When the spot price decreases after I write a covered call is there a point at which I can nearly break even?
September 20, 2010 by admin
Filed under Option Trading
I’ve been looking at writing a covered call. If I do this and the low spot price I will be losing money since my accident? N est? losing value. It still? To kind of get the premium for writing the llamada.Si I understand things correctly, the price of the option? No purchase too? n go? decreasing during this time for two reasons: 1. the call be? m? s outside money2. the due date is aproximaEsto means to be? able to close the option? n for less money it receives? during the writing of misma.Lo I’m wondering is if the price of the option that you keep enough r falls? ask you can close the option? ny sell the stock before it has lost m? s of raw I received from the option? No writing in the first lugar.Supongo this rarely happens, if ever, but am not sure and I’m looking for m? s of an explanation? n c? esto.He will it work? do that esprecio break even stock – premium recibidaNo I’m sure by qu? I feel a duty? to be a balance point slightly above the cost of the option? n contained in too? n. Something comoprecio stock – premium received + the option price? N actualEstoy sure this all sounds silly to anyone who understands things better but please bear with me “I’m trying to learn here?. I’ll try to give an example of what I’m pensando.Supongamos the purchase price of the shares was $ 50 and premium is $ 5.Yo understand that when the price of the accident? n reaches $ 45 that the premium is lost . If this was the day you due to complete sense that this is the point of equilibrio.Sin However, if a? N is not d? To expiration, so you could? To cost $ 1 to close the sense that position? No balance will be staying at was $ 46. However, in 46 d? Here who will be staying to cost? Nm? S to close the position? N. . . I’m guessing these n? Mere chase each other constantly. Is there any way specs? Fica situations traders know how are you to limit your p? Loss? For example, if the trade purchase of $ 50 to $ 5 bonus was a real commerce? Spec strategies exist? Ficas suggestive selling before the equilibrium point to close the position? n instead of waiting until after? s the point of balance? I love? to see the pros and cons of doing either of those and learn m? s about it. Thanks!
Can somewhere point me to a good site that allows me to quickly find volatile stocks?
September 17, 2010 by admin
Filed under Option Trading
Please don’t respond with “just google it” or finance. google. com or some other financial website. I’ve already done that, but just like there are “most traded” or “biggest gainers/losers” I would like to see most volatile (over some time period).
I want to start doing some options trading (specifically using a “straddle” strategy) and this data would come in handy.
Only responses with “sources” please, thanks.
Forex: price of a point
How to work out price of a point on Forex








