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Hi Ira,
That chart is from my broker OptionXpress.
Unfortunately it is one of the few tools that require an account to
access. They provide so many free screens I guess they wanted something
for clients only.
Good luck and good trading,
Ray Raffurty
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Ira
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Wednesday, March 12, 2003 1:04
PM
Subject: Re: Whopping Premiums, was : RE:
[RT] Re: Fedback-This Week's Most Unusual Covered Call
Interesting charts. Where can these be
found? There was a web site that used to provide this information and
more, but I seem to have misplaced the URL. Thanks, Ira.
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Ray
Raffurty
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003 5:23
PM
Subject: Re: Whopping Premiums, was :
RE: [RT] Re: Fedback-This Week's Most Unusual Covered Call
The attached chart shows that implied
volatility of the OEX which usually tracks 30 day historic volatility has
increases substantially in the last few weeks.
Good luck and god trading,
Ray Raffurty
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
M.
Simms
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Wednesday, March 12, 2003 1:56
AM
Subject: Whopping Premiums, was : RE:
[RT] Re: Fedback-This Week's Most Unusual Covered Call
Speaking of
options, has anyone taken a gander at the whopping premiums of index
options like the OEX in the current expiration Month ?
Holy
moly....lots of opportunities here in shorting premium if the angst is
near it's max.
2 weeks
ago, long puts was a great position, but RIGHT NOW I can't see going long
<any> options at this juncture, can you ?
<FONT color=#0000ff
size=2>
<FONT color=#0000ff
size=2>
<BLOCKQUOTE
>
<FONT face=Tahoma
size=2>-----Original Message-----From: Ray Raffurty
[mailto:r.raffurty@xxxxxxxx]Sent: Saturday, March 08, 2003
6:00 PMTo: realtraders@xxxxxxxxxxxxxxx; John
CappelloCc: MedianLine@xxxxxxxxxxxxxxxSubject: Re:
[RT] Re: Fedback-This Week's Most Unusual Covered
Call
Correction: The <FONT
face="Courier New" size=3>cash in lieu of 0.30422 share of Travelers
Property Casualty Corp. Class A ("TAP.A") Common Stock; plus cash in
lieu of 0.84326 share of Travelers Property Casualty Corp. Class B will
be a lot more than what I said since TAP.A is at is at $14.40 and B is
at 14.44. Sorry, but it will be around $16.20 per
contract.
<FONT face="Courier New"
size=3>
Good luck
and good trading
<FONT face="Courier New"
size=3>
Ray
Raffurty
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Ray
Raffurty
To: <A title=jvc689@xxxxxxx
href="">John Cappello ; <A
title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Cc: <A
title=MedianLine@xxxxxxxxxxxxxxx
href="">MedianLine@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003
5:40 PM
Subject: [RT] Re: Fedback-This
Week's Most Unusual Covered Call
Hi John,If you purchased 100 shares of C
and sold 1CLTCC call your are NOTcompletely covered. In
August of 2002 Citigroup spun off it's TravelersInsurance division
<A
href="">http://www.citi.com/citigroup/press/020820a.htm
anddistributed the Traveler shares to owners of Citigroup stock in
the ratiodescribed at<A
href="">http://www.cboe.com/common/pageviewer.asp?file=02-454.doc&dir=ttstocksm&head=stock%20splits%20%26%20mergers&sec=5Since
options, including the March 15 CCC calls, where trading at the
timethose contracts had to be adjusted to include the shares
distributed and theoption symbols where changed to as the LT thus
CLTCC is a nonconformingoption. At the time of the
distribution a new series was created foroptions sold after that
date without the LT symbol to indicate 100 shares ofCitigroup
only. In other words if you owned 100 shares of C in early
August2002 and sold (1) 15 CCC call you would be required to
deliver both the 100Citigroup shares PLUS the shares of Travelers
you received, if exercised,and the symbol was changer to
CLTCC. After the distribution date if youpurchased 100
shares of C and sold 1 CCC 15 call you would be covered.
Asfar as I know the unusual option symbol is always the
nonconforming one.If you look at the attached chart you will
see that in every case the optionwith the LT designation is
trading at a higher bid and ask for the samestrike than the option
without the LT. This occurs because the value of theoptions
are determined by adding the value of the various Travelers
sharesto the 100 Citigroup shares.I don't what Smith
Barney told you but CLTCC is a 15 strike, it's just formore than
100 shares (nonconforming). If you go to the OptionXpress
website and go to the calls only option chain you can check a box
to show thenonconforming options. If the box is checked the
LT series shows and if itis not checked they don't show.I
believe the quote you got over the week end on CCC was
erroneous. Theremay not even be a market in that option
currently (in is no longer showingup). It is possible that
the data from which the various option chains arecreated had
defaulted to an old quote when it found no new prices.
Also,when you use a website to search for option yielding a high %
on coveredcalls you must be very careful. They often do not
screen out nonconformingoptions but calculate the % gain based on
100 shares!!!!!!!!!!!!!!!!!!! Ihave been burned this way and
learned to check the CBOE's web site whensomething looks to
good.If you entered an order to sell CCC, I would question why
your brokersubstituted the nonconforming CLTCC and demand it be
undone. He should haverejected the order or given you the
price on CCC. If, however, you enteredthe order to sell
CLTCC you need to either close the trade before expirationor plan
to purchase the various Traveler's shares required to be
covered(more commissions). In this case, perhaps your kindly
old broker will undothe trade..., NOT. You can always do
nothing, but you will be shortTravelers on 2/24/03 after the
options are exercised. You can then buy toclose the short,
but the market has a way of moving to make this the worstpossible
outcome, not to mention additional commissions.The short will
be: 4 shares of Travelers Property Casualty Corp. Class
A("TAP.A") Common Stock; plus 8 shares of Travelers Property
Casualty Corp.Class B ("TAP.B") Common Stock; plus cash in lieu of
0.30422 share ofTravelers Property Casualty Corp. Class A
("TAP.A") Common Stock; plus cashin lieu of 0.84326 share of
Travelers Property Casualty Corp. Class B("TAP.B") Common
Stock.Also notice that there are 2 "cash in lieu of"
components. This means youwill need to pay out that cash to
the option holder ($1.15 per contract).This cash is probably to
adjust for fractional shares that wheredistributed, but which
could not be accounted for otherwise.I think the odds are
against you on this and you will be lucky if you onlytake a small
loss. Unfortunately the market does not hand out money
thisway. Occasional there will be small discrepancies in
option price to stockprice, pennies or less. Then
professionals will move quickly on volume andlow commissions to
close the discrepancy.Good luck and good trading,Ray
Raffurty----- Original Message -----From: "John
Cappello" <jvc689@xxxxxxx>To: "Ray Raffurty"
<r.raffurty@xxxxxxxx>;
<realtraders@xxxxxxxxxxxxxxx>Cc:
<MedianLine@xxxxxxxxxxxxxxx>Sent: Monday, March 10, 2003
2:07 PMSubject: Fedback-This Week's Most Unusual Covered
Call> Dear Ray,>> I just did a double
check with Smith Barney and the correct symbol> for the $15
strike price is CLTCC.... which is what I sold. Options>
Express also confirms this. The other designations just
further> describe the Travelers acquisition from last
year...and have nothing> to do with pricing other than
history.>> When I first looked at this trade, the $17.50
strike price was in the> profit mode to sell the call and buy
the stock...that is now close to> parity.>> Hope
this helps.>> Sincerely,>>
John>>>>> ------------------ Reply
Separator --------------------> Originally From: "Ray Raffurty"
<r.raffurty@xxxxxxxx>> Subject: Re: [RT] This Week's Most
Unusual Covered Call> Date: 03/08/2003
06:54am>>>
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