c***m 发帖数: 2630 | 1 I have accumulated huge position on FXI since last January. The average
price is around 42/share. Today fxi is around 40.5. I assume FXI will drop
in the future. Do I need to sell covered call to reduce my average price? Do
I sell leaped call like 01/2011 or next month call?
Really don't know much about the covered call, pls suggest. |
s*****1 发帖数: 430 | 2 首先要明确你想做什么
你的意思是即使你知道FXI要大跌你也会一直拿着么?
如果没有大跌的话
多次卖近期的CALL得到的PREMIUM当然比卖一次远期的CALL的PREMIUM要大的多
当然你要注意这个前提
如果你怕跌就卖ITM CALL
如果你怕你的FXI被CALL走 PROFIT不见了 你就卖OTM CALL |
j***b 发帖数: 5901 | 3 Also need to consider the spread. Even with covered call, it may come the
time that you need to cut the position. When that happens, a smaller spread
will help you a lot.
【在 s*****1 的大作中提到】 : 首先要明确你想做什么 : 你的意思是即使你知道FXI要大跌你也会一直拿着么? : 如果没有大跌的话 : 多次卖近期的CALL得到的PREMIUM当然比卖一次远期的CALL的PREMIUM要大的多 : 当然你要注意这个前提 : 如果你怕跌就卖ITM CALL : 如果你怕你的FXI被CALL走 PROFIT不见了 你就卖OTM CALL
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c***m 发帖数: 2630 | 4 Thanks,man.
Yes, I don't think SPY will move another 5%. FXI is even more dangerous. I
need to sell FXI. if I do now, I will lost money. So I want the protection.
People told me the covered call is safer than buying put for hedge.
since FXI fluctuate alot, I think I can't constantly sell next month call
like someone does for HD or T.
Based on your suggestion, I guess I need to sell ITM call. and it is 远期的
CALL.
Do you think I get it?
【在 s*****1 的大作中提到】 : 首先要明确你想做什么 : 你的意思是即使你知道FXI要大跌你也会一直拿着么? : 如果没有大跌的话 : 多次卖近期的CALL得到的PREMIUM当然比卖一次远期的CALL的PREMIUM要大的多 : 当然你要注意这个前提 : 如果你怕跌就卖ITM CALL : 如果你怕你的FXI被CALL走 PROFIT不见了 你就卖OTM CALL
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h****n 发帖数: 1546 | |
s*****1 发帖数: 430 | 6 我明白你的意思了
我帮你看看现在CALL的价位
感觉还是卖近期的比较好
protection.
【在 c***m 的大作中提到】 : Thanks,man. : Yes, I don't think SPY will move another 5%. FXI is even more dangerous. I : need to sell FXI. if I do now, I will lost money. So I want the protection. : People told me the covered call is safer than buying put for hedge. : since FXI fluctuate alot, I think I can't constantly sell next month call : like someone does for HD or T. : Based on your suggestion, I guess I need to sell ITM call. and it is 远期的 : CALL. : Do you think I get it?
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s*****1 发帖数: 430 | 7 april's call price:
Strike Symbol Last
39 FXI100417C00039000 2.64
40 FXI100417C00040000 2.07
41 FXI100417C00041000 1.45 |
s*****1 发帖数: 430 | 8 如果你卖41的CALL
如果被CALL走的话 相当于是 41+1。45卖出去的 你赚了
如果没有被CALL走的话 如果股票跌到 目前的价格-1。45以下的话 你就亏了
其它的自己算吧
可以组合一下 比如一半的41的CALL 一半40的CALL
YMYD |
r******o 发帖数: 1530 | 9 I do covered calls a lot, like on TIVO, for quite a while...
I don't recommend selling covered call in a loss situation, I think it makes
more sense to protect profit (when you make money).
If you lose money and also are bearish on the stock, why don't you just get
off the boat, and get back on later? If the stock crashes, the premium is
not enough to protect your profit, and it's really easy to fool yourself
into thinking that I have call premium so I'm not afraid of drops.
Another thing about |
c***m 发帖数: 2630 | 10 so you think it would be better to sell Apl call. in best situation, if fxi
fluctuate around 42, I can constantly sell next month call to earn the
option premium, right?
since my average price is 42. so I will do Apl call on 41:
如果被CALL走的话 相当于是 41+1。45卖出去的 你赚了
if price drop to 39, then my lose is 39-42+2.64 = -0.36
if i dont do covered call, I will lose 42-39=3
Am I right?
【在 s*****1 的大作中提到】 : 如果你卖41的CALL : 如果被CALL走的话 相当于是 41+1。45卖出去的 你赚了 : 如果没有被CALL走的话 如果股票跌到 目前的价格-1。45以下的话 你就亏了 : 其它的自己算吧 : 可以组合一下 比如一半的41的CALL 一半40的CALL : YMYD
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c***m 发帖数: 2630 | 11 But I am in deep water. Actually after careful calculation, I found my
average price is 44/share. Fxi is just 41 now.
Do u still think I should just sell fxi at 41? I won't do it. There is still some upside potential left in the near future. But not in long run.
makes
get
【在 r******o 的大作中提到】 : I do covered calls a lot, like on TIVO, for quite a while... : I don't recommend selling covered call in a loss situation, I think it makes : more sense to protect profit (when you make money). : If you lose money and also are bearish on the stock, why don't you just get : off the boat, and get back on later? If the stock crashes, the premium is : not enough to protect your profit, and it's really easy to fool yourself : into thinking that I have call premium so I'm not afraid of drops. : Another thing about
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s*****1 发帖数: 430 | 12 if it dropped to $39, you loss should be 39-42+1.45 = -1.55
fxi
【在 c***m 的大作中提到】 : so you think it would be better to sell Apl call. in best situation, if fxi : fluctuate around 42, I can constantly sell next month call to earn the : option premium, right? : since my average price is 42. so I will do Apl call on 41: : 如果被CALL走的话 相当于是 41+1。45卖出去的 你赚了 : if price drop to 39, then my lose is 39-42+2.64 = -0.36 : if i dont do covered call, I will lose 42-39=3 : Am I right?
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c***m 发帖数: 2630 | 13 you are right.
My average price is actually 44/share, do u agree with me that I should
continue to sell covered call?
I am so glad market is moving higher today. I will keep unloading more.
【在 s*****1 的大作中提到】 : if it dropped to $39, you loss should be 39-42+1.45 = -1.55 : : fxi
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r******o 发帖数: 1530 | 14 I looked at the implied vol and historical vol, I won't sell covered call in
this case. Today's vol is close to 1Y low, only around 27%.
Here is one adverse case that may happen to you: your stock drops, at the
same time, you vol shoot up. You get hurt both sides.
Usually, a declining implied vol is coupled with steady climb of the stock.
Why don't you just hold?
still some upside potential left in the near future. But not in long run.
【在 c***m 的大作中提到】 : But I am in deep water. Actually after careful calculation, I found my : average price is 44/share. Fxi is just 41 now. : Do u still think I should just sell fxi at 41? I won't do it. There is still some upside potential left in the near future. But not in long run. : : makes : get
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c***m 发帖数: 2630 | 15 " Today's vol is close to 1Y low, only around 27%." you mean the volatility for the strike price 40 of March call?
Thanks for your explanation and suggestion. I will study more.
in
.
【在 r******o 的大作中提到】 : I looked at the implied vol and historical vol, I won't sell covered call in : this case. Today's vol is close to 1Y low, only around 27%. : Here is one adverse case that may happen to you: your stock drops, at the : same time, you vol shoot up. You get hurt both sides. : Usually, a declining implied vol is coupled with steady climb of the stock. : Why don't you just hold? : : still some upside potential left in the near future. But not in long run.
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s*****1 发帖数: 430 | 16 first I have to reiterate that it's YMYD
and secondly you need to think it through that you are anticipating a big
correction or a small correction, and also how long you wanna hold it.
consider both April calls and May calls if I were you.
and remember there is no free lunch.
【在 c***m 的大作中提到】 : you are right. : My average price is actually 44/share, do u agree with me that I should : continue to sell covered call? : I am so glad market is moving higher today. I will keep unloading more.
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c***m 发帖数: 2630 | 17 Thank you for your valuable suggestion. Of course it is my decision. I never
bash anyone based on the suggestion. Thank you, I OWE you a big one.
rogerguo pointed out the volatility issue, this is new to me, what do you
think?
【在 s*****1 的大作中提到】 : first I have to reiterate that it's YMYD : and secondly you need to think it through that you are anticipating a big : correction or a small correction, and also how long you wanna hold it. : consider both April calls and May calls if I were you. : and remember there is no free lunch.
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j***b 发帖数: 5901 | 18 lol. you "own" him?
never
【在 c***m 的大作中提到】 : Thank you for your valuable suggestion. Of course it is my decision. I never : bash anyone based on the suggestion. Thank you, I OWE you a big one. : rogerguo pointed out the volatility issue, this is new to me, what do you : think?
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r******o 发帖数: 1530 | 19 implied vol from Apr 40 call contract, in fact, the implied vol is pretty
low accross the board. I don't think you will get much benefit by shorting
the vol. When implied vol is low, you really want to long the vol.
The only reason will be to hedge against downside with ITM contract, but
then, like I said, you are actually realizing some loss this way, i.e. FXI
goes up, you are not participating the rally.
volatility for the strike price 40 of March call?
【在 c***m 的大作中提到】 : " Today's vol is close to 1Y low, only around 27%." you mean the volatility for the strike price 40 of March call? : Thanks for your explanation and suggestion. I will study more. : : in : .
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c***m 发帖数: 2630 | 20 Sorry for my type. I just corrected it.
IOU: I owe you a solid means the person is grateful for something you've
just done for them. He owes you a favor.
Don't leave pls. I actually have q for u. You mentioned spread, can u
explain?
【在 j***b 的大作中提到】 : lol. you "own" him? : : never
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s*****1 发帖数: 430 | 21 regarding the volatility issue, maybe you should do a bit more research.
however, I feel that what he said involve some speculation on FXI, which is
uncertain and no one will know fore sure.
my impression is that it shouldn't be a big factor, if want you are never
gonna buy back the calls you sold (ie, either the calls you sold got expired
, or your underlying stocks got called away).
never
【在 c***m 的大作中提到】 : Thank you for your valuable suggestion. Of course it is my decision. I never : bash anyone based on the suggestion. Thank you, I OWE you a big one. : rogerguo pointed out the volatility issue, this is new to me, what do you : think?
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j***b 发帖数: 5901 | 22 spread means the difference between asking and bidding price. fxi options
has very little spread. So this is not much of a concern.
【在 c***m 的大作中提到】 : Sorry for my type. I just corrected it. : IOU: I owe you a solid means the person is grateful for something you've : just done for them. He owes you a favor. : Don't leave pls. I actually have q for u. You mentioned spread, can u : explain?
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s*******e 发帖数: 432 | 23 I do not see why you want to sell covered call. If you sell covered call
your upside return is already capped. So you are waiting for the dropping or
wait for the other party do not excise and the stock price does not crash
lot |
s*******e 发帖数: 432 | 24 I do not see why you want to sell covered call. If you sell covered call
your upside return is already capped. So you are waiting for the dropping or
wait for the other party do not excise and the stock price does not crash
lot |
c***m 发帖数: 2630 | 25 just sold 15% fxi to limit the loss. tough decision to make. let me think it
for a while...
vix is 17.41 now. 1 year low.
is
expired
【在 s*****1 的大作中提到】 : regarding the volatility issue, maybe you should do a bit more research. : however, I feel that what he said involve some speculation on FXI, which is : uncertain and no one will know fore sure. : my impression is that it shouldn't be a big factor, if want you are never : gonna buy back the calls you sold (ie, either the calls you sold got expired : , or your underlying stocks got called away). : : never
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c***m 发帖数: 2630 | 26 let us see tomorrow then make a decision. |
c***m 发帖数: 2630 | 27 Finally I write a covered call for fxi and pgj for the first time in my life.
Now, I begin to feel what MM is thinking. |