Money and Finance
I really like selling both puts as de facto limit orders and calls. For some more information on my option strategy or general information check here and here. Currently one call or put option covers 100 shares. This means if I want to sell a $500 put option on a company like Apple (AAPL) I would need $500 * 100 shares = $50,000 to be able to sell a cash secured put. Considering that's over half of my portfolio I don't think I'll be doing that anytime soon. This has been the biggest burden with options trading, the cash outlay if you want to avoid potential margin costs is very high for some of the high priced (nominal not valuation) stocks.
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- Option Expiration And A New Option Position
It's time to get caught up on some option moves that have gone through in the past week or so. I had a call option get executed on January 18th and purchased 100 shares of Bank of America. Also last week I sold a call option on Halliburton. I'll...
- Expiration Friday
The third Friday of July came and went meaning it's option expiration time. Three different options expired on Friday with my 2 call options on Halliburton (HAL) being in the money and my put option on Clorox (CLX) expiring out of the money. So...
- Recent Transaction
With today being expiration Friday, I figured we'd revisit the call options that I sold on 200 shares of Bank of America back in mid-August. I originally performed a buy-write of 200 shares which involves purchasing the shares and simultaneously...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...
Money and Finance
Mini-Options, a Game Changer?
I really like selling both puts as de facto limit orders and calls. For some more information on my option strategy or general information check here and here. Currently one call or put option covers 100 shares. This means if I want to sell a $500 put option on a company like Apple (AAPL) I would need $500 * 100 shares = $50,000 to be able to sell a cash secured put. Considering that's over half of my portfolio I don't think I'll be doing that anytime soon. This has been the biggest burden with options trading, the cash outlay if you want to avoid potential margin costs is very high for some of the high priced (nominal not valuation) stocks.
Read more »
- Option Expiration And A New Option Position
It's time to get caught up on some option moves that have gone through in the past week or so. I had a call option get executed on January 18th and purchased 100 shares of Bank of America. Also last week I sold a call option on Halliburton. I'll...
- Expiration Friday
The third Friday of July came and went meaning it's option expiration time. Three different options expired on Friday with my 2 call options on Halliburton (HAL) being in the money and my put option on Clorox (CLX) expiring out of the money. So...
- Recent Transaction
With today being expiration Friday, I figured we'd revisit the call options that I sold on 200 shares of Bank of America back in mid-August. I originally performed a buy-write of 200 shares which involves purchasing the shares and simultaneously...
- Option Strategy
I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time. 1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for...
- Put Options Explained
A lot of people hear the word options with respect to stocks and think it's a high risk venture. While options are for everyone I feel they definitely have a place in a portfolio. I prefer selling put options to call options which I will explain why...