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.
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.