Comments on: Calculating the Greeks Using an Options Calculator https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/ Learn how to invest by selling stock options. Wed, 18 Nov 2015 11:00:00 +0000 hourly 1 By: Glenn https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24866 Wed, 18 Nov 2015 11:00:00 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24866 Hi

I wondered whether there is anyone based in the UK and trading US options that has a good handle on how to file for Capital Gains Tax in the UK? Reading the information available on the internet or the Tax office in the UK – well there is hardly any information. The worst case scenario I have heard is that each transaction needs to be base lined at the equivalent pound value on the day of the sale – hence one needs to access the $/£ conversion rate (which is available – but that’s a lot of work). The other option I have heard is that one basically takes the value of the account at the start and end of the financial year and report the gain or loss as one transaction. Does anyone have a better view for the UK. Oh yes – hats off to this amazing source of information.

]]>
By: Nate https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24446 Fri, 02 Oct 2015 19:26:48 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24446 In reply to Alan Ellman.

Jay,
I am on the fence too. If the markets are going up its a great time to buy because we are near the support level/double bottom. But on the other hand if markets break support….

Do you have a book or two to recommend on your credit spreads technique? Actually last night I was considering purchasing “The Monthly Income Machine” by Lee Finberg and it made me think of what you do. The price has me debating the purchase.

]]>
By: Jay https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24445 Fri, 02 Oct 2015 19:10:20 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24445 In reply to Alan Ellman.

Nate,

Thanks for the reply. I like your idea of using OTM cash secured puts to get back into the market in lieu of outright buys. My timing is not so good to fear missing a run up! And the stocks I buy and use for options writing are beta neutral big names with dividends I plan to hold and “portfolio over write”.

If I buy a higher beta break out type stock in uptrend it is for appreciation. So as is said many times in our community “the risk is the stock, never the option sold.”

What guides me more is my sense of the overall environment for stocks. I have been doing fine in the volatile period selling weekly credit spreads outside R2 or S2 Technical levels, closing and rolling out if needed. I’ll always do those as base income generation.

As for new equity positions I am still on the fence….- Jay

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24444 Fri, 02 Oct 2015 10:59:46 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24444 In reply to Alan Ellman.

Nate,

Just a heads-up: This is a 3-day event where I am an invited speaker by the National Association of Individual Investors. This is their main national conference where they charge a fee of $395 to get in:

http://www.aaii.com/conference/schedule

My presentation is Sunday morning from 8:30 to 9:45.

Alan

]]>
By: Nate https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24437 Fri, 02 Oct 2015 06:00:49 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24437 In reply to Alan Ellman.

Alan,

That indeed would have been an opportunity lost. The more practice the better.

Sounds great! I’ve marked the date. I plan on making it over there. I live under two hours from there in Southern Utah. It’s a much easier trip than going to the east coast.

It will be the nice to meet the man behind the books, blog and the BCI method. I look forward to it.

Nate

]]>
By: Nate https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24436 Fri, 02 Oct 2015 04:53:06 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24436 In reply to Alan Ellman.

Jay, I’ll throw an idea out there about buying again.

What about selling cashed secured puts OTM on the stocks you want to get your hands on? This way you aren’t buying at current price and if there is another leg down you get a little premium plus purchase the stock at the lower price. Not bad.

Ok, after selling the put, What if the price starts going up and you think it will continue and you don’t want to miss the boat? Since the stock price has risen your put can be bought back at a lower price then go ahead and buy the shares you like . You get to keep the majority of the put premium and you feel more confident about entering the position because you have more confirmation of continued price appreciation.

What if the price appreciates and you buy the put back and then buy the stock only to see it depreciate rapidly? Well that is part of the difficulty of market timing and good luck to you! Haha. 🙂 …. or you could rapidly sell a covered call.

Good luck out there.

Nate

]]>
By: Alan Ellman https://www.thebluecollarinvestor.com/calculating-the-greeks-using-an-options-calculator/#comment-24432 Fri, 02 Oct 2015 00:20:23 +0000 http://www.thebluecollarinvestor.com/?p=12703#comment-24432 In reply to David.

David,

A couple of points here:

1- If you decide to roll down, there will be a time value premium that will lower your cost basis. So factor that into your decision.

2- Have a look at the performance of the stock in relationship to the overall market. I am more inclined to sell rather than roll down if under-performing.

3- We must always close the short options position before the long stock, if selling. One of our members who traded in hundreds of thousands of dollars has this unfortunate oversight and the rest of the story isn’t pretty.

4- A good range for a mental stop on the stock side is 8-10%.

5- One of the exit strategies I discuss in all my material is to close an entire position at anytime if news comes out of concern or if the stock is severely under-performing even if it doesn’t meet the BCI guidelines (although it usually will).

Alan

]]>