Bought 7 blocks at 26.77, and wrote 700 Jan 25 calls at 2.11/contract for an intrinsic value of .34/share times 70,000 shares.  This means that by Jan expiration, if INTC is above 25/share, I’ll pocket .34/share and the 70,000 shares will get taken away at 25.00.  So, my net profit will be .34/share in little […]

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Writing an option, be it a call or a put, is different than purchasing.  The fundamental difference in writing an option is that the decay in time value on the option works for you and not against you.  For example, when you buy a call, you’d hope to sell it for a profit (higher than […]

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Team,
This entire week has been very weak in trading volume.  Most traders are on an extended holiday vacation.  However, this will change next week as traders come back to ascertain a slew of economic indicators, most importantly the highly watched unemployment numbers due next Friday.
I expect volatility to cause wild swings as portfolio managers adjust […]

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Added 1 block at 27.09 to my core holding, bringing the total to 28500 shares.  On today’s purchase, I wrote 100 Jan strike 25 calls at 1.50/contract– which in my opinion is very rich in premium.  I’m very adamant that the shares will close above 25 by Jan expiration, thus leaving me with a nice […]

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Team, as the market makes an intra-day bottom, DDM has caught my attention.  I’m particularly impressed with the Jan strike 87 calls which are paying 5.00/contract.  I wish if the index was heavily traded like the rest of the indexes so i can write calls in the masses!!  But, for those with accounts 15 to […]

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