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Thanks for the reply.
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
Ray
Raffurty
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003 7:45
PM
Subject: Re: Whopping Premiums, was : RE:
[RT] Re: Fedback-This Week's Most Unusual Covered Call
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:
<A title=prosys@xxxxxxxxxxxxxxxx
href="">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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