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Other Added - Managing Option Directional Trades
Gas Credit Card or Gas Reward Credit Card?
With modern day living and our dependence on mobility, buying gasoline for your car is a necessity. Aside from the grocery store, your single largest weekly expense is more than likely what you put into your gas tank.Let’s face it, those gasoline prices are going no way but up!If you’re one of those people who’s heart begins to skip-a-beat each time you go to fill your automobile’s gas tank, perhaps it’s time to look at the new gas credit card offers available. Gas credit cards are brand specific, but the savings percentage is hig
action would have been to sell the March 22.50 calls and not take any money
out, but rather roll it all in to the March 25 calls. For example, if the
position was 10 options, selling the 22.50s would net $2600. That cash
could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57).
By doing so, one actually increases the upside potential for the trade
substantially. Of course, the full position is at risk, meaning one could
theoretically lose the whole $2600 invested, which is more tWith modern day living and our dependence on mobility, buying gasoline for your car is a necessity. Aside from the grocery store, your single largest weekly expense is more than likely what you put into your gas tank.Let’s face it, those gasoline prices are going no way but up!If you’re one of those people who’s heart begins to skip-a-beat each time you go to fill your automobile’s gas tank, perhaps it’s time to look at the new gas credit card offers available. Gas credit cards are brand specific, but the savings percentage is hig
4 Dynamic Marketing Tactics
Some of the simplest marketing tactics often produce the most profitable results. Here are 4 examples that have proven highly effective for any business.1. Focus on Your Best ProspectsImagine how profitable your business would be if more of your new customers were like the best customers you have now. Here's how you can make that happen...Take some time to analyze your current customers to determine what key traits they share - and why those traits make them ideal customers for you. Then revise your sales message to appeal
Options provide great position management and risk control potential when
using them to trade the market directionally. This goes beyond the simple
fact that a long position in a call or put option has an absolute maximum risk
equal to the cost of the option (plus commissions, of course). That, in
and of itself, is a very useful thing. What this article discusses,
however, are a couple of handy little things one can do while holding an option
position to maximize the return and keep the risk well constrained.Some of the simplest marketing tactics often produce the most profitable results. Here are 4 examples that have proven highly effective for any business.1. Focus on Your Best ProspectsImagine how profitable your business would be if more of your new customers were like the best customers you have now. Here's how you can make that happen...Take some time to analyze your current customers to determine what key traits they share - and why those traits make them ideal customers for you. Then revise your sales message to appeal
Roll Up/Down
Most traders are familiar with the concept of a trailing stop whereby one moves their protective exit as the market moves in favor of the trade. This is used to lock in profits. The same thing can be accomplished when one is trading options rather than the underlying. This is done by rolling one's position up or down strike prices depending on whether the trade is a long using calls or short employing put options.
Here's a recent example from the author's own trading.
A long position in Seagate Technology (STX) was initiated when the stock was trading at around 21.50 using the March 22.50 call options. They were purchased for $0.80. The market rallied over the next few weeks, eventually moving up above $24. At that point, a roll-up was executed by selling the March 22.50 calls at $2.60 and purchasing the March 25 calls at $1.40. This action served two purposes. The first is that it took $1.20 off the table, reducing the portfolio exposure and freeing up cash for use elsewhere. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it had no effect on the remaining upside potential for the trade. The two strikes would probably profit about the same from any further appreciation in the price of STX shares.
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more th
Make Lots More Money by Choosing the Right Affiliate Programs
If you want to make money on the internet, there are numerous lucrative affiliate programs that you can join for free.In basic terms, all you need to do when you join an affiliate program is add a special link containing your unique affiliate ID to your website or blog. Whenever someone follows that affiliate link from your website and makes a purchase, you are credited with a commission for that sale.Affiliate programs are good for you because you make money from your website visitors without having to worry about shipping and pa
constrained.If you want to make money on the internet, there are numerous lucrative affiliate programs that you can join for free.In basic terms, all you need to do when you join an affiliate program is add a special link containing your unique affiliate ID to your website or blog. Whenever someone follows that affiliate link from your website and makes a purchase, you are credited with a commission for that sale.Affiliate programs are good for you because you make money from your website visitors without having to worry about shipping and pa
Roll Up/Down
Most traders are familiar with the concept of a trailing stop whereby one moves their protective exit as the market moves in favor of the trade. This is used to lock in profits. The same thing can be accomplished when one is trading options rather than the underlying. This is done by rolling one's position up or down strike prices depending on whether the trade is a long using calls or short employing put options.
Here's a recent example from the author's own trading.
A long position in Seagate Technology (STX) was initiated when the stock was trading at around 21.50 using the March 22.50 call options. They were purchased for $0.80. The market rallied over the next few weeks, eventually moving up above $24. At that point, a roll-up was executed by selling the March 22.50 calls at $2.60 and purchasing the March 25 calls at $1.40. This action served two purposes. The first is that it took $1.20 off the table, reducing the portfolio exposure and freeing up cash for use elsewhere. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it had no effect on the remaining upside potential for the trade. The two strikes would probably profit about the same from any further appreciation in the price of STX shares.
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more t
A Job is Not a Job
It only happened on Mondays. Sometimes I escaped the unpleasant ritual. But, more often than not, right before boarding I threw up in the ladies room of the train station. It wasn't the commute I hated. It was the job. m the author's own trading.
A long position in Seagate Technology (STX) was initiated when the stock was trading at around 21.50 using the March 22.50 call options. They were purchased for $0.80. The market rallied over the next few weeks, eventually moving up above $24. At that point, a roll-up was executed by selling the March 22.50 calls at $2.60 and purchasing the March 25 calls at $1.40. This action served two purposes. The first is that it took $1.20 off the table, reducing the portfolio exposure and freeing up cash for use elsewhere. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it had no effect on the remaining upside potential for the trade. The two strikes would probably profit about the same from any further appreciation in the price of STX shares.
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more t
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more t
Roll Forward
One of the issues with options is the limited duration they provide for holding trades. If one is an intermediate to longer-term trader, this can be an important hurdle. That said, however, in a manner similar to the roll up/down, if one wants to extend the holding period of a position it can be done by rolling forward the expiration month.
Continuing with the STX example, we can look at rolling forward. That would be accomplished by going from the March contract to the June one. As of this writing, the March 25s are trading at $2.40 and the June 25s are at $3.60. There's the rub, though. Because of the longer time to expiration, the June contract is priced significantly higher. That is why a roll forward is often best accomplished with a roll up/down.
Consider the earlier roll-up in STX from the 22.50 call to the 25 call. If we were still in the former, and wanted to both roll forward and up, we could jump to the June 25 call. The current price on the 22.50 option is $4.10. With the June 25 at $3.60, we could accomplish both the roll up and roll forward and take $0.50 off the table. That is not quite as much as we accomplished with the roll up, but it does extend the time we could hold the position by three months. Whether that is worth the trade-off depends on the anticipated holding period for the trade.
The rolling of strike prices and expiration is something easily accomplished. The transaction costs for options trades have come down substantially for the individual trader in recent years. That opens up a great many possibilities for playing the market directionally and managing positions efficiently.
It only happened on Mondays. Sometimes I escaped the unpleasant ritual. But, more often than not, right before boarding I threw up in the ladies room of the train station. It wasn't the commute I hated. It was the job. m the author's own trading.
A long position in Seagate Technology (STX) was initiated when the stock was trading at around 21.50 using the March 22.50 call options. They were purchased for $0.80. The market rallied over the next few weeks, eventually moving up above $24. At that point, a roll-up was executed by selling the March 22.50 calls at $2.60 and purchasing the March 25 calls at $1.40. This action served two purposes. The first is that it took $1.20 off the table, reducing the portfolio exposure and freeing up cash for use elsewhere. It also locked in a profit of $0.40 ($2.60 sales price minus the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for the new 25 calls). At the same time, it had no effect on the remaining upside potential for the trade. The two strikes would probably profit about the same from any further appreciation in the price of STX shares.
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more t
Credit Repair - A Step-by-Step Guide
Credit worthiness is usually measured by your credit history, which represents your financial reputation among creditors. Failing to pay off your credit card debt, not paying off the minimum monthly amount, missing a payment or not making your payments on time can lead you on a path with apparently no return: adverse credit history.Because debt management is a process to reduce, and eventually erase, your outstanding credit card debt by dealing with creditors and managing your assets adequately, adverse credit history can be repaired and
ortfolio exposure and freeing up cash for use
elsewhere. It also locked in a profit of $0.40 ($2.60 sales price minus
the $0.80 purchase price for the 22.50 calls minus the $1.40 purchase price for
the new 25 calls). At the same time, it had no effect on the remaining
upside potential for the trade. The two strikes would probably profit
about the same from any further appreciation in the price of STX shares.Credit worthiness is usually measured by your credit history, which represents your financial reputation among creditors. Failing to pay off your credit card debt, not paying off the minimum monthly amount, missing a payment or not making your payments on time can lead you on a path with apparently no return: adverse credit history.Because debt management is a process to reduce, and eventually erase, your outstanding credit card debt by dealing with creditors and managing your assets adequately, adverse credit history can be repaired and
If the portfolio exposure was deemed acceptable at $2.60, an alternate course of action would have been to sell the March 22.50 calls and not take any money out, but rather roll it all in to the March 25 calls. For example, if the position was 10 options, selling the 22.50s would net $2600. That cash could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57). By doing so, one actually increases the upside potential for the trade substantially. Of course, the full position is at risk, meaning one could theoretically lose the whole $2600 invested, which is more t
Nevada LLC Operating Agreements
Nevada is considered a haven for business owners who want to create a new corporation or a limited liability company or LLC. The state of Nevada offers complete protection to the officials, agents and members of the LLC, in case of a lawsuit filed against them. In order to operate a limited liability company in Nevada, an operative agreement is necessary. The operating agreement defines the nature of business, general operation and conduct of the affairs, of the company. This agreement also outlines the voting powers of each member and the buy
action would have been to sell the March 22.50 calls and not take any money
out, but rather roll it all in to the March 25 calls. For example, if the
position was 10 options, selling the 22.50s would net $2600. That cash
could have been used to purchase 18 of the 25 calls ($2600/$140 = 18.57).
By doing so, one actually increases the upside potential for the trade
substantially. Of course, the full position is at risk, meaning one could
theoretically lose the whole $2600 invested, which is more than could have been
lost when the trade was first initiated.Nevada is considered a haven for business owners who want to create a new corporation or a limited liability company or LLC. The state of Nevada offers complete protection to the officials, agents and members of the LLC, in case of a lawsuit filed against them. In order to operate a limited liability company in Nevada, an operative agreement is necessary. The operating agreement defines the nature of business, general operation and conduct of the affairs, of the company. This agreement also outlines the voting powers of each member and the buy
Roll Forward
One of the issues with options is the limited duration they provide for holding trades. If one is an intermediate to longer-term trader, this can be an important hurdle. That said, however, in a manner similar to the roll up/down, if one wants to extend the holding period of a position it can be done by rolling forward the expiration month.
Continuing with the STX example, we can look at rolling forward. That would be accomplished by going from the March contract to the June one. As of this writing, the March 25s are trading at $2.40 and the June 25s are at $3.60. There's the rub, though. Because of the longer time to expiration, the June contract is priced significantly higher. That is why a roll forward is often best accomplished with a roll up/down.
Consider the earlier roll-up in STX from the 22.50 call to the 25 call. If we were still in the former, and wanted to both roll forward and up, we could jump to the June 25 call. The current price on the 22.50 option is $4.10. With the June 25 at $3.60, we could accomplish both the roll up and roll forward and take $0.50 off the table. That is not quite as much as we accomplished with the roll up, but it does extend the time we could hold the position by three months. Whether that is worth the trade-off depends on the anticipated holding period for the trade.
The rolling of strike prices and expiration is something easily accomplished. The transaction costs for options trades have come down substantially for the individual trader in recent years. That opens up a great many possibilities for playing the market directionally and managing positions efficiently.
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