Charles,
I believe there's a paper in the file section outlining in some detail drjoe's strategy.
But even without that, just add up the strike prices x 100 which is 35,500 and multiply that by 10 puts each and you come up with 355,000. Add another roughly 135,000 for the 21 IWM May puts which were either expired or assigned and you'll get a quick and rough estimate of $500,000 in play, plus whatever else may be in the portfolio. A rough figure and there are other factors involved, but if you need 10K a month, like always, you've got to pay to play.
Lou
--- In ConservativeOptionStrategies@yahoogroups.com, CHARLES I WEBSTER III <kipwebster@...> wrote:
>
> Is your 10k+ put premium income for MAY or for JUNE 2010?????........What SIZE trading
> account produces THIS level of Monthly income ??????     Tks for your reply...KipYou're never old, unless
> you think you are; but it
> IS later than you think!
>
>
> kipwebster@...
>
>
>
>
> ________________________________
> From: joe <gass20@...>
> To: ConservativeOptionStrategies@yahoogroups.com
> Sent: Wed, May 26, 2010 1:26:39 PM
> Subject: [ConservativeOptionStrategies] Re: may expiration
>
> Â
> update, for month
>
> 58 august iwm put....3000
> 99 june spy put..2150
> 71 aug cc 2.05 or 2246
> 68 aug cc 2.23 or 1420
> 59 aug put 3.25 or 1935
> total 10,451
>
> drjoe
>
> --- In ConservativeOptionStrategies@yahoogroups.com, "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 posts are informative and useful. I am regularly following your posts.
ReplyDeleteArvind Virmani