Recent content by darrenmo

I often hear people say that price moves because there are more buyers than sellers (or vice versa). I also hear that "most traders are wrong". There has to be a buyer for every seller. It’s not the number of buyers and sellers that matters, but rather with the number of shares that people...

Hello, I have a pretty mundane question but would really appreciate your help. Could someone explain clearly (or walk me through) how I am supposed to see what I have earned/lost when my position closes, so that I can keep track of how I am doing? I am primarily selling Puts and Calls...

Thank you I'll check them out.

Thank you for that, it's clarified a lot for me. Can I be so bold as to ask you for some general advice for how best to generate a monthly premium whilst keeping risk in check? For example, do people ever sell a Call and a Put? What would you do if your only concern was to make 4% yield on the...

Thank you for putting me straight Martinghoul. I don't then understand why so many "gurus" state that a Put is like "buying insurance". To to try and simplify the concept they describe selling a call as "renting" shares. They explain that you get paid rent or a premium for renting your...

I would appreciate that yes. I may have something fundamentally wrong in my understanding. When selling a call, I am being paid a premium. When selling a Put (so as to give myself some insurance) I am paying someone else right? Am I correct in thinking I would pay 0.03 to sell the $15 Put...

Thanks for the advice (?!)

Hi Hoggums; Surely I wouldn't make $13 as I paid $30 for the stock in the first place so I'd walk away $3 down. But I do now see that someone would only sell deep in the money if they thought the stock would drop. However, if you thought the stock would drop wouldn't it be wiser to short the...

I am pretty sure I misunderstand why people would sell deep ITM calls so please pick me up on anything that is wrong in the following statement: If a stock price is $30 then selling a call option at $28 would be ITM. That means that I (the person selling the call) would receive a premium for...

What happens if a stock is trading at $25.76 and I choose to sell a call option for $25.00 (in the money). Then I look at the Put options and buy the Put for $25.00 (same amount as the call). Do I have my shares called away immediately and also have them bought back at the same time? Am very...

I am learning to write call options on an underlying position to generate income from option premiums. I use Interactive Brokers and the specific strategy I use is a Buy/Write. I decide on a stock to perform a Buy/Write on by viewing Yahoo Finance. I have been looking at the following DATA to...

I am learning to sell call options (buy/write) and use the yahoo finance website to choose a stock and review the current bids etc. Please click the link below and notice on the left hand side that there is a link called "options": Symbol Lookup from Yahoo! UK & Ireland Finance How come the...

Thank you for your answer, I think I was confused and thinking I could treat it as a "Put". Do you have any tips for "renting" using the buy/write strategy? I have done about 10 simulated trades online and growing more comfortable now. My aim is monthly income from the premium. I don't care if...

Hi guys, Is it possible to do a buy/write for an amount below the current share value? Example, could I sell at a strike price of $12.50 on this stock MSFT Options | Microsoft Corporation Stock - Yahoo! UK & Ireland Finance Darren