Agnc call spread, is the risk reward good?

Discussion in 'Options' started by optionnew, Aug 27, 2011.

  1. newwurldmn

    newwurldmn

    I see. Why not do the Dec calendar spread instead of Jan13? Even less premium at risk and better liquidity.
     
    #31     Sep 16, 2011
  2. The diffrence is if stock falls lower then 25, with Jan I have more time for a rebound vs. december. Shoud there be a big diffrence in premium I would probably buy december as you said.
     
    #32     Sep 16, 2011
  3. Exercised my 25 calls today. The December call is trading for a .40 premium, will see Wednesday if will get called on the December.
     
    #33     Sep 19, 2011
  4. spindr0

    spindr0

    Today was ex -div so how about a recap of what exercising your long calls achieved for you?
     
    #34     Sep 21, 2011
  5. Recap, sure. The stock fell with a net -.54 (.36 AH), while the option fell by fell by -.70.
    Going forward since the stock fell, I am considering substituting the stock with an even deeper ITM option that would have minimal time premium.
     
    #35     Sep 21, 2011
  6. spindr0

    spindr0

    What the stock does in AH is irrelevant since the option change is based on the regular hours close. So ignoring the AH change, are you saying that you picked up a net gain of 16 cts ?
     
    #36     Sep 21, 2011