Saturday, August 22, 2009

Re: [TheOptionClub.com] Re: covered calls

 

PowerShares S&P 500 BuyWrite (PBP)


From: "Jacobson, Alex" <ajacobson@ise.com>
To: "OptionClub@yahoogroups.com" <OptionClub@yahoogroups.com>
Sent: Saturday, August 22, 2009 1:18:24 PM
Subject: Re: [TheOptionClub.com] Re: covered calls

 

There is an ETF you buy that writes monthly calls against the SPY. Don't remember if they are at or out of the money, but if you trade small the overall friction is a ton cheaper. I forget the symbol. There are also a series of ETFS coming late this year will actively manage SPY put credit spreads and spy iron condors. The filings and adjustment methodology will be coming - hopefully - in Q 4 or Q 1 of 10
I'll post to the list when they file


ISE educational presentations are now available via the iTunes Music Store. Visit Option Education @ Your Fingertips for free ISE podcasts. Sent from my Blackberry. Alex Jacobson ajacobson@ise. com. 1(917)2243711

From: OptionClub@yahoogro ups.com
To: OptionClub@yahoogro ups.com
Sent: Sat Aug 22 13:01:34 2009
Subject: Re: [TheOptionClub. com] Re: covered calls

 

Don,

This group would be a bonanza for you;

http://finance. groups.yahoo. com/group/ justcoveredcalls /

They are a very active group about CC. You could spend hours reading the archives full of good information.

I just want to say I dont prefer the method Chris described to you. If you want and expect an up market then selling calls will work against you. If I trade CC, I would have no CC un an up trend and sell 2 or 3 calls per 100 shares of stock during downtrends. Or I would always be short calls and roll them up and down to keep the strike price close to market. But this would only work with front month calls and may only yield 1%/ month.
You must also have an underlying that wont ever go away, and I dont know of anything 100% guarenteed. Gold and the SPY are you best bets tho. Gold will always have value as long as people are living on earth, I think...

Ross

But thats just me and the yahoo group I posted does not agree with me.
-------Original Message----- --
 
From: clslaw
Date: 08/21/09 09:55:33
Subject: [TheOptionClub. com] Re: covered calls
 
 

Selling in-the-money calls on the SPY should be working rather well right now, and will continue to work as long as the market stays in this upward trend.  The reason it is working is because the covered call is a bullish strategy that does not require much directional cooperation from the underlying security.  So long as you do not see a significant sell-off your positions will be profitable.

Markets change, though.  This rally will one day fade.  When?  No one can say.  It will change, though.  Your challenge is to educate yourself between now and then, so that you have a plan in place.  If you can provide us with some background on your trading and where you want to take it, we will have a much better opportunity to help you choose a reasoned path for your studies.

Christopher Smith
TheOptionClub. com


--- In OptionClub@yahoogro ups.com, "carolinaspring66" <spring@...> wrote:
>
> I have been doing covered calls on SPY,SELLING IN- MONEY CALLS ONE MONTH OUT.I know I have alot to learn.Could someone give me some advice?
>
> THANKS
>

 

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