Delta Neutral Trading

Hi guy's,

Thanks for being patient with me and thank you for all your help.

I like to work my loss and gains on points for £'s and not so much on leverage and %

I will explain it like this:

If market expires at 4490 this will be the outcome: [am I right?]
No 1. Loss will be the difference btween the expiry and strike = Loss 185 [£1,850] X 5 =£9,250.

No 3. Will be Loss 95 [£950] X 20= £19,000? approx

No 2. No loss and I get to keep all profits?

If the markets expiere above 4675 this will make all THREE winners. But if markets drops by 200 points my position will still show a lower price than the other two and also the margin will be increased for the other two, cause my position is still far out [OTM] with the lowest strike.
If i chose number one and three and if i could not pay the extra margin i would be closed out bfore expiry day.

Bull,
I think i have found the stock, is it Biogen?
What would i do? I would buy a combination of OTM and ATM CALLS two or three months out and cash in on 50 % profit bfore expiery day.Or close half position and leave the other half run a few more days.

Profitaker,
Thanx also for posting ur views.

Roger,
Thanx for posting these examples. I thought you askd me to pick one from the three i felt most confortable with. I do agree the returns are low for the risk. I still feel more confortable with number 2. But like i said, i would not do more than ONE contract to start with.
Could you please send me some Delta neutral trades. I would like to work on them at the week end.

Thanx again guy's and i am truly gratefull 4 ur help.
 
Profittaker,

Perhaps when i have increased my account by 50 % i will do a combination of OTM and ATM to bring in more premium like you said.

Many thanx
 
Paddy,
Yes, its Biogen. It closed UP over 6%

BIOGEN
41.26 $
Trade Time: 9:00PM
Change: +2.61 (+6.75%)
Prev Close: 38.65
Open: 39.99
Bid: 41.27 x 100
Ask: 41.41 x 900
 
Biogen is a great stock. A real case study

We (option writers) can all ask ourselves not what we would do with biogen today or yesterday but what would we have done if we had sold our puts on the dip last thursday?
 
BIOGEN IDEC [BIIB]

Gareth,

Bought the July 55 Calls at 75.

Hoping for the stock to pick up in the next few weeks. I think the Bargain hunters will push it to $43 soon. Now trading at $40.88
 
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Great Bulldozer,

I'm pleased for you. I do know the symbol for Biogen, I'm a full time US Stock trader so I knew about it pretty early on Monday. You've got loads more experience in Options than me I'm sure and your position is probably a great one. I've only recently started dipping my toe in with selling some index options. What I personally have done is added Biogen to my list of situations to stress test any strategies I may develop in the future for individual stock options (let alone my regular living of swing trading where I hold securities overnight). I like to try to avoid waking up one morning out of business.

Best Regards

Gareth
 
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