAI
total cost $144000 current value
$$133000long 175 QAVPH
cost $25625 current value $
11375short 175 QQQEJ
sold $44875 current profit
$16000have order to buy back to close@
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