| StockFetcher Forums · General Discussion · Options .. option payoff diagram generator | << >>Post Follow-up |
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4/21/2018 7:38:20 PM http://www.option-price.com/option-portfolio.php http://www2.gsu.edu/~fncjtg/Fi8000/dnldpayoff.htm http://www.macroption.com/drawing-option-payoff-diagrams-in-excel/ http://www.optionsprofitcalculator.com/ https://www.fidelity.com/learning-center/investment-products/options/call-option-profit-loss-diagram http://www.optionsuniversity.com/blog/max-gain-max-loss-break-even-trading-options/ https://riskprep.com/ https://www.optiontradingtips.com/options101/payoff-diagrams.html http://www.theoptionsguide.com/stock-option.aspx https://marketxls.com/covered-call-income-generation/ https://marketchameleon.com/Overview/TSLA/StrategyPayout/ ---- http://digitalcommons.georgefox.edu/cgi/viewcontent.cgi?article=1071&context=gfsb https://www.interactivebrokers.com/en/software/tws/usersguidebook/mosaic/option_strategy_lab.htm |
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4/27/2018 11:06:45 PM http://www.optionshawk.com/ Daily Freebies 4/26/18 CVS Healthcare (CVS) with 3,250 January $67.50 calls bought for $6.45 to $6.50 today to open ahead of earnings on 5/2, shares working off of recent lows following their deal for Aetna was announced Google (GOOGL) with 500 July $1100 calls bought to open today $20.50 to $20.80, shares holding near the 200 MA after earnings weakness MasterCard (MA) the May $182.50/$190 call spread bought 2,000X4,000 today ahead of earnings on 5/2, coiled name under recent highs |
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4/27/2018 11:12:26 PM https://www.seeitmarket.com/category/education/options-education-2/ https://www.seeitmarket.com/category/education/investor-psychology/ https://www.seeitmarket.com/category/education/strategies-setups/ http://www.optionstradingiq.com/free-option-books-8/ FEBRUARY 23, 2018 GAVIN MCMASTER How To Trade A Poor Man’s Covered Call https://www.seeitmarket.com/how-to-trade-a-poor-mans-covered-call-17855/ http://www.optionstradingiq.com/poor-mans-covered-call/ Most traders worth their salt have used, or at least heard of covered calls. Covered calls are really easy to implement and are a proven long-term strategy. However, for some, the costs of implementing this strategy can be prohibitive. For a covered call trade, the investor needs to purchase 100… ___________ Using Cash Secured Puts To Pick Up Stocks For Less https://www.seeitmarket.com/using-cash-secured-puts-to-pick-up-stocks-for-less-17831/ FEBRUARY 16, 2018 GAVIN MCMASTER Using Cash Secured Puts To Pick Up Stocks For Less Getting paid while you wait, I like the sound of that. A cash secured put is a conservative options strategy that can be used to purchase a stock for lower than the current price. Let’s say you’re happy to buy Apple (AAPL) at $173. You’re definitely going to be happy… Article How To Trade A Poor Man’s Covered Call Gavin McMaster Gavin McMaster Options Trading IQ February 23, 2018 Investing Research, Education Most traders worth their salt have used, or at least heard of covered calls. Covered calls are really easy to implement and are a proven long-term strategy. However, for some, the costs of implementing this strategy can be prohibitive. For a covered call trade, the investor needs to purchase 100 shares of the underlying stock. For a stock like Apple (AAPL), that means coming up with around $17,400 or for Tesla (TSLA), an investor would need nearly $34,800. A lot of investors do not have that sort of capital, and even if they do, diversification becomes an issue when allocating such a large amount of capital to one stock. Enter the poor man’s covered call. Sign up for our FREE newsletter and receive our best trading ideas and research Enter your email This strategy is very similar to a regular covered call but requires only a fraction of the capital to enter the trade. Even though less capital is required, the dollar returns will be similar on both the upside and the downside. trading covered call optionsBecause less capital is used for the (roughly) same dollar gain or loss, the percentage gains and losses are magnified. It’s somewhat similar to trading on margin, so traders need to keep that in mind when deciding whether or not to use this strategy. To trade a poor man’s covered call, instead of buying 100 shares of the stock, the trader buys a LEAP option. LEAPS are long-term equity anticipation securities and behave just like other options, but they have a long duration, sometimes up to two years. ALSO Read: How To Trade An Iron Condor Using the AAPL example, we could invest $17,400 for a regular covered call, or we could buy a January 19, 2019 call option for around $3,030. The beauty of using LEAPS for covered calls instead of share is that in the (unlikely) event that AAPL goes bankrupt, the most you can lose is the $3,030 that you put in to the trade. You can go here to see an example of a poor man’s covered call from 2017 that played out over the course of the year. I used IYR and was able to achieve a return of 37.53% compared to 4.22% for the underlying ETF. Twitter: @OptiontradinIQ The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity. NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER. -- Using Cash Secured Puts To Pick Up Stocks For Less Gavin McMaster Gavin McMaster Options Trading IQ February 16, 2018 Investing Research, Education Getting paid while you wait, I like the sound of that. A cash secured put is a conservative options strategy that can be used to purchase a stock for lower than the current price. Let’s say you’re happy to buy Apple (AAPL) at $173. You’re definitely going to be happy to buy it at $165. Let’s work through an example. A trader wants to buy shares of APPL, but wants to wait for a minor pullback before getting involved. With the stock trading at $173.09, the trader wants to wait until it hits $165 before making a purchase. Instead of waiting for a pullback (which may never come), the trader can sell a cash secured put with a strike price of $165. Sign up for our FREE newsletter and receive our best trading ideas and research Enter your email The April 21st, $165 puts are currently trading for $3.20, so by selling this option the trader collects $320. He also has an obligation to buy AAPL at $165. It’s important to remember that even if the stock drops to $100 between now and April 21st, the trader still has to buy APPL for $165. Let’s say AAPL does fall below $165 and the trader is assigned 100 shares. The total cost would be: 100 x 165 – 320 = $16,180. This gives an effective purchase price of $161.80. Not only do you need to be okay with purchasing the stock at this price, you need to have the money reserved to make the purchase. Which Month Should You Sell? In this example the trade was happy to buy AAPL for $165, but which month should he use? We used April in the example, but what if we chose a longer or shorter timeframe? Option premiums will be more expensive the further out in time you go, but the rate of time decay will be slower and the annualized return will be lower. Let’s compare April and November to illustrate the point. The April put is trading for $3.20 and the November put is at $10.05 If AAPL stays above $165 and the puts expire worthless the returns will be as follows: April $165 put – 1.94% or 11.06% annualized November $165 put – 6.09% or 8.14% annualized You can see that the return on the November put is higher on an absolute basis but lower on an annualized basis. ALSO READ: How to Trade an Iron Condor options tradingWhat Are the Risks? Every strategy has its risks and this one is no different. There are two scenarios that create a downside in this strategy. First, if the stock does not move lower but instead moves higher. If this happens you will not be assigned on the stock, which means you will not receive the shares that you wanted. As the stock moves higher, you will be left watching and missing out on the gains it could have provided. If the stock makes a huge move higher, a cash secured put strategy will significantly underperform outright stock ownership. For this reason, cash secured puts are best used on stocks on which the trader has a neutral to slightly bullish outlook. The second situation is having the stock move lower and then continue to move lower. In an ideal world, you would want to the stock to move to your strike price, get assigned the shares, and then have the stock take off higher. Unfortunately, things don’t always work out this way. But, think about it this way, if you were happy to but APPL at $173.09, you are still better off because your cost basis is much lower at $161.80. Also, remember that if you are assigned shares, you can continue to generate income from those shares in the form of dividends and selling covered calls. Conclusion If you are a long-term investor or just want to acquire stock at lower than the current price, cash secured puts can be a nice way to do that. They have several advantages if you can afford the time to wait and you get the added bonus of being paid while you wait to take ownership. If you want to join me for an upcoming webinar, I’ll share exactly how I trade this and other options strategies. Twitter: @OptiontradinIQ The author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity. NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER. |
| four 5,087 posts msg #143378 - Ignore four modified |
4/27/2018 11:41:46 PM http://www.optionstradingiq.com/the-wheel-strategy/ http://www.optionstradingiq.com/getting-started-with-options-trading-iq-2/ |
| four 5,087 posts msg #143379 - Ignore four |
4/28/2018 12:05:19 AM https://www.randomwalktrading.com/option-trading-newsletter-october-3-2017/ Vertical Call Spread |
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4/28/2018 7:44:28 AM http://www.optionstradingiq.com/option-assignment-and-exercise/ |
| 15minofPham 170 posts msg #143387 - Ignore 15minofPham |
4/28/2018 10:52:46 PM Four is SF Google. Keep posting great articles! |
| StockFetcher Forums · General Discussion · Options .. option payoff diagram generator | << >>Post Follow-up |
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