Characteristics of a good and Low risk Deep ITM covered call
FK,
Your out of my league, Your still on the milk . Learn before you earn!
We all agree that doing CC [otm,itm,atm] is a waste of time at £1000 investment! correct guy's
Now lets talk sense: on a £500K investment. doing this on CC.
Whats your protection for the down side. Please talk sense.
My protection on this is almost 100% perfect [for the down side] Also I get to keep the stock through-out the year and keep taking prem's. Without using the Call premium as protection. Calls are all done at OTM through out the entire yr.
bull
Your out of my league, Your still on the milk . Learn before you earn!
We all agree that doing CC [otm,itm,atm] is a waste of time at £1000 investment! correct guy's
Now lets talk sense: on a £500K investment. doing this on CC.
Whats your protection for the down side. Please talk sense.
My protection on this is almost 100% perfect [for the down side] Also I get to keep the stock through-out the year and keep taking prem's. Without using the Call premium as protection. Calls are all done at OTM through out the entire yr.
bull
bulldozer said:
thanks mate!!
As I said mate I don't know what I've said to agitate you but admittedly I am fairly new to the game but by the looks of things even the 'veterans' don't know too much.
I never said how much capital I'm trading with....and that wasn't the point of the thread either. The point was that ITM covered calls give more downside protection that OTM ones, and you must agree with that...surely?
Bull; I must have mist something.
Tell me from where your protection comes if it does not come from the premium of your ATM call. You also wrote that you are almost 100% protected.
We areall eager to know that as if you have a way to be 100% protected then you are right to sell ATM instead of ITM as the return is greater.
Thanks for a clear answer. Dont just tell me you simply let the stock to go up, that not a protection that's just a wish.
Tell me from where your protection comes if it does not come from the premium of your ATM call. You also wrote that you are almost 100% protected.
We areall eager to know that as if you have a way to be 100% protected then you are right to sell ATM instead of ITM as the return is greater.
Thanks for a clear answer. Dont just tell me you simply let the stock to go up, that not a protection that's just a wish.
FK,
I'm not agitated at all. If you had any wisdom you would know that I'm still teaching you. And all for FREE.!!
Why are you agitated? You are getting FREE knowledge from someone who is old enough to be your dad and been doing Options for many years! and handling 7 accounts using 3 UK brokers.
Paris,
Where is your "HEDGE/protection" if the stock falls 50%? on £500,000 investment? Please dont insult yourself by saying what I think you are going to say.
Bull
I'm not agitated at all. If you had any wisdom you would know that I'm still teaching you. And all for FREE.!!
Why are you agitated? You are getting FREE knowledge from someone who is old enough to be your dad and been doing Options for many years! and handling 7 accounts using 3 UK brokers.
Paris,
Where is your "HEDGE/protection" if the stock falls 50%? on £500,000 investment? Please dont insult yourself by saying what I think you are going to say.
Bull
FK,
Quote>>"Mate....you aren't teaching anything here......you keep saying that you have a protection...then please teach me.......where is the protection?????..... I would truly appreciate that"
=====================================================================
IF, as you say You have NOT learned anything from my posts? PLEASE DONT READ THEM AND DONT ASK ME ANYTHING IN FUTURE. ALSO IF YOU SEE ANY POST BY ME IN OTHER FORUMS PLEASE IGNORE THEM.
ON A PARTING NOTE, NO HEDGE FUND MANAGER IS GOING TO REVEAL HE'S SECRET STRATEGY ON HEDGING/PROCTECTION.
I truly wish you all the success in the world with your Option trading. I also want to apologise if any of my comments/advice has offended you in anyway.
bull
Quote>>"Mate....you aren't teaching anything here......you keep saying that you have a protection...then please teach me.......where is the protection?????..... I would truly appreciate that"
=====================================================================
IF, as you say You have NOT learned anything from my posts? PLEASE DONT READ THEM AND DONT ASK ME ANYTHING IN FUTURE. ALSO IF YOU SEE ANY POST BY ME IN OTHER FORUMS PLEASE IGNORE THEM.
ON A PARTING NOTE, NO HEDGE FUND MANAGER IS GOING TO REVEAL HE'S SECRET STRATEGY ON HEDGING/PROCTECTION.
I truly wish you all the success in the world with your Option trading. I also want to apologise if any of my comments/advice has offended you in anyway.
bull
Paris,
You said you been doing options since 1985. Would you really reccommend the "CC Itm call" with so little profit potential to people on this forum. How much or how many THOUSANDS of £ would they need to start trading profitably. Most people who are new to options will only put around £3,000. Do you really think with 3K is right to do this type of trade.? You know where i stand on this, for me its a non starter.
You also said you AGREED on ONE point about my comments, I then ask'd you is there anything else you agreed about my comments, would you please answer that question when you have time,.I strongly believe the viewers would also like to know.
You may be aware there has been over 500 viewers on this thread, would you PLEASE keep them all informed how your trade is doing and what kind of returns its made after deducting all costs.
REMEMBER IT WAS YOU WHO SUGESTED THIS TRADE NOT ME! PLEASE TELL YOUR VIEWERS HOW THE "CALL" PREMIUMS TAKEN WILL PROTECT YOUR FUND, IF THE STOCK FALLS BY 25-50 % ?? THERE IS NOT ENOUGH PREMIUM FOR IT.
Good luck friend and i truly wish you every success in your trading.
bull
You said you been doing options since 1985. Would you really reccommend the "CC Itm call" with so little profit potential to people on this forum. How much or how many THOUSANDS of £ would they need to start trading profitably. Most people who are new to options will only put around £3,000. Do you really think with 3K is right to do this type of trade.? You know where i stand on this, for me its a non starter.
You also said you AGREED on ONE point about my comments, I then ask'd you is there anything else you agreed about my comments, would you please answer that question when you have time,.I strongly believe the viewers would also like to know.
You may be aware there has been over 500 viewers on this thread, would you PLEASE keep them all informed how your trade is doing and what kind of returns its made after deducting all costs.
REMEMBER IT WAS YOU WHO SUGESTED THIS TRADE NOT ME! PLEASE TELL YOUR VIEWERS HOW THE "CALL" PREMIUMS TAKEN WILL PROTECT YOUR FUND, IF THE STOCK FALLS BY 25-50 % ?? THERE IS NOT ENOUGH PREMIUM FOR IT.
Good luck friend and i truly wish you every success in your trading.
bull
Last edited:
Bull,
I wrote that with a Deep ITM CC with a protection of 30% I will lose money.
But I asked you if with your ATM or OTM CC you will or not lose money if the stock drop 50%. You did not answer so I will answer for you;
Yesyou will lose for SURE. I will not lose if the stockdrop 30% BUTyouwilllose if the stock lose 30%...
If you dont agree with that youdidnot understand CC.
Nowhaving 1000£ 3000£ or 500000£ willnot change anything if the stock decide to sink 50%,right ?
I never said I was trading option since 85 just investing in stocks, but I wrote I was writing CC since 2 years.
Your almost sure protection was not disclosed so I assume youdont have, at least not from the premium of the ATM CC.
Yes I agree with you on a second point, I would not recommand someone with 3000£ to trade deep in the money CC, not because they are risky (in fact they are the less risky) but because of the too low returns that will just cover brokers commissions.
I wrote that with a Deep ITM CC with a protection of 30% I will lose money.
But I asked you if with your ATM or OTM CC you will or not lose money if the stock drop 50%. You did not answer so I will answer for you;
Yesyou will lose for SURE. I will not lose if the stockdrop 30% BUTyouwilllose if the stock lose 30%...
If you dont agree with that youdidnot understand CC.
Nowhaving 1000£ 3000£ or 500000£ willnot change anything if the stock decide to sink 50%,right ?
I never said I was trading option since 85 just investing in stocks, but I wrote I was writing CC since 2 years.
Your almost sure protection was not disclosed so I assume youdont have, at least not from the premium of the ATM CC.
Yes I agree with you on a second point, I would not recommand someone with 3000£ to trade deep in the money CC, not because they are risky (in fact they are the less risky) but because of the too low returns that will just cover brokers commissions.
Paris,
I thought you was doing options for 20 yrs. I started in Options in 1984 and stocks/shares since the 70's.
You dont know half of whats needed to be known about trading Options. You dont even know the "greeks" especialy the DELTA and the THETA. You dont even know the Maths in Options or the %. You dont even know how to HEDGE the STOCK.
IF your stock drops by 20% with a CC ITM, on a £5,000 stock holding, you will lose a minimum of £400 + costs. Plus a further loss 5-15 pts. Check it out with your broker/brokers. The best FREE advice I give you is put the dosh in the bank.
Do you know where the LOSS of 5-15 pts comes from?
I thought you was doing options for 20 yrs. I started in Options in 1984 and stocks/shares since the 70's.
You dont know half of whats needed to be known about trading Options. You dont even know the "greeks" especialy the DELTA and the THETA. You dont even know the Maths in Options or the %. You dont even know how to HEDGE the STOCK.
IF your stock drops by 20% with a CC ITM, on a £5,000 stock holding, you will lose a minimum of £400 + costs. Plus a further loss 5-15 pts. Check it out with your broker/brokers. The best FREE advice I give you is put the dosh in the bank.
Do you know where the LOSS of 5-15 pts comes from?
Last edited:
FK,
So you think £100 max - costs is good return on a £5,000 investment and having no protection on your stock is worth doing?
The VERY first thing you need to learn in Option is: Protect your holding asset!!
This is FREE teaching/advice! Put your money as I said before in Premium bonds. Again free teaching/ advice!
Check out Channel 4 tex page 539. You may one day thank me for this Tip.
bull
We need losers in Options in order to have WINNERS!! This is not ment as an insult! its just a little warning about the TRUTH in Option trading.
So you think £100 max - costs is good return on a £5,000 investment and having no protection on your stock is worth doing?
The VERY first thing you need to learn in Option is: Protect your holding asset!!
This is FREE teaching/advice! Put your money as I said before in Premium bonds. Again free teaching/ advice!
Check out Channel 4 tex page 539. You may one day thank me for this Tip.
bull
We need losers in Options in order to have WINNERS!! This is not ment as an insult! its just a little warning about the TRUTH in Option trading.
Paris,
I posted this yesterday at 09:01am, Do you agree with all of it? Do you understand the bit where it says:- 5-15 pts, lets say 10 pts= ? If you do would you like to xplain? I also gave a clue.
Lets work on the scenario you put forward:
Stock at 500p, strike 450, prems 60 pts.
Now you need to buy 1000 [one thousand shares at a cost of £5,000] correct?
Now you can ONLY write one Call with that [£5,000] holding. correct?
Now you are taking in 60 pts=£600 on your holding strength of £5,000. correct?
Now stock drops by ONLY 20% to 400p. Your holding stock now worth £4,000. correct?
Now you get panic attack, blood presure up, heart beat races, cant sleep at night or day, and still you worry on the stock falling further.
Now you start to think what IF the stock held out at 500p and got assigned, I would have made 10 pts minus commisions on trade including assigmts costs, your left with 8 pts [or less] =£80 in one month on a investment of £5,000. [ is this a good investment plan? £80 profit on 5K ]
Now the stock is at 340 and you have decided this is a "bad trade" and you close out the whole thing. What are your loses? including costs? [ are U thinking? ]
Your loss is now 100 pts + costs. correct?=£1,000 + costs lets say £50 + a futher 5-15 pts, lets say 10 pts= total £1,150-00 correct? all this risk for a potential gain of £ 80. [novice stuff] Even TEN winning trades minus costs wont save you!
Now what if the investment was at £500K? What would you do? [facing a loss of 20-30 %]
Now how many Winning trades at_____ would you need to B-Even?
I can almost read your reply
Here is a CLUE to your next question: Found in these 3 words 3-4-4
bull
--------------------------------------------------------------------------------
I posted this yesterday at 09:01am, Do you agree with all of it? Do you understand the bit where it says:- 5-15 pts, lets say 10 pts= ? If you do would you like to xplain? I also gave a clue.
Lets work on the scenario you put forward:
Stock at 500p, strike 450, prems 60 pts.
Now you need to buy 1000 [one thousand shares at a cost of £5,000] correct?
Now you can ONLY write one Call with that [£5,000] holding. correct?
Now you are taking in 60 pts=£600 on your holding strength of £5,000. correct?
Now stock drops by ONLY 20% to 400p. Your holding stock now worth £4,000. correct?
Now you get panic attack, blood presure up, heart beat races, cant sleep at night or day, and still you worry on the stock falling further.
Now you start to think what IF the stock held out at 500p and got assigned, I would have made 10 pts minus commisions on trade including assigmts costs, your left with 8 pts [or less] =£80 in one month on a investment of £5,000. [ is this a good investment plan? £80 profit on 5K ]
Now the stock is at 340 and you have decided this is a "bad trade" and you close out the whole thing. What are your loses? including costs? [ are U thinking? ]
Your loss is now 100 pts + costs. correct?=£1,000 + costs lets say £50 + a futher 5-15 pts, lets say 10 pts= total £1,150-00 correct? all this risk for a potential gain of £ 80. [novice stuff] Even TEN winning trades minus costs wont save you!
Now what if the investment was at £500K? What would you do? [facing a loss of 20-30 %]
Now how many Winning trades at_____ would you need to B-Even?
I can almost read your reply
Here is a CLUE to your next question: Found in these 3 words 3-4-4
bull
--------------------------------------------------------------------------------
Similar threads
