Comments for PowerOptions WeBlog http://blog.poweropt.com PowerOptions offers you tools and education to automatically sort, filter, and analyze all 3,800+ optionable stocks and 475,000+ options online. Fri, 11 Nov 2011 18:08:38 +0000 hourly 1 http://wordpress.org/?v=3.1.4 Comment on Pitfalls of Leveraged ETFs and How to Take Advantage of Them with Stock Options by laren http://blog.poweropt.com/2009/08/13/pitfalls-of-leveraged-etfs-and-how-to-take-advantage-of-them-with-stock-options/#comment-404761 laren Fri, 11 Nov 2011 18:08:38 +0000 http://blog.poweropt.com/?p=667#comment-404761 How about a collar with leveraged etfs? will that work. buy a leveraged etf, sell a covered call for the current month; and buy a long term (8-12 months out) put. Would that work?? How about a collar with leveraged etfs? will that work. buy a leveraged etf, sell a covered call for the current month; and buy a long term (8-12 months out) put. Would that work??

]]> Comment on 4 Ways to Insure Your Investment Portfolios by Chuck Johns http://blog.poweropt.com/2011/09/09/4-ways-to-insure-your-investment-portfolios/#comment-404723 Chuck Johns Thu, 15 Sep 2011 09:10:09 +0000 http://blog.poweropt.com/?p=915#comment-404723 Great info! You earn your subscription fees by giving and sincerely trying to help your clientele find success in this most difficult endeavor called trading. I often have other names for it - like everybody else. Thanks for all your help. Sincerely, Chuck Johns Great info! You earn your subscription fees by giving and sincerely trying to help your clientele find success in this most difficult endeavor called trading. I often have other names for it – like everybody else. Thanks for all your help.
Sincerely,
Chuck Johns

]]> Comment on Short Strangle vs. Iron Condor by Richard W http://blog.poweropt.com/2006/08/09/short-strangle-vs-iron-condor/#comment-404694 Richard W Tue, 23 Aug 2011 00:10:28 +0000 http://blog.poweropt.com/2006/08/09/short-strangle-vs-iron-condor/#comment-404694 Michael, I'm not sure I understand your statement. It sounds like you have mixed up the definition of the iron condor and the strangle. For the same sold put and call, the strangle (which is naked) will always make more money because you don't give up some of that premium to buy the protection. However, whereas the iron condor loss is limited (roughly) to the difference in the strike between the sold option and the protective one you bought, the strangle loss is the difference between the price of the security at expiration and the closer strike of the two sold options. So on the low side, the worst case scenario is the security drops to zero, and you are forced to buy a worthless stock at the strike of the put you sold with no way to get any money back out of it. On the high side, the loss could be infinite as the security price could rise without limit until expiration, so you have infinity-call strike = infinity, though practically speaking, it's hard to imagine a stock going up infinitely. But if your 40 dollar stock with a 55 dollar long call hits 220 bucks after inventing the cure for cancer, you'll wish it had dropped to zero instead. I think that is the loss of the entire account you mentioned, which is the risk of the strangle, not the iron condor, correct? Michael, I’m not sure I understand your statement. It sounds like you have mixed up the definition of the iron condor and the strangle. For the same sold put and call, the strangle (which is naked) will always make more money because you don’t give up some of that premium to buy the protection. However, whereas the iron condor loss is limited (roughly) to the difference in the strike between the sold option and the protective one you bought, the strangle loss is the difference between the price of the security at expiration and the closer strike of the two sold options. So on the low side, the worst case scenario is the security drops to zero, and you are forced to buy a worthless stock at the strike of the put you sold with no way to get any money back out of it. On the high side, the loss could be infinite as the security price could rise without limit until expiration, so you have infinity-call strike = infinity, though practically speaking, it’s hard to imagine a stock going up infinitely. But if your 40 dollar stock with a 55 dollar long call hits 220 bucks after inventing the cure for cancer, you’ll wish it had dropped to zero instead. I think that is the loss of the entire account you mentioned, which is the risk of the strangle, not the iron condor, correct?

]]> Comment on Short Strangle vs. Iron Condor by Michael Mathews http://blog.poweropt.com/2006/08/09/short-strangle-vs-iron-condor/#comment-404641 Michael Mathews Sun, 24 Jul 2011 04:12:43 +0000 http://blog.poweropt.com/2006/08/09/short-strangle-vs-iron-condor/#comment-404641 It is really more complicated then that. The risk vs reward is much safer with the naked strangle. The Iron Conder gives one the opportunity to make more money on the trade while risking everything which is very unwise. Remember that a credit spread is actually the same thing as naked options for the spread. With naked options there is the theoritical absence of a limit but if one suffers the loss through the entire spread the loss can be one's enitre account. It is really more complicated then that. The risk vs reward is much safer with the naked strangle. The Iron Conder gives one the opportunity to make more money on the trade while risking everything which is very unwise. Remember that a credit spread is actually the same thing as naked options for the spread. With naked options there is the theoritical absence of a limit but if one suffers the loss through the entire spread the loss can be one’s enitre account.

]]> Comment on Follow Up: New Weekly Options Listings and a Quarterly Options Update by MikeL. Chupka http://blog.poweropt.com/2010/07/28/follow-up-new-weekly-options-listings-and-a-quarterly-options-update/#comment-341187 MikeL. Chupka Fri, 17 Sep 2010 16:55:13 +0000 http://blog.poweropt.com/?p=830#comment-341187 Hi Traderjoe, A month ago we hosted a webinar that discussed the Weekly Options, suggested strategies and how to use the PowerOptions tools (www.poweropt.com) to identify, analyze and track weekly options positions. Simply follow this link to access the archived presentation: http://www.poweropt.com/webinars.asp From the archived webinar menu select 'Options Strategies Archives' and then select the Flash version or link to YouTube for the 'Weekly Options - 7/26/2010' archived presentation. -Mike C. Hi Traderjoe,

A month ago we hosted a webinar that discussed the Weekly Options, suggested strategies and how to use the PowerOptions tools (www.poweropt.com) to identify, analyze and track weekly options positions.

Simply follow this link to access the archived presentation:
http://www.poweropt.com/webinars.asp

From the archived webinar menu select ‘Options Strategies Archives’ and then select the Flash version or link to YouTube for the ‘Weekly Options – 7/26/2010′ archived presentation.

-Mike C.

]]> Comment on New Weekly Options – on Stocks! by MikeL. Chupka http://blog.poweropt.com/2010/06/25/new-weekly-options-on-stocks/#comment-341186 MikeL. Chupka Fri, 17 Sep 2010 16:47:56 +0000 http://blog.poweropt.com/?p=826#comment-341186 Rostam, we currently do not offer a free newsletter for weekly stock options, but the PowerOptions tools (www.poweropt.com) offer patented Search capability and analysis for weekly options positions in over 23 different options strategies. -MikeC. Rostam, we currently do not offer a free newsletter for weekly stock options, but the PowerOptions tools (www.poweropt.com) offer patented Search capability and analysis for weekly options positions in over 23 different options strategies.

-MikeC.

]]> Comment on Follow Up: New Weekly Options Listings and a Quarterly Options Update by Traderjoe http://blog.poweropt.com/2010/07/28/follow-up-new-weekly-options-listings-and-a-quarterly-options-update/#comment-341178 Traderjoe Fri, 17 Sep 2010 15:32:28 +0000 http://blog.poweropt.com/?p=830#comment-341178 Hi. Do you have any methods or approaches that can trade the Weekly Options, either on the individual stocks or the indexes. Thanks. Hi. Do you have any methods or approaches that can trade the Weekly Options, either on the individual stocks or the indexes. Thanks.

]]> Comment on New Weekly Options – on Stocks! by rostam chami http://blog.poweropt.com/2010/06/25/new-weekly-options-on-stocks/#comment-338135 rostam chami Mon, 06 Sep 2010 14:30:03 +0000 http://blog.poweropt.com/?p=826#comment-338135 Do you offer a free newsletter for weeky stock options? Do you offer a free newsletter for weeky stock options?

]]> Comment on Why is Simple Tech’s Stock Price so Complex? by Michael Chupka http://blog.poweropt.com/2010/01/05/why-is-simple-techs-stock-price-so-complex/#comment-299740 Michael Chupka Wed, 17 Feb 2010 23:01:51 +0000 http://blog.poweropt.com/?p=785#comment-299740 Marty, on PowerOptions we refer to the Max Pain calculator as the 'Strike of Pain' calculator. This tool can be accessed from the 'Stock Detail' page on PowerOptions. You can access the Stock Detail page two ways: 1. Type a stock symbol into the main symbol field on the Home menu and click 'Quotes'. This will link you to the Stock Detail Page. At the top you will see a link to the 'Strike of Pain' calculator. 2. When researching a position on a Search screen, click the More Information Button, select 'Research' and then select 'Stock Detail'. Marty, on PowerOptions we refer to the Max Pain calculator as the ‘Strike of Pain’ calculator. This tool can be accessed from the ‘Stock Detail’ page on PowerOptions. You can access the Stock Detail page two ways:

1. Type a stock symbol into the main symbol field on the Home menu and click ‘Quotes’. This will link you to the Stock Detail Page. At the top you will see a link to the ‘Strike of Pain’ calculator.

2. When researching a position on a Search screen, click the More Information Button, select ‘Research’ and then select ‘Stock Detail’.

]]> Comment on Lions, and tigers and no option symbols! Oh My! by Mike Phillips http://blog.poweropt.com/2010/01/20/lions-and-tigers-and-no-option-symbols-oh-my/#comment-299688 Mike Phillips Wed, 17 Feb 2010 16:32:19 +0000 http://blog.poweropt.com/?p=787#comment-299688 Mark Some brokers are still using the old root symbols. The old roots will eventually expire and the new symbol roots will be used. So eventually the root for Intel will be "INTC". Mike Phillips Mark

Some brokers are still using the old root symbols. The old roots will eventually expire and the new symbol roots will be used. So eventually the root for Intel will be “INTC”.

Mike Phillips

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