<p>Ok… Great. Thanks.</p>
<p>I was hoping the writer who wrote down
30 was right. I guess he pulled that number out of his a…</p>
<p>Gold is up only $10.</p>
<p>Isn’t the dollar up?</p>
<p>The Euro Dollar opened a lot stronger for the dollar.</p>
<p>WTI is down less than a dollar. Nat Gas is up about 60 cents.</p>
<p>Nikkei futures? Not open yet?</p>
<p>The dollar denominated Nikki 225 is down 120 or .96%</p>
<p>I don’t trade the Nikki so I am not familiar with the symbols for Japanese indexes.</p>
<p>Del Potro won the first set.</p>
<p>Razorsharp, you did a good job. Thanks.</p>
<p>That is a big increase in nat gas. 60 cents?</p>
<p>Thanks. Yes that is a big jump in Nat Gas. It is in a bull trend right now and for several weeks it seems to gap up at the open. I found out several weeks ago about the gap up when I was short Friday and had a nasty loss on the open on Sunday.</p>
<p>Gaps can screw up a trade pretty good. Can mess up stops too.</p>
<p>[Natural</a> gas: commodity market?s ?sleeping giant? - MarketWatch](<a href=“http://articles.marketwatch.com/2013-03-15/markets/37725566_1_natural-gas-prices-natural-gas-shale-gas-wells]Natural”>http://articles.marketwatch.com/2013-03-15/markets/37725566_1_natural-gas-prices-natural-gas-shale-gas-wells)</p>
<p>“Instead, prices have climbed over 9% month to date, with the market betting on a tighter supply and demand situation following a cold winter season, signs of a recovery in the U.S. economy, a drop in drilling rigs, growing uses for the fuel, and a shift away from coal-fired plants.”</p>
<p>"Doct, you wrote 55 calls in post 5774. I was feeding off your post. I thought you wrote 50 calls.</p>
<p>The div averages something like .45 a qtr. (It is not the same amount each qtr).
If you are long the stock, you get the dividend. As you know if you are long the calls, you don’t. If the cost of owning the stock and puts is the same as the calls, and the capital requirements are the same for both positions, owning stock and puts are more lucrative than owning the calls.</p>
<p>As an example…if the choice is long 10 calls or long 1000 shares of
stock and long 10 puts of the same strike with costs the same, and the dividend is .45 a qtr for 2 qtrs…</p>
<p>Being long stock and puts is $450 more profitable per qtr because that position gets the dividend. If there are 2 dividends, that is a profit of $900.</p>
<p>What I wrote affects every option where the stock or etf pays a
dividend. Most option traders don’t understand this. These little things can add up. Especially when you trade multiple times."</p>
<p>Let me clear this up a bit. The example I gave was if I was doing this today (assuming the market had dropped 10% to this point) with the stock is at 94.75 and going long until September ~ 6 months as I plan on doing when the market drops. I would buy the 55 calls and be 40 itm. I’m not about to lose 40 of my money and buy a 50 put. I would buy a 95 put (9/21) for 5.14, sell a 90 put = 3.15 and an 85 put for 1.92. Cost = .07. This is just an example and it gives me protection for another 5% loss beyond the 10% that has already occurred. Maybe there’s a better way of doing this - I haven’t thought about it as I think I have some time.</p>
<p>I’m not following what you’re saying about the capital requirements. I just called Schwab and basically I was told that the requirements are not the same buying the stock and the calls so it is more advantageous doing it the way I described above as opposed to buying the stock. For me it is better to buy it at 40 without the dividend than buying it at 94.75 with the dividend.</p>
<p>Uhhhh… That is what I wrote… 5:54 p
M yesterday.</p>
<p>The capital requirements are not the same. </p>
<p>I understood you except for the size of the trade which isn’t my business.</p>
<p>BCEagle91,</p>
<p>Thanks for the link.</p>
<p>Yeah - I made a mistake. In that trade I also need 85000 for the 10 85 puts that I sold. Again - I just threw out some numbers.</p>
<p>I must have misread what you wrote because I thought you said that the capital requirements were the same so why would I buy the calls instead of the stock?</p>
<p>What is a good natural gas play?</p>
<p>No. I said to call Schwab to check. Then I called Schwab and wrote that post.</p>
<p>I am going to send an email to a contact at Schwab and ask him. I don’t like the answer they gave. Lol</p>
<p>
</p>
<p>nfg, eog, cog, line</p>