michael i've been very successful.. ..always limit risk at 10% with usually 2 year dte protective puts....selling naked puts and covered calls during those two years along with put adjustments such as rolling in or in and up to capture capital gains or rolling puts out...sticking with etf's usually iwm.....i have generated a steady stream of income without losing sleep...drjoe
--- In
ConservativeOptionS trategies@ yahoogroups. com, "optionsmike" <michael@... > wrote:
>
> Dr. Joe,
> Thanks for posting your strategy. This is one I'll have to think about and maybe paper trade it. It's a longer-term approach. How successful have you been with it?
>
> Michael
> www.safe-options- trading-income. com
>
> --- In
ConservativeOptionS trategies@ yahoogroups. com, "joe & leigh" <gass20@> wrote:
> >
> >
> >
> > --- In
ConservativeOptionS trategies@ yahoogroups. com, "optionsmike" <michael@> wrote:
> > >
> > > All,
> > > A question for the group. Does anyone in the group who uses covered calls ever collar the call with a protective put? My impression is that not too many people do.
> > >
> > > Michael
> > > www.safe-options- trading-income. com
> > >
> >
> >
> > mike i have a strategy that i usually have one open position.
> >
> > what i do is sell a naked put around 90 days out with the put atm
> > ex. may put on IWM IWM is 60.58 sell the 60 put at 3.15
> >
> > then i buy a protective put itm farthest one out
> > ex. jan 12 - 70 put for 15.16 with time value of only 5.58 for two years of protection that is a 9.3% max risk not factoring in 4% dividends over 2 years which brings it down to 5.3%
> >
> > if i don't get assigned on the short put i repeat it
> > if i get assigned i sell covered calls 90 days out with strike at cost basis
> >
> > over the next year i adjust the long protective put based on the changes of the underlying
> >
> > dr joe
> >
>
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