Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Feb 21, 2018 3:16:06 GMT -8
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Since84
Moderator
To infinity and beyond!
Posts: 3,933
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Post by Since84 on Feb 21, 2018 5:48:23 GMT -8
US Markets and the FTSE have turned GREEN. Hopefully it bodes well for the day.
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Post by tuffett on Feb 21, 2018 6:43:00 GMT -8
I’m quite happy if AAPL continues range bound above the 200MA. A break before the next grind up allows for more effective buybacks.
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bud777
fire starter
Posts: 1,353
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Post by bud777 on Feb 21, 2018 7:40:06 GMT -8
I wrote a while ago about the idea of selling LEAPS that are two years out and then rolling them each year. For example, Last October I sold 100 calls due in January 2020, then this October, I will sell 100 contracts due in 2021 and use the proceeds to buy back the 2020's. In effect I am harvesting the time value of the option with very little risk of being called away.
If I graph the price difference between the Jan 2019 and Jan 2020 LEAPS at different strikes, I see a U shaped curve with the peak ATM. This surprised me since the graph should not reflect any intrinsic value. I expected something flatter. Can anyone explain why the time value follows this curve? Remember that I am comparing two years out to 1 year out so the Black-Scholes curve is still fairly flat.
I am doing this with covered calls, but given the minimal risk of them being called, I don't see why people don't do this with naked calls as well.
Anybody? Bueller?
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Post by macster on Feb 21, 2018 12:47:27 GMT -8
Not a surprising dump. It just happens right? sarcasm.
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Post by CdnPhoto on Feb 21, 2018 13:01:17 GMT -8
What the hell just happened? a $3 drop in the last few minutes? Similar to yesterday too.
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Post by dreamRaj on Feb 21, 2018 13:23:23 GMT -8
Not a surprising dump. It just happens right? sarcasm. Yep. Happens 'especially' with our delicate darling. Looking forward to those rare days when AAPL goes up by ~$3 while the rest of tech is flat.
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Post by PikesPique on Feb 21, 2018 13:30:22 GMT -8
Markets rolling over and playing dead at the close. Due to fed meeting?
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Post by dreamRaj on Feb 21, 2018 13:37:41 GMT -8
What the hell just happened? a $3 drop in the last few minutes? Similar to yesterday too. In fact, if you compare charts of Mon, Tue, and today, AAPL has consistently and very closely followed the Dow - shown strength during mid-day and fallen in the final hour.
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