"I bought more Leaps as the market went down"
Ken, what triggered your decision to buy more leaps? Were you looking at percentage drop from the average cost, or perhaps every 2.5 or 3 points in depreciation? And when you bought more leaps, did you immediately sell new calls against them? If so, were they ATM calls or the same calls you already had? That drop in equity had to be gut wrenching!!
Thanks,
RFH
--- In ConservativeOptionS
>
> Rob:
>
>
>
> I also started trading it in 2008 (a bit after you) and the market went into
> the toilet, but based on my feeling that the market would come back, I
> followed the DLS "plan" even though my worst drawdown was probably on the
> order of about 35%-40% or a bit more. I bought more Leaps as the market
> went down, sold appreciated Leaps when I had to buy back SC's that were ITM
> on the way back up, and overall have generated significant income along the
> way, and my Leap positions are now also very much in the green as well. I
> rolled the Long Leaps when appropriate and am quite happy with the overall
> results even though I will be honest and say I did have some 2nd thoughts
> during the worst of it, but having been through several severe "crashes"
> before, I felt the market would come back, and even though not to its
> original highs, my perseverance has definitely paid off.
>
> I used 3 ETF's along the way, SPY, IWM and EFA and am actually hoping for a
> bit of a retracement to be able to invest more cash at better prices in the
> strategy.
>
>
>
> Hope this helps.
>
>
>
> Ken
>
>
>
>
>
> From: ConservativeOptionS
> [mailto:ConservativeOptionS
> Sent: Monday, March 01, 2010 11:47 PM
> To: ConservativeOptionS
> Subject: [ConservativeOption
>
>
>
>
>
> Ken, I must have missed the post, but how long have you been trading the
> Call DLS? I started in January of 2008 and did very well until the downturn.
> I pre-decided to stop if the account declined 20% from my starting point. I
> stopped, but with a little more than a 20% loss.
>
> RFH
>
> --- In ConservativeOptionS
> <mailto:Conservativ
> <ken_ginsberg@
> >
> > Jeff:
> >
> >
> >
> > DrJoes DLS strategy that I have been trading is his DITM Leap Call
> Strategy
> > vs. Monthly Short Calls as detailed in his paper in the files section. I
> > have not used his Leap DITM Put strategy, although after reading his paper
> > and some of his posts here I will be spending some time studying it and
> > possibly implementing it at some time in the near future if I find I
> > understand it as well as I do his DLS strategy.
> >
> >
> >
> > Ken
> >
> >
> >
> >
> >
> > From: ConservativeOptionS
> <mailto:Conservativ
> > [mailto:ConservativeOptionS
> <mailto:Conservativ
> srj3inc
> > Sent: Saturday, February 27, 2010 3:40 PM
> > To: ConservativeOptionS
> <mailto:Conservativ
> > Subject: [ConservativeOption
> >
> >
> >
> >
> >
> >
> >
> > --- In ConservativeOptionS
> <mailto:Conservativ
> > <mailto:Conservativ
> > <ken_ginsberg@
> > >
> > > Jeff:
> > >
> > > Let me just say I have been trading DrJoes DLS strategy since ...
> >
> > ------------
> > Ken,
> >
> > Great to know that DLS is working for you.
> >
> > Can you pl. update us if you are trading the LEAP strategy or selling
> short
> > term PUT against the DITM LEAP PUT strategy?
> >
> > Thanks,
> >
>
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