Dr. Joe,
Thank you for the clarification. Now I understand that what we have here is truly a different way the "skin the cat." Like DLS, this strategy can continue until you choose to end it. I am very pleased to learn this as there are some stocks I plan to own but was not yet ready to write Cash Secured Puts in hopes of assignment. I am thinking we are not yet out of the woods with our economy. Now I have a tool to earn some premium while I wait to pick up the stocks at a price attractive to me and do so with better risk control.
Jack
From: joe & leigh <gass20@aol.com>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Mon, March 1, 2010 7:29:40 AM
Subject: [ConservativeOptionStrategies] Re: Covered calls with collars
Thank you for the clarification. Now I understand that what we have here is truly a different way the "skin the cat." Like DLS, this strategy can continue until you choose to end it. I am very pleased to learn this as there are some stocks I plan to own but was not yet ready to write Cash Secured Puts in hopes of assignment. I am thinking we are not yet out of the woods with our economy. Now I have a tool to earn some premium while I wait to pick up the stocks at a price attractive to me and do so with better risk control.
Jack
From: joe & leigh <gass20@aol.com>
To: ConservativeOptionS
Sent: Mon, March 1, 2010 7:29:40 AM
Subject: [ConservativeOption
jack i only do etf's. it would work for individual stocks because of the protection you have with the leap put. i keep the leap put until about 365 days to expiration then i role the put out another year. i continue selling puts and if assigned covered calls until stock is gone then go back to selling puts. drjoe every expiration i look at my leap put and will adjust if stock has risen to about the strike of the put. this decreases my risk and puts money in my pocket.
__._,_.___
.
__,_._,___
No comments:
Post a Comment