Yes, yes, yes, not currently(if you were paying attention you would know I was providing an example of selling calls for f7 nor me), and again not currently.
I'll begin selling calls against my common in 1/4 increments starting when EA's in the high 60's, another 1/4 in the low/mid 70's and a final 1/4 in the upper 70's. I'll hang on to the last 1/4 through the split, then sell 1/2.
My discipline prevents me from buying more shares once I have 15% in my portfolio. Therefore, since I can't buy more common, the next obvious alternative is options. That's why I own Jun 50 calls and was trying to buy Jan 08' 50's as well but never got a fill at my limit price.
I decided to sell the puts for reasons already discussed ad nauseam and I was trying to sell more Jan 09' $60 puts but again my $15 limit price didn't get filled either. I really would have liked to sell those at $15 though, crap.
I actually contemplated buying some cheap puts to hedge all my long positions but I decided that I will wait for the next big move (either one day or multi-day) of 15%. So yes, in the high 50's I'll be looking at some $50 or $55 puts to buy but not till then.
I also use Strangles, Straddles, vertical call, & vertical put spreads. No way!! Yes way!! For kicks I�ll show you a couple I did recently in my TDameritrade acct. The first is called a strangle, the second is called a bull call spread(feel free to check the times to see that my trades actually occurred:
Filled Buy to Open 5 +QCSCF Net Debit 0.38 -- -- 15:56:45 02/21/07 Order No. 270119xxxx VCLK Mar 30 Call Filled Buy to Open 5 +QCSOE Net Debit 0.77 -- -- 15:56:45 02/21/07 Order No. 270119xxxx VCLK Mar 25 Put
Filled Buy to Open 15 +AUBDU Net Debit 6.41 -- -- 15:39:17 02/21/07 Order No. 270109xxxx AGIX Apr 7.5 Call Filled Sell to Open 15 +AUBDB Net Debit 5.31 -- -- 15:39:17 02/21/07 Order No. 270109xxxx AGIX Apr 10 Call
Last week I did the following strangle on NTRI. I was able to sell the call the next day for a 20% profit on the entire cost I paid for both sides of the strangle. I�ve still got the puts (playing with the �free� houses money) but I�m looking for a little more downside because I want $1 for them and there only selling for .30 now. If I get the $1 that will be a cumulative 43% return. But since I�m just a poser I guess it doesn�t matter. LOL!!
Filled Buy to Open 5 +NSICI Net Debit 4.37 -- -- 02/14/07 Order No. 268702xxxx NTRI Mar 45 Call
Filled Buy to Open 5 +NSIOH Net Debit 4.37 -- -- 02/14/07 Order No. 268702xxxx NTRI Mar 40 Put
Here's a quote from pointofview's post:
"Also, his posts have all given many examples of why it's a good trade so can you come up with why it's not? I understand that if the stock goes to zero I could be screwed unless I buy the puts back at some preset acceptable loss point but if I buy the stock itself I'm at risk of the same thing. Can you justify your belief or was flyer right when he inferred that it's just over your head?"
I agree and would like to see some "actual numbers" or some (ANY) justification for your spewing. I actually think you just don't do enough (maybe not any) options trading to understand the reasons I am using them. I also don't understand your apparent bewilderment that I could be using so many tools to trade with. In actuality, that may be your problem. You have to figure out that each trade is a separate, individual transaction and NOT a sum total position.
Maybe your quote: "give me a break and stop pretending you know what you're doing / 'teaching' others." should be directed at yourself.
Good luck, let me know if you need some more help with investment info (I don't hold a grudge).