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Options Discussion

  • #1
  • First Post: Jul 7, 2009 11:22pm Jul 7, 2009 11:22pm
I think we should have options discussion, cause i'm just learning about since last week.

I'm curious about something. I read about the covered call strategy. I'm wondering if it's the same exact thing to buy the stocks and buy puts at the same time. Cause in both situations i long stocks and have options as a upside ceiling? i hope i make sense. except If i buy put instead of selling call, my risk is capped.
  • #2
  • Jul 8, 2009 10:11am Jul 8, 2009 10:11am
wow nobody's interested?
  • #3
  • Jul 8, 2009 10:28am Jul 8, 2009 10:28am
Well, it is called Forex Factory... Maybe there's an Options factory?
  • #4
  • Jul 9, 2009 12:04am Jul 9, 2009 12:04am
Quoting Ronald Raygun
Well, it is called Forex Factory... Maybe there's an Options factory?
NOt really, but next best thing:

http://www.optionetics.com/forums/

Regards

Forex37
  • #5
  • Jul 9, 2009 12:51am Jul 9, 2009 12:51am
Quoting Forex37
NOt really, but next best thing:

http://www.optionetics.com/forums/

Regards

Forex37
Thx for the link, as far as recall they also having workshop. I don't know if it's still available or not nowadays.
  • #6
  • Jul 9, 2009 2:15am Jul 9, 2009 2:15am
Sorry for the late response. just saw this. A covered call is not the same as buying stock and long puts. A covered call is buying stock and writing a call. this will reduce your cost of buying the stock. WARNING: this is a limited profit, unlimited risk strategy as your upside is capped but you double your risk on the downside, I don't know why anyone would try this. Buying stock and long put on the other hand is a limited risk and unlimited profit strategy known as a synthetic straddle.
  • #7
  • Jul 9, 2009 10:58pm Jul 9, 2009 10:58pm
Quoting lordant6th
Sorry for the late response. just saw this. A covered call is not the same as buying stock and long puts. A covered call is buying stock and writing a call. this will reduce your cost of buying the stock. WARNING: this is a limited profit, unlimited risk strategy as your upside is capped but you double your risk on the downside, I don't know why anyone would try this. Buying stock and long put on the other hand is a limited risk and unlimited profit strategy known as a synthetic straddle.
ah, i knew that was a strategy. thanks
  • #8
  • Last Post: Jul 12, 2009 3:47pm Jul 12, 2009 3:47pm
Quoting hilmy83
ah, i knew that was a strategy. thanks
Check out discussion about binary options:
http://www.forexfactory.com/showthread.php?t=173735
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