Thu, Jul 24, 2014, 7:40 AM EDT - U.S. Markets open in 1 hr 50 mins

Recent

% | $
Click the to save as a favorite.

American Capital Agency Corp. Message Board

  • yourbestfriendintheworld yourbestfriendintheworld Nov 19, 2012 2:47 PM Flag

    Already Put My Xmas Dollarmite Up

     

    Another ratioed synthetic long, because why not make the market pay for itself?

    Per unit: short 1 Dec 31 Put at 1.44, buy 1.4 Dec 31 Calls at 1.02. Net credit 1.2 cents per unit.

    The call delta is .5343 and the put delta is -.4556 and the underlying was 31.10 at entry, so the initial crappa* works out to 1629% on the call and 984% on the put.

    * - % change in option premium per % change in stock price.

    This topic is deleted.
    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • YBF,

      This looks like Déjà Vu all over again. You just told us about bailing for a loss on a similar position upon the slide last week. Why not consider wrapping this Christmas Dollarmite in Pampers so if you S$$T again, upon another #$%$ crash, you won't make a mess....sorry.

      Here is how. Just add a long leg buffer. You can still get the Dec 31/30 Spread for .50 credit. So multiply your present Short position by 3, and you retain your 1.50 credit, and secure your position down to 30.50(BE), and have a maximum .50/spread loss, @ 30.00 or lower.

      Granted your BE with your current position( on the Puts) is 31.00 - 1.44 or 29.56, but you covered last time at about the same PPS, right? This position, I am describing, saves you being in that uncertain position, wondering if we'll go to 15 and stay there.

      So just grab as many Long legs(30's) as you have Short Puts, and then grab additional spreads until you have the same credit, as you now have. For best results you need to hold the spread to either EX or OPEX.

      Just an idea.....

      DocReits

    • I like your trade, buddy : )

      Sentiment: Strong Buy

 
AGNC
23.51+0.12(+0.51%)Jul 23 4:00 PMEDT

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.
Facebook, Inc.
NasdaqGSWed, Jul 23, 2014 4:00 PM EDT
Gilead Sciences Inc.
NasdaqGSWed, Jul 23, 2014 3:59 PM EDT