Comments on: Free trade: October 07, 2009 http://optiongenius.com/blog/free-trade-october-07-2009/ The Option Genius Blog Thu, 09 Feb 2012 01:39:26 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Genius http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-134 Genius Fri, 16 Oct 2009 18:31:52 +0000 http://optiongenius.com/blog/?p=117#comment-134 The software used to calculate the breakevens was my brokers trading software. You should be able to use any broker's trading platform to determine breakevens on a Calendar Spread. The software used to calculate the breakevens was my brokers trading software. You should be able to use any broker’s trading platform to determine breakevens on a Calendar Spread.

]]> By: Kapinak P http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-133 Kapinak P Fri, 16 Oct 2009 16:53:56 +0000 http://optiongenius.com/blog/?p=117#comment-133 What is the trading software you use to calculate that? Please let me know i am very interested. What is the trading software you use to calculate that? Please let me know i am very interested.

]]> By: Doug Fosbury http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-132 Doug Fosbury Thu, 15 Oct 2009 23:44:12 +0000 http://optiongenius.com/blog/?p=117#comment-132 I see that POT reached 94.96 for a high today altho it came back below your suggested limit of 94.40. Should we exit tomorow? I see that POT reached 94.96 for a high today altho it came back below your suggested limit of 94.40. Should we exit tomorow?

]]> By: Genius http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-126 Genius Mon, 12 Oct 2009 17:31:31 +0000 http://optiongenius.com/blog/?p=117#comment-126 I followed up this post with another on Calendar Spreads trying to explain how they work in more detail. The max profit is calculated by the trading software. I am sure you can do it by hand but it is too easy to let the computer do it. I never did too well in math anyway. I followed up this post with another on Calendar Spreads trying to explain how they work in more detail. The max profit is calculated by the trading software. I am sure you can do it by hand but it is too easy to let the computer do it. I never did too well in math anyway.

]]> By: toby http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-118 toby Fri, 09 Oct 2009 16:04:35 +0000 http://optiongenius.com/blog/?p=117#comment-118 I am totally confused.It seems the correction of the typo is the SAME as the typo, ie sale the OCT 90 Call and buy the Nov 90 Call. Also since you paid $315, what exactly has to happen before you make a profit on this trade? As a new follower, please help! thanks, toby copeland I am totally confused.It seems the correction of the typo is the SAME as the typo, ie sale the OCT 90 Call and buy the Nov 90 Call.
Also since you paid $315, what exactly has to happen before you make a profit on this trade?

As a new follower, please help! thanks, toby copeland

]]> By: Don Yoshikawa http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-115 Don Yoshikawa Wed, 07 Oct 2009 20:35:13 +0000 http://optiongenius.com/blog/?p=117#comment-115 The cost of the trade is $315. How do you calculate the max profit? If it gets near expiration w/o it going over 90 you collect most of the Oct premium and you would sell the Nov call which would have gone down in price which would be an unknown at this time. My understanding of a calender spread is the Oct call will drop in value faster than the Nov call. Not sure how you got your break even points. The cost of the trade is $315. How do you calculate the max profit? If it gets near expiration w/o it going over 90 you collect most of the Oct premium and you would sell the Nov call which would have gone down in price which would be an unknown at this time. My understanding of a calender spread is the Oct call will drop in value faster than the Nov call. Not sure how you got your break even points.

]]> By: Genius http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-114 Genius Wed, 07 Oct 2009 19:37:53 +0000 http://optiongenius.com/blog/?p=117#comment-114 My bad. Sell the Oct 90 Call and buy the Nov 90 Call. My bad.
Sell the Oct 90 Call and buy the Nov 90 Call.

]]> By: Genius http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-113 Genius Wed, 07 Oct 2009 19:37:32 +0000 http://optiongenius.com/blog/?p=117#comment-113 Sorry. There was a type in the trade which I have now fixed. It should be Sell the Oct 90 Call and But the Nov 90 Call Sorry. There was a type in the trade which I have now fixed. It should be Sell the Oct 90 Call and But the Nov 90 Call

]]> By: Genius http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-112 Genius Wed, 07 Oct 2009 19:36:56 +0000 http://optiongenius.com/blog/?p=117#comment-112 Actually there was a type. The trade is Sell the Oct 90 but the Nov 90 Calls. Actually there was a type. The trade is Sell the Oct 90 but the Nov 90 Calls.

]]> By: Dick http://optiongenius.com/blog/free-trade-october-07-2009/comment-page-1/#comment-111 Dick Wed, 07 Oct 2009 18:52:14 +0000 http://optiongenius.com/blog/?p=117#comment-111 That trade should cost you brokerage and your rate of return is negative. If my figuring is correct. But the risk is low...... That trade should cost you brokerage and your rate of return is negative. If my figuring is correct. But the risk is low……

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