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Covered call options in IRA account
Hi Mark, Just happened to find this forum. Very educational. I wrote a covered call from my IRA account. Once the expiration date came, the stock price is higher than strike price by few dollars. But i seem to still own the stock. what could ...
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Delta
Hi Mark First of all thank you for your excellent responses to my questions. I am learning about options and I have a question on the meaning of delta The official definiton seems to be that delta is the amount an option price changes for ...
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Monthly income from options
Mark, I stumbled upon the bivio website and read the emails and your informative responses and was very impressed. I have just ordered your book and look forward to reading it. I have a question about using options to create monthly income flow and how ...
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Optimal strike price for long term investing
Hi Mark I have startied to get my feet wet with options and have made my first few trades in the last month. I am investing for the long term (my horizon is 20 years). I used to maintain a buy and hold strategy with ...
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Rolling when in the money
Hi Mark I just rolled my position on FXI (china ETF) and wanted to get your advice on whether I did the right thing so that I continue to learn. Around March 21st I sold an April FXI $133 call when the underlying was at ...
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what to do?
I bought 100 shares of apple stock at 138 and wrote a call option (MAY 150). Now the stock is going up more than I Thought. What is the best strategy now, wait for the option to expire? What should I expect if the option ...
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Call Ratio Spread-What to do if a stock declines
Mark, Please help in this situation. Suppose one buys a stock at 93 and it declines to 80. Now one decides to do a repair strategy via a call ratio spread . 1. Sell May 85 calls(short) 2. Buy May 80 calls(long) The idea is ...
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Covered calls-downside protection-Collar Trade or Stop Loss
Thanks Mark for your simple and straight forward explanation about covered calls. Having lost in the market through the buy and hold strategy, I now believe the best way to protect your capital and gain in the market over time is through covered calls. Covered ...
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Tax question
Mark, I got around $3 per share by selling a call option (the stock was called). How do I report on my taxes the $3 gain? Do I add the $3 to the price the stock was called at ($75 + $3) and deduct my ...
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How to buy back a covered call
Mark, I placed a contract for 10 GE covered callsSP40 Sept.Now I want to buy them back before expiration. I'm afraid my stock will be called away, and I don't want to pay capital gains. CK Hello CK, 1) If you want to repurchase those ...
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Question
I would appreciate if you can help me with the following question. What does to "Buy a floor mean"?, 1. To buy a put ? 2. To write a put ? Thank you so much. Ramon Pena Hello Ramon, It turns out that neither of ...
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COVERED CALL-POT
Hi Mark, I will appreciate your response to the following question I own 1000 shares of POT. Currently the stock price is $ 160.46 I want to generate income and I don't mind if I get assigned. Given that which is he best option 1) ...
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Stop Loss
Mark, Can you share what are the main reasons in trading options vs using stop losses for the underlying? besides leverage I can achieve leverage just by trading the underlying on margin. I think I read a paper somewhere are advantages of options but can't ...
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Loved your book...now I have more questions
Hi Mark I just finished reading your book "Create Your Own Hedge Fund". It is an excellent read and I loved the book. Thanks After reading your book I have more questions to ask you. As I am just now learning about options, please forgive ...
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selling calls in vs out of the money
Hello Mark, Ditto, I understand when a stock price hits an out of the money strike price I get called out and have to exercise. You are under a serious misconception. When the stock 'hits an out of the money strike price' NOTHING HAPPENS. The ...
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