Re: [RT] Hedging with Options

[Ben <profitok@xxxxxxxxxxxxx>]

Yes

the decay is LESS on the  dec month puts,

 

also, I bought the puts first when sp was up 3

then, when we fill the gap from Thursday, I enter long the 4 big sp at 1180.5

 

----- Original Message -----

From: ketayun

To: realtraders@xxxxxxxxxxxxxxx

Sent: Monday, October 31, 2005 6:53 AM

Subject: RE: [RT] Hedging with Options

Sorry, Yes, I did mean calls. The question was did you use DEC instead of NOV in this instance because there is less time decay on an overnight type of situation?  

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From: realtraders@xxxxxxxxxxxxxxx [mailto:realtraders@xxxxxxxxxxxxxxx] On Behalf Of Ben
Sent: Sunday, October 30, 2005 10:39 PM
To: realtraders@xxxxxxxxxxxxxxx
Subject: Re: [RT] Hedging with Options

 

Hello
this was done with dec 1175 puts not calls
When you are long you hedge is puts
When you are short your hedge is calls
the distance between your future buy stop and your put strike price is your
max loss potential in the overnight stay
Ben
----- Original Message -----
From: "ketayun" <ketayun@xxxxxxxxxxxxx>
To: "Realtraders@xxxxxxxxxxxx Com" <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, October 30, 2005 6:49 PM
Subject: [RT] Hedging with Options


> Hi Ben,
>
> During your last post you mentioned that you hedged your long position
> with
> Dec Calls. Did you use Dec instead of November because the time decay on
> an
> overnight or swing trade is less or was that a typo?
>
> Thanks very much for detailing how you placed the trade.
>
> Sincerely,
>
> Kate
>
>
>
>
> Yahoo! Groups Links
>
>
>
>
>


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