Monday, February 6, 2012

Question about Monthly Income Trading

Q: I have read the special report and if I’m interpreting it correctly we have been in a low volatility environment for the past few months, but appear to be entering a period of increased volatility.  So put debit spreads seem to be in order along with vertical call spreads for credit at areas of [...]

Question about buying calls – synthetic stock

Q: I was playing around with SDS and noticed something interesting.
If I buy a call (and not sell a put) I am limiting my loss to the premium paid yet am able to participate in unlimited gain. This way I don’t have to mess with buying the actual stock to set a stop.
I guess I [...]

Questions about Inside Days

Q: If a trade still may be worth placing on Day 3 and your rule states that it should be closed out at the end of that day (or the open of day 4), is there a certain time of the day on Day 3 after which you wouldn’t make the trade because there’s not [...]

Bottom fishing or Covered stock?

Q: I am a member of the DMA and had some questions regarding SRS. I want to enter this trade but do not know if I should be bottom fishing it or buying a covered stock, due to the following:
- Bottom Fishing: negative skew / am considering selling the Oct 9 Put / buying [...]