I sent some good money after bad, and picked up a little more Sandvine. I also bought RIM at $139, and MFC at $38. I’ve been patiently trying to sell some puts on HXU.TO, in order to get assigned, but nobody has hit me, and I got to believe it’s hitting a short term peak. I just want a couple days of red, in a row, and i’ll be long.
I also got IB finally funded. I only funded the minimum, $10K, because I’m just learning the software. Trying out my account, I wrote a single put on SSO, $75, expiring tomorrow. Yah, I know, it’s only ~$50. But I was playing with the cool VOL (volatility) order type.
Check this math out. I put up $1900, and hypothetically make $50 minus the $1 in fees. *If it expires worthless* that’s a smooth 2.5%, or 36% per year pre-tax. The cool part is, if you could pull that off once a month - your money is only on the line 12 days per year…all you need is the balls/stupidity to risk getting assigned. But, I kind of want a little SSO so I can trade the calls on it.
May 18th, 2008 at 9:36 pm
wow, very interesting idea. you would think that no one would be idiotic enough to assign you when its trading above 75.
you gonna try this again next month? i really think you should. and, if its in a stock you already want to own i think its definitely worth a shot.