Tag: Covered Call

  • What is Option Assignment and Is it always bad?

    What is Option Assignment and Is it always bad?

    Option Assignment is one word that a lot of option traders are scared of. For a primer of what is an option assignment, let me share the basic concept first. This is a detailed explanation from The Options Industry Council. You may also learn more from Pete here. The option holder has the right to…

  • How to Trade Fear

    So you have been watching this “interesting” stock market. One day down, next day up and in the end you don’t seem to find any “wealth effect” in your stock portfolio. And then there is this marvelous VIX, Uncle Ben’s bullish notes about subdued inflation, bullish economic data and you think everything seems to be…

  • How to Play Transocean (RIG) via OptionTrading

    How to play elevated Implied Volatility on Transocean (RIG), was a key question in lot of trader’s mind. In fact, it still is. This post is about one of the option + stock trading strategy that can be employed to play such scenarios assuming you are willing to hold the stock for long term. A…

  • OPNewsletter (Jul’09) +3.55%

    Last week markets tried very hard to rally but ended in negative territory. Market’s character can now be defined by more of “withdrawal of demand” vs anything else. For overall OPNewsletter, we have invested 38.7% of assumed 10K capital. As of last Friday close, we are up +3.55% x-commissions and +2.2% including commissions. I usually…

  • OPNewsletter Jun’09 is up 7.34% (Open)

    A week in which Dow moved between +2.5% to -1.75%, S&P500 from +3.25% to -1.5% and RUT from +4.75% to -1.50%, and all closing in negative territory, OPNewsletter gained +2% that too after increasing capital investment by 36% over last week. Overall OPN is up +7.35% (x- brokerage commissions) and +5.3% (including commissions). This excludes…

  • OPNewsletter : May’09 (+11.2%), Jun’09 (Opening Shortly)

    It feels great when a single covered call option spread (done only @ 7.3% of 10K portfolio) can deliver OPNewsletter monthly subscription fee, cover commissions and still deliver profits, without making adjustments throughout the holding period. And what if the newsletter doesn’t get a single cent if doesn’t deliver profits? Welcome to OPNewsletter (A “No…