Anthony,
I've been using CC's and CSP's, but my portfolio is based around stocks. As I'm learning more about options, I'm in the early stages of switchin to options as the basis of my portfolio, or at least a significant part of it.
Could you give some specific examples of how your method worked for you?
Thanks,
Lou
--- In ConservativeOptionS
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> I use Jan 2011 calls in the money around the next strike down as coverage for my front month sold calls.When the market dips the premium content of my long calls tends to expand therefore cushioning the fall and placing an absolute limit on loss in case of a major move down.This market is too scary not to use options as coverage since one cannot even access ones account at Schwab when there is a crash,the servers overloaded there the other day with the 1000 point crash.Only problem is the spreads on some lesser traded stocks are pretty wide. I stay away from those stocks.I tend towards bluechips like PEP, KO ,COST, JNJ, KMB, since they have lesser moves.I like sideways charts. Large premiums on volatile stocks are tempting but dangerous. I also use GLD and SLV to sell long term calls on [Jan 2011].Good luck to everyone in this uncertain market!
> ____________
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> Anthony Hills
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> Hills Motors/Hills Industries
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> 4011 Pacific Blvd
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> San Mateo,CA 94403.
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> 650 573 7425
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> Fax 650 573 8721
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