Soul - One more Question - I always get hate mail when I mention this.
OK here is goes. I sold 232 Dec 2013 calls with a strike price at $12 in June for around $1.01 and now I am #$%$ and what to take some money off the table . I want to close my Dec 2013 calls but I have been waiting and every day i wait it works against me. 2 weeks go the spread was $.57 and the now the spread is around $.85 to$.90.
ill give you my 2cents worth, quit trading because you don't know what youre doing because you ask people everday for advice, I suggest you shine shoes or get a paper route, you may be better in those lines of work!
Anthony; I'm confused. If you sold the Dec 12 calls and the price remains below $13 you make money. I only sell calls against my long position in the stock and if that's what you've done, at least you've lowered your cost basis on your GNW shares by $1. It could be worse. I'm just holding these shares long right now. No options working for me in GNW. Why so glum?
Anthony gotta go I'm done for the day. Future advice, when you ever find another deep value stock like GNW buy when their is blood in the streets, in a tax free account, walk away and enjoy life. Options are for traders, not investor's. Be smart and do it like us, trade the gaps up and down and leave the core position alone.
The odds of winning trades against options is greater and the other reason is this, you can always cost average up less than 40 cents on common shares if you make a mistake along the way with common shares, options you lose 100% of the money or you get stuck writing options to cover other options.
Investing is not complicated if you are in the business, options ARE NOT for investor's. Options are for hedging profits...IMO.
The only person who will tell you options are better is the MM selling you the options, my advice is free and correct!