Tuesday, February 2, 2010

Rumors Confirmed


Now how to adjust a Protective Put into a Bull Put???

Here is how it looks in my account...

By selling a put at a higher strike than the put that was purchased on the 12th of January, making sure to sell it for more than the Long Put was bought I have created a credit spread or a bull put. And in this case a Bull Put Calendar Spread...
The Long Put BTO on the 12th of Jan. for $2.34 per share.
The Short Put STO on the 1st of Feb. received $3.00 credit.
Net Credit = $0.66 per share
(0.66 x 10 contracts = $660.00)

If RIMM stays above 65 buy February expiration, I will have a MAR 60 Long Put with no costs (FREE PROTECTION, until March)

For more indepth conversation about this and other situations like this, please contact me anytime at:

Demand Talib Kweli in University of Utah!
Talib Kweli in University of Utah - Learn more about this Eventful Demand

View all events on Eventful


Options involve risk. Prior to buying or selling an option, an investor must receive a copy of Characteristics and Risks of Standardized Options. Investors need a broker to trade options, and must meet suitability requirements. Past results are not necessarily indicative of future performance.

All examples are exclusive of commissions, interest and dividends. You should consult your tax consultant and read the Options Disclosure Document (ODD) prior to investing in options. You can obtain a copy of the ODD from the Options Clearing Corporation (1888-options). This website and its contents are directed to US residents and citizens. They are not directed at residents or citizens of any other country.

Disclaimer of Liability:
Investing DAZE's educational service and any other information disseminated from Investing DAZE (via email, phone, fax etc) is for informational purposes only and not for trading purposes. Investing DAZE’s information is an opinion of the staff of Investing DAZE and none of our information contained therein constitutes a recommendation by Investing DAZE or any of its contributors/employees to buy or sell a particular security, how to manage any portfolio and does not give personalized, directed advice. Investing DAZE’s service may not be suitable for every investor. You must contact a licensed broker for advice. Nothing from Investing DAZE can be deemed as specific advice or a recommendation to buy or sell. Past results are no guarantee of future results.