DLS call vs. DLS put? The strategies are the same and hence one's outlook on the market and expected return is the same. If there is any difference it lies in possible ease of trading and which might give a slightly greater yield (the old question of credit vs. debit spreads).
Bill
----- Original Message -----From: joe & leighSent: May 11, 2010 11:44 AMSubject: [ConservativeOptionStrategies] Re: Dr. Joe: Do You Have A DLS Strategy Using PUTS for Protection? leo, people do double diagonals, dls on calls and puts at same time, some people do just put dls, some do just call dls....is one better than the other? don't know. depends on the person's experience.
i've found i can do well with calls even during corrections. someone just posted asking how dls did during 2008/2009 asking for returns. % returns to me mean nothing. again that is just me. i have x amount of cash allocated to dls. from that i decided a monthly dollar goal. for me it is 5000 per month. for me to decide if dls strategy is a success is with a downturn was i able to achieve my goal....(MY GOAL, not yours)......and if you read my paper if 1,000,000 was assigned to dls only probably a 25-40% would be in the leap calls and the rest in a dls cash account to purchase just enough more leaps to sell short calls against to meet my monthly goal when there is a major correction. during 2008 and 2009 it was a success. when the market is trending up or flat i am able to generate 10-12,000 per month....during the 2008-09 ....i had to use the cash account to purchase additional leaps and had plenty of cash with alot remaining to generate 5000/month.. ...as the market has rebounded in 2009-2010 much more than 5000 is generated per month.....drjoe
--- In ConservativeOptionStrategies@ , "leobusc" <leobusc@...> wrote:yahoogroups. com
>
> Dr. Joe:
>
> I was trying reinact the past week and devise a plan that allows protection for these bearish times.
>
> It really doesn't make sense to spend so much for home insurance and next to nothing for porfolio insurance.
>
> I think there is nothing wrong with setting aside 3-4% a year for protect against possibly 2-3 10%+ corrections in a year.
>
> My thought was to use your leap diagonal strategy only with PUTS. Buying a Dec 2011 (not sure of correct Delta) and selling current month PUTS against it. Adjustments can be made as the market moves up and down helping to take in more premium, cut costs and assure some added protection should the market go against me.
>
> What do you think?
>
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