Comments for Option Matters

Comment on Strangling CIBC? by Brent McLellan

Brent McLellan — Tue, 30 Apr 2013 13:22:11 +0000

Banks seem to be in play quite prominently recently. How will the looming housing bubble and credit crunch affect our major financial instititutions? What other strategies will help to benefit from these events?

Comment on Straddle Follow Up by John Davies

John Davies — Tue, 12 Mar 2013 18:07:07 +0000

Could I get a copy of the presentation please?

Thank you,
John

Comment on Straddle Follow Up by Marie-Josée Laramée

Marie-Josée Laramée — Mon, 11 Mar 2013 19:05:58 +0000

@Gail - I’ve just emailed it to you. Thank you for your interest.

Comment on Straddle Follow Up by Gail Marriott

Gail Marriott — Mon, 11 Mar 2013 16:34:48 +0000

Could I have the PowerPoint presentation on Agrium……thank you very much….Gail

Comment on Suncor Got You Down? How About Getting Paid to Wait? by Patrick Ceresna

Patrick Ceresna — Mon, 11 Feb 2013 14:06:24 +0000

The 1.50% dividend is annual.

Comment on Suncor Got You Down? How About Getting Paid to Wait? by Larry Wong

Larry Wong — Sun, 10 Feb 2013 23:03:06 +0000

Is that 1.5% yield for 12 months or 8 months?

Comment on Volatility Skews by Marie-Josée Laramée

Marie-Josée Laramée — Tue, 11 Dec 2012 12:23:18 +0000

@Cherif,

1) I would use an average IV for the close to the money calls and puts. In other words, with SPY at 141 look at the 140, 141 and 142 calls and puts and take an average value.

2) The MX website (www.m-x.ca) shows the implied volatility for all options on an underlying security. Just punch in the symbol and them IV will show up alongside the bid asked and last trade for each option series.

Comment on Volatility Skews by Cherif Salib

Cherif Salib — Fri, 07 Dec 2012 03:07:15 +0000

Informative & interesting article!

I’d like to understand the mechanics of how to implement/use the idea put forward.

Using the figures at the closing as of December 6, 2012; for the S&P 500:

(i) VIX closes @16.58 (Presumably, 16.58 captures the cash market volatility)

(ii) S&P 500 closes @1,414

Future market volatility for the S&P 500 for say January 19, 2013 would presumably be captured using the SPY (as a proxy for S&P 500). In this case we have IV for SPY JAN/19/2013 CALL = 14.71% & SPY JAN/19/2013 PUT = 16.06%.

Two questions if I may:

1st question: Which figure would best capture future volatility of the S&P 500 for January 19, 2013; IV of the Call option or the IV of the Put option?

2nd question: where would I get the cash market volatility for a stock; say RY?

Thanks

Comment on Noise and the Naked Put by slick

slick — Wed, 10 Oct 2012 00:44:14 +0000

i sell puts against stocks that I wouldn’t mind owning, but at a lower price.
I like to sell puts that will assign the stock right before ex-dividend time. gives a little more comfort.
I also like to sell puts on a day when the share price has a big drop. there is a little more tension in the market, and option prices can be inflated.
BTW, I rarely get exercised, because I have no problem buying back the short put if I have a nice, quick profit.
slick

Comment on Noise and the Naked Put by richard d

richard d — Tue, 02 Oct 2012 02:25:19 +0000

i sell puts all the time when the market is rising hoping not to be assigned .the strategy works for me most times and besides if someone dosnt sell how can others buy .