How much you earn with covered options
Not so much but regularly. So I could make my experience in recent years summarized. An important success factor is the selection of the right stocks. Most suitable are the so-called boring, with options to act on them. They are highly liquid shares, which change little in their price movements and are therefore not as sexy and also meet the following conditions: first
They are usually optically expensive. That is, stocks with prices well under 10 € there are not more suitable. These are very popular, but for Stillhalterei inappropriate.
second Its implied volatility, which can be derived from the traded option prices should be measured by the index below average. At first glance, this makes little sense, you say, because after all, determine the volatility of the option price. Well, for me it is a measure of the volatility of the stock, which in turn is crucial for the Efolg of the writer.
third The stock and option should be liquid. Theoretically, there are all options traded on Eurex, as prices of market makers are made and adjusted. Accordingly, there is no risk, no other party for its own business to find. However, there is a downside. With little liquidity in the troubled market is the spread (Presidifferenz between the purchase and sale) wide, so you can often open up then only with great loss of the position or quit. Generally you should options- not try to get the timing right, but assume that the open position open also to maturity is maintained and then either exercised or expires.
4th Historical advantage of a strategy. Before I trade options, I look at the particular historical rates and rate my planned strategy with Excel. There are free courses are as under Yahoo. Often a simple analysis shows that it never deserved in the long term benefit if you happen to options sold. My analysis showed that as the RENT OF call options is rarely lucrative. The other hand, I RENT OF Puts seems quite profitable.
What vedient so a year, with sales of options. As I said not much. EON
example here is worth the sale of puts. If we take a put with the expiration in December 2011 we get 2.5 per share ahead of the dividend minus haircut. 1,5 €. Thus, the bottom line remain less than 10% per year, with a degree of risk that I will be tendered to the stock if it stands in one year under 20 €. Will I avoid or limit this risk, I buy a put at the lower strike price as at 17 and pay € 0.4. Then, however, reduces the potential gain to less than 6%.
There are also a number of other stocks, such as RWE, post office with which you can make money, but not with Lufthansa, where it is even worth to buy options in principle.
The best overview of the return of the covered options bitet portals with convertibles. These are based, namely the sale of puts. I myself look at the Bank of German.
http://www.xmarkets.de/DE/showpage.asp?pageid=69&pkpnr=42121
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