leo, correct. however i usually go out 90 days for expiration. using this method you would collect 11.27 the sum of the premiums....
105 (atm), 110 (5% otm) and 115 (10% otm) and the sum of the premiums would be close to the 11.27 you already collected...
--- In ConservativeOptionS
>
> Dr. Joe:
>
> So to illustrate by example are you saying:
>
> POT 115.19
>
> Sell May PUTS
> 115 $5.80
> 110 $3.50
> 105 $1.97
>
> At place a contingent order to buy three PUTS should POT fall below 104?
>
> Thanks,
> Leo
>
>
>
>
>
> ____________
> From: joe & leigh <gass20@...>
> To: ConservativeOptionS
> Sent: Fri, April 9, 2010 7:43:30 AM
> Subject: [ConservativeOption
>
>
> lou,
>
> i use protective puts for my short puts......i sell 3 short puts.....one atm, one 5% otm and one 10% otm with a contingent order to buy protective put when underlying drops 10%
>
> drjoe
>
> --- In ConservativeOptionS trategies@ yahoogroups. com, "Louis" <loupi3@> wrote:
> >
> > Which is why I am exploring protective puts.
> > Lou
> >
> > --- In ConservativeOptionS trategies@ yahoogroups. com, "Jeff" <jeffloeb@> wrote:
> > >
> > > Which is why I do not trade individual stocks..
> > >
> > >
> > >
> > > From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ
> > > Sent: Wednesday, April 07, 2010 11:32 PM
> > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > Subject: Re: [ConservativeOption Strategies] Re: Update: Covered Call Candidates
> > >
> > >
> > >
> > >
> > >
> > > Hundred percent agree with Dr.joe...I had a case that stock opened about 70 above previous day. One bad apple can ruin the entire portfolio.
> > >
> > >
> > >
> > > -----Original Message-----
> > > From: Gilbert Arevalo <gilbert_arevalo@ >
> > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > Cc: CoveredCallFund- Mentoring@ yahoogroups. com
> > > Sent: Wed, Apr 7, 2010 11:06 am
> > > Subject: Re: [ConservativeOption Strategies] Re: Update: Covered Call Candidates
> > >
> > >
> > >
> > > DrJoe,
> > >
> > > This is just what my screen comes up with. I've mentioned this (in detail) to the Group: I used to use (1) biotech holding in my Model Portfolio, but do not anymore (for a few years). Meanwhile, we've seen this group perform just fine!
> > >
> > > It used to happen *only* ONCE per year, where the stock opened significantly lower and (less premium) , I'd be looking at a 25% - 35% overall loss on the position. With 20% of my MP in the position = 5-7% MP loss (that would be made up in a few months).
> > >
> > > Because my screen is so strict, like I said, this only happened once per year on average and was barely perceptible in my performance charts.
> > >
> > > But I gave this sector up just to rid the headache. I did point this out before. Right now premiums are low and biotechs still dominate. I just don't use them anymore, but some may.
> > >
> > > G
> > >
> > >
> > >
> > > _____
> > >
> > > From: joe & leigh <gass20@>
> > > To: ConservativeOptionS trategies@ yahoogroups. com
> > > Sent: Wed, April 7, 2010 10:45:52 AM
> > > Subject: [ConservativeOption Strategies] Re: Update: Covered Call Candidates
> > >
> > >
> > >
> > > gil,
> > > looks like a lot of biomed stocks...... what good is a stop loss if a stock is 40 you got 2 in premiums set stop loss for 38 and bad news comes out and stock opens at 30? which is not unusual especially with biotech/med stocks...and with a stop loss of just the stock minus premium i am truly amazed you aren't stopped out on almost every trade....drjoe
> > >
> > > >
> > > > If you haven't already joined, I'd welcome you to my new Y! Group:
> > > >
> > > > http://finance. groups.yahoo. com/group/ CoveredCallFund- <http://finance. groups.yahoo. com/group/ CoveredCallFund- Mentoring/> Mentoring/
> > >
> >
>
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