It's exactly that - a lottery ticket.
Don't say never. For 20+ years, I never exercised a thing. But with IB's free exercise, I found myself in a few situations where the option was...
That's usually the case with most brokers and more so with IB. Owning one Jan '10 90 call gives you the right to buy 100 shares of GSF at $90 or...
GSF has nothing to do with how the options are handled. The OCC takes care of that. I would not assume anything. The OCC will determine what the...
To be covered (for margin purposes) you'd need to be short the stock or own a put with the same expiration or longer/same strike or higher....
Hey IV. The risk/reward may not be 9:1 but a noob often finds a way to give back a chunk of a naked write's profit :)
I think that on a stand alone trade, most people would take 90% of the profit now versus risking that amount for 10% more profit and would move on...
As commiebat indicated, your options will be adjusted to reflect the terms of the merger. To get a better idea of how this wroks, you can read...
>> âºâº $1MM liquid -- how difficult to achieve 15% annual ROI with option writing? >> You're asking this on the internet where there is some...
OK, I sit corrected. Either way, it's not about me :)
Assuming that you're not spamming for the site... In general, if anyone was that good at stock/option picking, wouldn't they do a whole lot...
OP = Other Poster
If there's time premium remaining in the short leg, you're unlikely to be assigned early. Also, the ROC of delta is not going to be a factor...
1) There are no free lunches 2) If it looks too good to be true, it is 3) See OP's reply that they are going Ex-Dividend on 10-Oct-07 for...
Stop worrying about early assignment. If there's time premium remaining in the short put, it's highly unlikely that it will be assigned early....
And had RIMM dropped 10+ pts this AM, thereby making the put a winner, someone would be saying, "There's the logic for trading the synthetic...
Some people think that they're smarter than the market.:confused:
There are some errors in your post. Most are minor. Some clarifications: b) To cover myself I Buy LEAPs (Apr 2008) Those are not LEAPS....
Break down and buy some clothes!
Hey IV. I did the OTM double RC on RIMM. As usual, thanks again for bringing this strategy to attention deficit types like me :)
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