Option Trading Articles: Re: [ConservativeOptionStrategies] I'm getting killed this cycle

Thursday, May 20, 2010

Re: [ConservativeOptionStrategies] I'm getting killed this cycle

Ah the old saying " SELL IN MAY AND WALK AWAY" true atleast for now

--- On Tue, 5/11/10, wavemechanic <olesmithy@gmail.com> wrote:

From: wavemechanic <olesmithy@gmail.com>
Subject: Re: [ConservativeOptionStrategies] I'm getting killed this cycle
To: ConservativeOptionStrategies@yahoogroups.com
Date: Tuesday, May 11, 2010, 6:42 AM

Cash is certainly always safe. However, without some analysis as to market direction one would always be in cash not knowing whether the market is going up or down. As a result, one should, imo, use at least some basic analysis (technical and/or fundamental) so that appropriate strategies can be used for bear, bull and flat markets for the time frame of interest which together with proper money management will either keep you on the right side of the market or pull you kicking and screaming onto the right side (e.g., use of stops).

I don't use fundamentals but in the technical world just about every IT analysis (mine and others) pulled in the bull horns in late April which was plenty of time to get into cash or a more aggressive bearish posture (e.g., bearish option strategies, inverse ETFs, etc.). Works for me - year after year.

Bill

----- Original Message -----

From: Gilbert Arevalo

To: compoundstockearnin gs@yahoogroups. com

Cc: CoveredCallFund- Mentoring@ yahoogroups. com ; ConservativeOptionS trategies@ yahoogroups. com

Sent: May 09, 2010 7:23 PM

Subject: [ConservativeOption Strategies] I'm getting killed this cycle

The safest place to be during a market correction is cash. Especially when managing high-risk or for higher returns. Never be in a position where you are hoping the worst may not happen. It takes a 100% return to make up a 50% loss and a 300% return to make up a 75% loss.

Many may feel that a loss isn't a loss unless you sell your stock. But if you have underwater capital for years - even if taking in "income" - you are not really taking advantage of the power of compounding.

I demonstrate this at my new Y! Group - http://finance. groups.yahoo. com/group/ CoveredCallFund- Mentoring/

G

From: Stanley P. <jeff@simiangroup. com>
To: compoundstockearnin gs@yahoogroups. com
Sent: Sat, May 8, 2010 5:08:59 PM
Subject: compoundstockearnin gs I'm getting killed this cycle

I take higher beta stocks for bigger premiums...like RIMM, AIG, MU, UAUA, DNDN, etc, etc. And when the market drops, they get hammered. Am I alone? Please tell me I'm not. I trade about $1mm a cycle, and I must be down $100k...frankly I'm afraid to look. When the market dives, there's no real downside protection except the offset from the CC premium...which is like fighting a forest fire with a garden house. Ugh. I haven't felt this way since those awful days of '08. I hope they're not returning, via Europe.