Are you saying the PUTS you sell are 90 days? So instead of May you would be selling the July PUTS? And buying the Jan. 2011 (or later?) PUTS on contingency?
What is your logic on staggering the strike prices/ Is it that the odds are against all three being assigned and at that most times you will walk away unscathed on one or two strikes?
Sounds interesting!
Thanks,
Leo
From: joe & leigh <gass20@aol.com>
To: ConservativeOptionS
Sent: Mon, April 12, 2010 12:43:20 PM
Subject: [ConservativeOption
leo, correct. however i usually go out 90 days for expiration. using this method you would collect 11.27 the sum of the premiums.... .and if POT dropped to 104 a 10% correction you would own three hundred shares and then sell covered calls with strikes of
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... ..then if assigned go back to selling puts....if not assigned continue selling covered calls......if POT tumbles you have protective puts (i usually buy leap puts for protection). ....drjoe
--- In ConservativeOptionS trategies@ yahoogroups. com, Leo <leobusc@... > wrote:
>
> 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 trategies@ yahoogroups. com
> Sent: Fri, April 9, 2010 7:43:30 AM
> Subject: [ConservativeOption Strategies] Re: Update: Covered Call Candidates
>
>
> 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 eOptionS trategies@ yahoogroups. com] On Behalf Of zmostatabi@
> > > 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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