You're welcome. I can't imagine any prob with the written 630P here. I'd be surprised if we touched 640 tomorrow. My projected range is 646.00-657.50.
I´ve been puzzling about being able to SELL some options and buy back after they collapse. I´ve played with it on paper. Don Bright was always saying SELL. Actually I can see at least one trade a week, in which at the end of a short trend, the inflated premium collapses for 7 or 8 hours. How to SELL is my problem. Don obviously has a big account and so SELLING for him is okay, he has the margin. But for me a small retail novice I can only SELL if I put on a spread of some type. This doesn´t work out to well. Say you have a short UP trend and the CALLS become inflated. When the trend stalls, you want to SELL the CALLS. I tried to search for a way to do this, but cannot find anything satisfactory, within my limited knowledge. There is a CREDIT SPREAD, there is a DEBIT SPREAD, there is HORIZONTAL, or CALENDAR SPREAD. All of these require that you also are going to remain LONG CALLS, if you SELL using them, and then in a few hours close the SOLD side out, to buy back cheaper. If you closed the SOLD part of the SPREAD on a buy back, what you are left with is CALLS that are going to lose money as well, because the trend has reversed, and is no longer going that direction anymore. I´m stumped on this obvious way of making a trade, by selling swollen premium and buying back when it reverses and collapses. You get left with LONG OPTIONS from one side of the spread.
This is what happens when you have a "second job." Still in the monthlies. Surprized by the selloff - I think it rallies back.
sell the box,20 30 call sprd ,20 30 put sprd,10 dollar box,always worth 9 3/4 10 1/4...leg out with the trend..have to pay commish....take off early part of exp week to avoid assignment
Was working 5.00 and would've gone there, but I went to 4.30 when the stock fell below 647. 4.60 mid when I filled at 4.30.