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Teddi KnightKeymaster
I’m with IB (Interstellar … err… make that Interactive Brokers)
Their commissions for options are cheap but they vary depending on which exchange they wind up using. Just as an example, today I STO 5 AAPL Jul 31 120 puts. Commission was 3.97 for the lot. But I’ve paid as low as 2.50 for 5 AAPL and as much as 6.00.
If you wind up closing early and it’s trading at .01 or .02 the commission is usually minimum (under .10 for the lot).
For stocks it is a flat $5 regardless of size. Well, I’ve honestly never done any stocks more than 5,000 shares for some low priced stocks, so I don’t know about bigger volumes.
No fee at all for assignments. No fee if an option expires worthless.
Problem with IB is their platform sux. ToS/TD has a much better platform. I keep a (mostly inactive) small account there so I can access their trading platform.
I’d say that TD’s Cust Svc is better, but I’ve never had a problem with IB that Cust Svc couldn’t deal with.
Teddi KnightKeymasterIn my experience, most of the time the only thing that matters is the price at 4:00 day of expiration. I have been assigned occasionally early, but rarely.
Amy
Teddi KnightKeymasterpoojeet:
It can be a bit confusing, at first.
Just think about the (current) price of the stock vs your strike price. If the stock is above your short put, that means: if you are forced to take assignment (say at 50) but the price of the stock is higher (say 51), then you’re ahead of the game. Nobody will force you to take stock at 50 if he could sell it to somebody else for 51. Ergo, you won’t ever get an assignment if your (short) put is below the stock price.Remember: the current price will govern. So the price at expiration will be the determining factor.
Teddi KnightKeymasterHi Amy, thank you for the suggestions.
I wanted to check on the following – hope some kind souls can help.
If the share price falls below the naked put strike price and rebounds above again before the expiry, is there possibility that I can still be assigned the stocks if the share price remains above the strike until the expiry date? How is share assigned, only during the period when the share price is below strike price, once it crosses above strike price, do we escape? Thank you in advance. Cheers!
Teddi KnightKeymasterYou have two weeks. If we have an up day or two, you can reassess your positions to determine if you want to roll or stay. July is the best summer month, or so they say, so you might be ok, although WMT seems to be in death mode, and PKG??? what can I say. I have the $65 strike also. Gonna wait a while to see if it gets a bounce.
Amy
Teddi KnightKeymasterSTO CALLS….You recommended selling XBI 265 calls a while back.
Amy
Teddi KnightKeymasterSTX is a stock I personally wouldn’t give up on. Good dividend, good fundamentals, yes it is volatile, but the dividend is great while you wait, if assigned, and sell covered calls. I was down on a lot of my positions for July yesterday, but there are 2 full weeks left, and a lot can happen.
Just FYI, my recollection is that the market often has an upward bias the day before a holiday, and if today is up, then you will have at least two full up days to reassess positions.
I was assigned CVX last week, and sold CC on it for this week, and will continue to do that. No concerns about CVX unless they freeze the divvy which is unlikely. I will take assignment at $48 if assigned, and sell CC, collect the dividend, and my guess is that I will be out of the stock pretty quickly.
Of course I have been wrong before….ala XBI, my nemesis!
Just my 2 cents since you are a newbie….of course this market makes us all newbies every day!
Amy
Teddi KnightKeymasterI am a newbie here and STX was my first trade. I rolled down once, then yesterday after seeing another decline closed my STX July 17 $48 Put @ $1.10 at a loss. There is a lot to learn more, especially the repair strategies. Cheers!
Teddi KnightKeymasterOne more time—-> STO XBI JULY, STRIKE $165 @ 1.50
if the market goes, XBI will follow this time….hopefully.
Amy
Teddi KnightKeymasterHard to keep ahead of falling knife! STO AUG. STRIKE $45 @ 1.38
Will have to deal with earnings, but bad earnings seem priced in.
Amy
Teddi KnightKeymasterSTO JNJ strike $95, July 17, @ .70
Amy
Teddi KnightKeymasterThat turned out well thanks to Greece. Bought some Friday @ $17.50 will sell 7-10 $18.50 CC for $1.10
Teddi KnightKeymasterPKG STO July 62.5 Put @ 0.5 . The stock seems to be stabilizing. We’ll see.
Teddi KnightKeymasterSTO July 31 29.5 P @ 0.31
Teddi KnightKeymaster6/23 STO STX July 17 $50 put @ $.55
6/25 BTC STX July 17 $50 put @ $.80
6/25 STO STX July 31 $49 put @ $1.10Rolled my option down $1 and out two weeks for a profit of $.30
Teddi KnightKeymasterTeddi KnightKeymasterJohn
I have also been selling bi-weekly on AAPL 135/140 call spread @0.40 or more two to 4 weeks out when the stock touches 128 or more. On the put side, I have been using 120/115 for similar premiums if the stock is below 126. How have you been managing your strikes and premiums?Teddi KnightKeymasterDennis
Does it make a difference if it is GOOGL? I have never followed their split.regards
SadaTeddi KnightKeymasterI am waiting on it too, I was too conservative at the past, only wrote 500P for $2~$3, 525 strike sounds better.
Teddi KnightKeymasterWith weekly options there are some choices here if it drops to $50.
Sell the $54CCs. Pick an expiry that gives you a decent return, or if it hangs around $50 wait until Wed and sell the Friday $52, this is under your buy price but you may always roll the call or if called right at $52 buy it back at $52 and do a $54 buy/write or $54 put sale. Your original buy in price was $52.36Teddi KnightKeymasterWent the ITM covered call route on this one. Bought stock @ 67.25.
STO the Aug 21 65 call for $3.20. Expect to be called early for the dividend around 8-12. Return isn’t great even with an early call (10.6%), but I like the downside protection and opportunity to finesse the call if the stock weakens further on earnings.Teddi KnightKeymasterXLU and DUK down more last few days, SO also hit year low, any one still consider selling puts against utilities?
Teddi KnightKeymasterI am wondering about DD as well.
Teddi KnightKeymasterI must be doing something wrong. length set at 14, percent at 5. 3 month daily chart. strikes below the lower band seem to be too far OTM for any premium. using PEP July 2 as an example you’d have to sell 90 put 6-11 cent bid / ask
Teddi KnightKeymasterTeddi,
I purchased 5 Aug 13 VIX calls yesterday for 2.70 when it was at 12.19. Do you think as I do that it is time to start nibbling on some again? The same calls are down to 2.55 today.–
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