mark,,,as my paper said when the cost basis is so below current prices i sell monthly calls with deltas at or less than 0.25.....there has only been a few months i had to roll them out...the income is not what i was planning but better than buy and hold waiting....i usually look for at least 0.50 per share...this strategy is difficult if you don't have sufficient capital/leaps invested....
--- In ConservativeOptionS
>
> Dr. Joe,
>
> I'm sure we are all in the same boat with the LEAPs underwater, i know am. I guess that i've messed up in that i've been too afraid to sell options uncovered and therefore have not been getting the income you have been. Would it be possible to share how you pick the strike price to sell your options and when you decide each month to do so? That would be very helpful.
>
> I have purchased new 2011 Leaps when the market was low but still own the OTM 2010 Leaps. I'm thinking of sell these for a big loss instead of holding on to them to expire while the market is up. Any thoughts on what to do with the 2010 OTM leaps?
>
> Glad you are back. I'm still liking this system even though the market has crashed. It still has a lot of merit.
>
> Thanks,
> Mark
>
>
>
>
> ____________
> From: joe & leigh <gass20@...>
> To: ConservativeOptionS
> Sent: Sun, November 29, 2009 7:27:26 AM
> Subject: [ConservativeOption
>
>
> Would love for members to post their strategies and post questions for other members.
>
> I am still trading the DLS and am satisfied considering the worst market correction in decades. I am trading a lot of naked puts and covered calls.
>
> Someone who bought a second home (condo) in a place like Florida at the high of the real estate market to rent and generate income....his condo's market value is probably 40% below his purchase price. I know, I live there. However, he is still able to generate monthly rent comparable to when the real estate market was high while he waits for his condo's value to return to purchase price.
>
> Well my leaps (condo) are well below cost basis. However, my current leap positions opened 39 months ago has generated about $3000/mo.(rent i generated). Initially, leaps were generating 8-10k per month and during the correction I was able to generate at least 1-1.5k per month...averaging over the time period the $3000/mo. My leaps are about the same % below purchase price than if I had bought a portfolio of buy and hold. The difference is I have generated $118,000 in premiums over the 39 months. Where the buy and hold owner generated no rent/income.
>
> I am finding that selling puts if managed well is easier and less time consuming than the DLS strategy.
>
> dr joe
>
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