|From: Bender24 (Rep: 81)||Date: 2012-02-21 12:08:06|
|Forum: Writing Options - Thread #673363389 - List FAS msgs||Msg #213 - Part 1/4 (Rec: 0) |
|From: grdngkko (Rep: 40) reply to Bender24||Date: 2012-02-24 20:33:14|
|Forum: Writing Options - Thread #673363389 - List FAS msgs||Msg #222 - Part 3/4 (Rec: 0) |
|I wonder if and when you will ever get assigned on an option, lol! Most of my options expire worthless, but in the past I have been assigned on IWM & USO. Will we ever get a correction? Pretty steady climb past 3 months but the last 3 weeks there is a tight range in IWM & FAS. Will it be a breakout or a breakdown? |
| Reply to Bender24 - Msg #221 - 02/24/2012 16:47|
|From: Bender24 (Rep: 81) reply to grdngkko||Date: 2012-02-25 08:01:24|
|Forum: Writing Options - Thread #673363389 - List FAS msgs||Msg #223 - Part 4/4 (Rec: 0) |
|That is the ultimate question for me, when will assignment happen...I was assigned three times late last year in FAS (before it's reverse split). Assigned all three times at 12, and was able to sell all at 13 each time. |
I'm expecting a correction, just not sure when, which will likely get me assigned for my riskier trades, which I've tried to stick with about a 10% difference in current and strike price for weekly options. The premiums haven't been as good, was getting about 4% a month, easily, now I'm shooting for more like 2%. Still have a small amount that I'm trying to get a higher % return with, but am managing the risk a bit more now, still with a kick-azz return though.
If I ever get assigned, and I know it'll happen sooner or later, I just try to pick the next highest strike and write calls there. Rinse repeat until they are called away. If the stock price drops rapidly, I'll calculate the breakeven price, and write calls above that, so I can at least have a winning trade. Then reset writing puts again at the lower prices...that's my trading plan, essentially.
Curious about writing options? Come join me...
| Reply to grdngkko - Msg #222 - 02/24/2012 20:33|
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