Publications

Put-Call Parity and Stock-Option Synthetics

Options and stocks are more similar than you think. In fact, options are the building blocks of stock. By combining options and stocks, you can create a virtually unlimited number of different risk exposures. With this knowledge, the world is your oyster.

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Put-Call Parity and Stock-Option Synthetics

Options and stocks are more similar than you think. In fact, options are the building blocks of stock. By combining options and stocks, you can create a virtually unlimited number of different risk exposures. With this knowledge, the world is your oyster.

… Read More

4/7/11 – Welcome to Options for Income

Welcome! I’d like to congratulate you on your decision to become a Charter Member of Options for Income. You have made a very wise investment in your financial future and I welcome you to what will be a grand and profitable venture! Very soon, you will be among a rare class of investors who have […]… Read More

9/17/15 Trade Alert: Avoid Dividend Early Assignment Risk

 Put-Spread Conversion on SPDR S&P 500 ETF (NYSE: SPY) in September “Buy to Close” September $199 Call and “Sell to Close” September $196 Call and “Buy to Open” September $196 Put and “Sell to Open” September $199 Put Option Symbols: SPY150918C196 and SPY150918C199 and SPY150918P196 and SPY150918P199 Limit Order Price: Net credit $3.45 or more ($345 per spread)–day order If your […]… Read More

KSS, UCTT: Early Birds

Please Note: Two Separate Trades 1. Vertical Roll on Ultra Clean Holdings (Nasdaq: UCTT) to January “Buy to Close” December $45 Call and “Sell to Close” December $30 Call and “Buy to Open” January $30 Call and “Sell to Open” January $45 Call Option Symbols: UCTT221216C30 and UCTT221216C45 and UCTT230120C30 and UCTT230120C45 Limit Order Price: […]… Read More

9/18/15 Trade Alert: Fed Reaction Closeout

Buy to Close SPDR S&P 500 ETF $199 Put (NYSE: SPY) If SPY is below $196, do nothing and let both put options get exercised automatically. If SPY is above $196: “Buy to Close” the September $199 put at the market. Option Symbol: SPY150918P199 Price: Market order at 3:59 Eastern time Trade Rationale: The $199 […]… Read More

META, PG: Social Household

Please Note: Four Separate Rolls 1(a). Closeout on Eastman Chemical (NYSE: EMN) as Part of Vertical Roll “Buy to Close” November $105 Call and “Sell to Close” November $90 Call and “Buy to Close” November $115 Call and “Sell to Close” November $130 Call Option Symbols: EMN221118C90 and EMN221118C105 and EMN221118C115 and EMN221118C130 Limit Order […]… Read More

9/22/15 Trade Alert: One of the Weakest Weeks of the Year

Note to Beta Test Group: A few beta testers commented that they exited last week’s SPY 196/199 call debit spread early because the rate of return was so high that they wanted to “lock it in.” Profits of anywhere from 50%-95% were locked in. The purpose of this beta-test period is precisely to get feedback […]… Read More

AFL: Last-Minute Roll

Vertical Roll on Aflac Inc. (NYSE: AFL) to November (2nd week) “Buy to Close” September (5th week) $77 Call and “Sell to Close” September (5th week) $78 Call and “Buy to Open” November (2nd week) $76 Put and “Sell to Open” November (2nd week) $77 Put Option Symbols: AFL230929C77 and AFL230929C78 and AFL231110P76 and AFL231110P77 […]… Read More

9/28/15 Trade Alert: Taking Advantage of High Volatility for Neutral Iron Condor

Note to Beta Test Group: A few beta testers commented that they disregarded my limit debit order of 0.70 on last week’s SPY 194.50/196.50 put debit spread because the large gap down on Tuesday morning made the 0.70 limit debit unfillable and they still liked the trade for a 1.15 debit. After all, at a […]… Read More