Sentences with phrase «deep in the money»

This is why I've sold 3 large deep in the money puts for a nice revenue stream.

When the short leg is deeper in the money compared to the long leg (credit spread), the full value of the long option is used for coverage plus an additional margin equal to the strike difference.

Investors who buy stock for the purpose of selling deep in the money calls against it are trying to earn the time premium portion of the option price as income.

Deep in the money covered calls have a lot of intrinsic value (downside protection).

This video demonstrates looking for deep in the money calls (turn your sound on and this will be more meaningful):

If you would like to learn how selling deep in the money calls can generate recurring monthly income, sign up for our free newsletter or a 2 week free trial of our service.

Born To Sell's Search feature quickly finds deep in the money opportunities to sell that match your personalized investment criteria.

Selling deep in the money calls is a great way for investors to generate recurring monthly income.

But the Max Protection feature is a time saver when looking for a place to begin your research for deep in the money covered calls that offer the most downside protection given your annualized return goals.

In doing so they usually increase the call premiums to where they're just too juicy to not try a deep in the money buy - write (eg.

In Lee's first strategy, he recommends buying options that are deep in the money.

So, to reduce assignment risk, I usually close out my option positions 1 - 2 weeks before expiration, especially the contracts that are deep in the money.

Buying deep in the money calls is an alternative to owning the stock.

But a better strategy than buying deep in the money calls is selling them.

Although it is a less expensive way to own the stock, there are at least two significant risks: (1) time decay will eat away at the value of your deep in the money calls as time passes, and (2) the stock could drop and then not recover before the options expire.

Born To Sell's Search feature finds deep in the money covered calls that match your personalized investment criteria.

Deep In the money calls are those where the strike price of the call option is significantly less than the current stock price.

Born To Sell has a special screener that finds high yield deep in the money candidates.

By selling a deep in the money call against it you can get a little extra time premium for stock you were going to sell anyway.

If you think the stock is due for a little pull back but you don't want to sell the stock then sell a deep in the money call against it.

(And note that buying deep in the money calls is a completely different strategy, and not covered here.)

You specify the minimum annualized rate of return you want, say 24 % / year, and then it sorts all deep in the money covered call candidates that have a rate of return greater than 24 % by downside protection (so the ones with the most protection are on top).

If you do any buy - writes next week with Feb expirations you may want to consider deep in the money options.

The IRS definition of deep in the money is any option with less than 90 days until expiration where the strike is less than the first available in the money strike, or any option with more than 90 days until expiration where the strike is less than 2 strikes in the money.

The advantage of selling deep in the money calls is the safety you get with increased downside protection (intrinsic value).

Stock is trading at 16.91 with $ 1 increment strikes so any option with a strike of 15 or less would be deep in the money.

In doing so they usually increase the call premiums to the point where they're just too juicy to not try a deep in the money buy - write.

The reason that deeper in the money options have so little time and volatility priced in is because you are insuring someone's profits in that stock.

You may also enjoy our earlier article and video on Deep In The Money Calls.

As seller of a put option that's deep in the money, you participate in the upward and downward movement of the stock price, unless the price moves higher than the option price.

A deep in the money call will see its time value diminish, and that's the option most likely to get exercised early.

By writing deep in the money calls on large cap blue chip stocks you can get better yields than what bonds pay.

If you sell options that are deep in the money then the IRS may take the position that it was a constructive sale at the time you sold the option (as opposed to the time it was exercised).

The conservative way to do this strategy is to find stocks that pay well for deep in the money covered calls.

If you are writing deep in the money calls on thinly traded issues and are happy having them called away at expiration then maybe you can invest in these stocks.

You are already deep in the money with a $ 30 call.

The $ 50.00 option is deep in the money, so the investor exercises it and purchases 100 shares of BCE at $ 50.00, for a total of $ 5000.00.

Barrier options are similar to normal options with one key difference — there exists a pre-determined «barrier price» that is considered deep in the money, and if the price of the underlying security passes the barrier price, the option can not be exercised at any point in the future.

After my plan yesterday with PG deep in the money covered calls didn't work I tried a slightly different approach with Southern Company (SO) today.

You can get creative with your offsetting futures trade if you are in the money by placing a GTC sell limit quite a distance above your strike price in the event the market rally's, let's say at 2210.00 or if you want, when you are in deep in the money with a day or two before expiration you can place a sell stop under GTC, or even a trailing stop in the futures, you know what they say, «cut your losses short and let your profits run!»..

To collect premium using a forex binary option, one possible strategy is to buy or sell Deep In The Money (DITM) contracts.

Also a lot of my naked puts are getting fairly far out of the money and covered calls are deep in the money.

My one SPY September $ 215 put finished deep in the money, as did my one MDY September $ 280 put.

However, because it is 2x leveraged you may want to go 1 or 2 strikes deeper in the money than you are used to.

But you could roll up to the 310 strike (from the 300 strike you have today) since your option is now deep in the money.

Not exact matches

In fact, to make money from YouTube, you have to dig a little deeper and establish a more sustainable strategy.

The single market is a deeper form of co-operation between member states that allows the free movement of goods, services, money, and people in the bloc.

Anna Sale hosts this podcast, Death, Sex & Money with Anna Sale where she explores the deeper questions and unsaid truths that are sometimes left out of the polite conversations in life.

Lately, though, two big players in the chain and franchise restaurant world have put their money on the idea that low - calorie, deep - fry - free zones are the next big culinary trend.

The money will patch holes in Detroit's pension funds, prevent even deeper cuts to retirees and avert the sale of city - owned art at the world - class museum.