Comments for Option Matters

Comment on Options Education Day: “Efficient Indexing for Inefficient Markets” by jean

jean — Sun, 25 Mar 2012 03:50:01 +0000

I am looking for some help in trading options. Please advise if there is a workshop or seminars in our area. i live in Vancouver, B.C tel: 6042723373

Comment on Risk reduction strategies by R(Bob) Hendy

R(Bob) Hendy — Mon, 16 Jan 2012 17:08:01 +0000

Hello
I would appreciate Richard’s comments on this.
Sythentic Call Structure

Buy long term Call (Leap)–lets say January 2014(or as far out as possible)

Sell short term Call — Lets say April 2012 (3 months out)

What are the danger’s or problems with this kind of stucture
Andif not the above - what would Richard think about a shorter time on the Covered Call — say one month

Any other comments would be appreciated
Thank You
Bob Hendy
maxbob@telus.net

Comment on He Shoots He Scores! by Marie-Josée Laramée

Marie-Josée Laramée — Fri, 16 Dec 2011 20:04:25 +0000

@Slick - Here’s Richard’s response:

I could not agree more. If BCE or Rogers were to get any boost from the remote possibility that the Maple Leafs make a run to the Stanley Cup, it would be the result of emotional buying from investors, not bottom line revenue. Hence my point that call buyers are betting on sentiment, while covered call writers are focused on fundamentals and enhanced cash flow.

Comment on He Shoots He Scores! by slick

slick — Wed, 14 Dec 2011 17:31:29 +0000

Richard;
Nice article, but the Leafs making the playoffs, or even making a run if they do get there, is remote.
Also, the dilution of only a 37.5 % interest [BCE for example] in all of MLSE,
is such a small percentage of the behemoth, that even a Stanley Cup wouldn’t provide that much to the bottom line.
Lots of tentacles on this octopus.
I do like the covered call strategy though.
And may pursue it further.
When is your next appearance on BNN, Christmas again??
slick

Comment on Listings: New Options Classes to Start Trading by Ken Nakamura

Ken Nakamura — Thu, 24 Nov 2011 22:38:14 +0000

I am learning Options through the OIC but would like to further my knowlege

Comment on A Bet on Dividends by Options Creme

Options Creme — Mon, 03 Oct 2011 17:57:19 +0000

If you trade covered calls, an access to a covered call screener is a must.
A screener gives you the ability to detect the stocks that yield the highest premiums on option writing, either on weekly cycles or monthly ones.
That’s why you should check out “Options Creme”. Currently the site is running in BETA mode and access can be given by invitation only.
Link: http://OptionsCreme.com

Comment on Copper Oversold? by David C

David C — Tue, 27 Sep 2011 16:07:03 +0000

Where will Richard Crofts presentation from SAturdays Toronto Options seminar be posted ?? Your site is not clear where such a video would be posted.
Please advise.

Comment on Low Volatility Strategies by Maggie

Maggie — Tue, 24 May 2011 16:10:16 +0000

Hi Richard,
Nice to meet you in Calgary. With regarding this Calendar spread. I have the strike price at 19.50. Net debit is 40 cents. I got assigned the May Call XIU 19.50 and now is trading at 19.60. With the Vix is down to 16.50 on Tuesday trading. I am still hold the Sept Call @19.50. Do you think this trade is still good to hold on.
If yes, what is the exit point?

What is the different between this trade vs. the XIU Sept put 19.50 on your recent post?

Cheers,

Comment on Low Volatility Strategies by Bob at Option Strategy

Bob at Option Strategy — Wed, 04 May 2011 06:15:39 +0000

I’m especially interested by your point about volatility. Calendar spreads should be avoided in a high volatility environment. When volatility is low, it’s tempting to speculate on rising volatility pushing up the price of the long call. On the other hand, you point out that large moves in the underlying stock price - what’s expected with high volatility - will drive the trade into the red. I’d think that the trade would work so long as the stock stays close to the strike price without rising above it.

Comment on Equivalent Share Position by Marie-Josée Laramée

Marie-Josée Laramée — Mon, 18 Apr 2011 12:58:14 +0000

@Michael - Here is Richard’s answer:

The book I generally recommend is Options as a Strategic Investment by Lawrence McMillan 4th edition. The most recent edition has over 900 pages of text, so treat it as a handbook. He covers just about everything you would want to know about almost any option strategy. The idea is to focus on the strategies that you would typically use and refer to that section of the book as needed. The book is available on Amazon.ca for $58.62 CDN.