StockTwits
07-16-2010, 08:40 AM
Milk Trader: Options For Sale (http://abnormalreturns.com/links/170136/visit) (www.milktrader.net)
by milktrader 30 minutes ago
I sold the Conoco Phillips (COP) August 50 put for $1.32. It is an expansion of a strategy I've been deploying all year with TLT. I call it Put Me First, Call Me Last for short. The basic idea: to start this game, you sell a put below the market. Then when the price sells off, you get assigned and become proud owner of 100 shares per put sold. Then you sell a call above the market. After the market rallies, you get your stock taken. It's a premium collection strategy at its heart. Because you're the seller, time decay is on your side. This means that if nothing happens, you're good. Ho hum, big deal, I'm happy.
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=07/16/2010#170136)
by milktrader 30 minutes ago
I sold the Conoco Phillips (COP) August 50 put for $1.32. It is an expansion of a strategy I've been deploying all year with TLT. I call it Put Me First, Call Me Last for short. The basic idea: to start this game, you sell a put below the market. Then when the price sells off, you get assigned and become proud owner of 100 shares per put sold. Then you sell a call above the market. After the market rallies, you get your stock taken. It's a premium collection strategy at its heart. Because you're the seller, time decay is on your side. This means that if nothing happens, you're good. Ho hum, big deal, I'm happy.
see story at Abnormal Returns site...(RSS feed) (http://abnormalreturns.com/links/index?date=07/16/2010#170136)