<p>Yesterday, I bought 10/31 spy 197 - 196 puts and sold 182.5- 152.5 puts for a gain of $121.35. I now have 30 contracts with this type of trade.</p>
<p>I finally got a hold of fidelity on that bizarro spy trade from the 19th. I expected them to say that a computer algorithm came up with the best way of handling this but apparently several of them sat down and came up with the trades.</p>
<p>How do you fund mortgages?</p>
<p>I have no problem with the way fidelity handled the trades. I think they did a good job. </p>
<p>There are mortgage companies that act as go betweens between borrowers and lenders. Borrowers go to mortgage companies…mortgage companies send out information to their list of lenders which are regular people with capital. Most deals are crummy. Once in awhile… A good one shows up. The good deals are very hard to get. You have to have patience. Once in awhile you get a shady mortgage broker.</p>
<p>You want the loans recorded. Otherwise, you arent really protected. The property is the collateral. </p>
<p>If you live near a city…these mortgage companies should be located near you.</p>
<p>You want a low loan to value loan because you want to be sure there is plenty of equity in the property.</p>
<p>I saw one deal today with a loan to value over 70 percent. That is too high for me. There are costs involved if somebody defaults.</p>
<p>dstark: I finally figured out what was screwy with my calculations of the fidelity spy call spreads. When I added up your calculations with what the spreads that I still have, the total came out to be > than the maximum gain I calculated assuming no dividends were paid. In my spreadsheet which has breakeven etc., I neglected that I had bought and sold some put spreads for protection which added another 3 - 4 points to the breakeven. Now it makes sense.</p>
<p>Doct, Ok. Good. I dont want to be wrong if I am trying to help you. :)</p>
<p>I would like to hedge my portfolio since I am kind of losing a little. I am doing a bad job because I havent hedged it. :)</p>
<p>The market is down, not sure the reason why. But I made money buying PCLN calls, I figured with this stock a small swing I would make money and I did. On the other hand had I hold on to TSLA I would have made more money too but I don’t have 20/20 hindsight.</p>
<p>What was that stock you were playing with to participate in the baba trade ? Not yahoo. Something else.</p>
<p>Closed out my iwm puts for a small loss. </p>
<p>Are you thinking of JD? It’s down today.</p>
<p>I should have bought more put spreads</p>
<p>That is it… Jd is down about $7. Cnbc guys recommended jd?</p>
<p>As a trade, I like the buying and selling of the put spreads.</p>
<p>As a hedge, it is not sufficient for me. If i did those spreads 30 times… The most I can make is $3,000. I am down more than $3,000 today. Of course, doing nothing isnt a hedge. I may never sell the stocks I own so that adds to my inertia. :)</p>
<p>Cnbc is only right for a short term. Like last year BA was a hot stock, not a single person said anything negative about it. This year it’s down.
Very difficult market to make money. It’s too late to short the market. At least I liquidate most of my naked puts option a few weeks back. I sleep easier now.</p>
<p>@DrGoogle - you must have impeccable timing. PCLN was down $20 today. Did you manage to catch the option at a low point in the day? Or are you referring to a trade you opened or closed earlier? </p>
<p>"As a trade, I like the buying and selling of the put spreads.</p>
<p>As a hedge, it is not sufficient for me. If i did those spreads 30 times… The most I can make is $3,000. I am down more than $3,000 today. Of course, doing nothing isnt a hedge. I may never sell the stocks I own so that adds to my inertia"</p>
<p>$3000 is the most anybody can make on that trade. The purpose is not to hedge as many of my positions are already hedged. The purpose is to smooth out volatility. It’s a less risk way of doing this - especially since I got paid to put the trade on to begin with. If I thought the market was going down more than 10%, I would be much more agressive with puts.</p>
<p>Dr. google - you’re amazing. It’s astonishing that you are able to turn around options trades so quickly.</p>
<p><a href=“S&P 500 Earnings Yield”>http://www.multpl.com/s-p-500-earnings-yield</a></p>
<p>@Calmom, it was all today, I think I bought a call when it was down 20 and sold when it was down 17. Since this is a big stock, I was hoping for more swing but I was glad to take any profit in 15 minutes.</p>
<p>So DrGoogle which option in pcln did you buy?</p>
<p>Do you close out losers the same day?</p>
<p>Are you still holding jd?</p>
<p>I bought Jan 17 2015 1140 C, I bought it for 62.66 and sold for 63.40.
If it’s a looser I hold on for a while, not too please about TSLA, I had to hold a whole week. I prefer to be in and out quickly. But had I kept it today, I would make more money.
Yes, I still have small portion of JD because I sold so many call options on it, I think I should be ok, not great but not down too badly.</p>
<p>Lets see if spy gets to 5 percent below its high which is the first trigger for me to buy more calls.</p>