Get The Wall Street Journal for 75% off!

Get The Wall Street Journal for 75% off!

SPY

You have sold 5 contract(s) of SPY JAN 2009 103 Call. @0.66

SPY

You have bought 6 contract(s) of SPY DEC 103 Call. @0.04

20 ways to make $100 a day online

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http://pathway100.com/?e=kblake

SMH

You have sold 10 contract(s) of SMH JAN 2010 27.5 Call. @0.8

qqqq

You have sold 10 contract(s) of QQQQ SEP 2009 Q3 48 Call. @0.26

SPY Spread

sold dec 103/ .30 bought 106 .06

Examples

An investor has 500 shares of XYZ stock, valued at $10,000. He sells 5 call contracts for $1500, thus covering a certain amount of decrease in the XYZ stock (i.e. only after the stock value has declined by more than $1500 would the investor lose money overall). Losses can not be prevented, but merely reduced in a covered call position. If the stock price drops, the buyer of the call can not exercise the option because contractually the stock price must be above the strike price, and the seller (writer) keeps the money paid on the premium of the option, thus reducing his loss from a maximum $10000 to $10000-(premium).

This "protection" has its own disadvantage in which the investor is forced to sell his stock if the option is "called out" in which the writer is forced to sell his stock below market price or he must buy the calls back at a higher price than he sold them for.

The investor might repeat the same process again next month if he/she believes that stock will either fall or be neutral, if before expiration stock price does not reach strike price.

A call can be initiated sometimes even without ownership of underlying stock. If XYZ trades at $33 and $35 call trades at $1, than either can purchase 100 shares of XYZ and only sell one call. For this only $3200 is required to purchase the stock rather than $3300. The premium received for the call covers the decline made by the first $100 ($1 per share) in stock price. Thus $32 stock price is break-even point of the transaction. If the results are high, then profit and lower result means loss. In the above case, the upside potential limits more than $300 ($100 for selling call and $200 for increase in share price) to 35, which amounts to almost 10% return. The investor might repurchase the stock because he cannot participate, as he is required to sell call to 35. So he sell calls at higher strike price.

Cad Employment Change -70.6K forcast -25k

Cad Employment Change -70.6K forcast -25k
It's a big day for both Canada and the U.S., with the release of November employment data.

Canadian employment will be the first release of the day. Economists are forecasting 25,000 jobs lost, following October's 9,500 jobs gained. The unemployment rate is expected to move higher to 6.4% following October's reading of 6.2%.

SWHC

You have sold 5 contract(s) of SWHC JAN 2010 5 Call. @0.7

EUR/USD

Buy if they raise / sell if lower
The European Central Bank cut interest rates by 75 basis points on Thursday, its biggest ever move as inflation plummets and the euro zone economy sinks deeper into recession.

GBP

Bank of England cuts official interest rates to 2 pct

XLF

You have sold 5 contract(s) of XLF MAR 2009 16 Call. @0.61

GFI

You have sold 10 contract(s) of GFI JAN 2010 20 Call. @0.75

XLF sold to close $185.00 profit

SPY Spread