randy it would be helpful if you read my shortput paper in the file section. i go out 3 months at each expiration until i have a total of 3 months of option expirations for the short puts. that money will be in my account tomorrow for cash withdrawal for the month of june until june expiration at which time i will sell more puts to generate income for july by selling september expiration puts etc etc
what do you mean rolling....i'm not rolling anything and i have no clue what you mean borrowing against the future instead of earning income. that is earned income ask my tax accountant. that money will be generated and withdrawn monday. i have borrowed against nothing and the premiums are clearly income...drjoe
--- In ConservativeOptionStrategies@yahoogroups.com, Randy Harmelink <rharmelink@...> wrote:
>
> How can the income be "for the month" when the new positions are 3 months
> out?
>
> By more or less "rolling" the puts further out, aren't you just borrowing
> against the future instead of earning income? What happens when you run out
> of time to borrow against?
>
> What am I missing?
>
> On Sat, May 22, 2010 at 8:09 AM, joe & leigh <gass20@...> wrote:
>
> > this week,
> >
> > i sold the 58 august iwm put for $3, 10 contracts
> > i sold the 99 june spy put for $2.15, 10 contracts
> >
> > i had the iwm puts: may 65 (6 contracts), 68 (7 contracts) and the 71 (7
> > contracts)
> >
> > i will be assigned on the 68 and the 71.
> >
> > i will sell august covered calls on each at cost basis strikes of 68 and
> > 71, current premiums of 3.4 for the august 68 and 2.16 for the august 71.
> >
> > i will also sell the august 59 iwm put at 3.19 (6 contracts) approx 10%
> > otm.
> >
> > so for the month i will have collected approximately 10,900 in premiums
> > meeting my income goal with no position having a strike below cost basis in
> > spite of a significant drop in the underlying issues.
> >
> > drjoe...i will update when trades made on monday morning...
> >
>
Hey, thanks for the information. your post s are informative and useful.
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