We're all worried about the downside. But its never easy making a case for the upside.
You don't have to be all in with equity covered calls. Craft a portfolio with fixed income TLT, some commodity Etcs like DBA, DBB, UNG, etc.
Yes, the SPX can sell off 17 percent and still be above its bullish trend line. Many sectors have pulled back since September. Reduce risk by switching out of individual names into SPY, QQQQ, XLU, IWM etc.
Bill
From: zmostatabi@aol.com
Date: Wed, 09 Dec 2009 22:54:41 -0500
To: <ConservativeOptionStrategies@yahoogroups.com>
Subject: Re: [ConservativeOptionStrategies] put strategies
Selling put just works in bull market as we are experiencing SINCE March. watch out!!
-----Original Message-----
From: Bob Hug <rchug@bellsouth.
net>
To: ConservativeOptionStrategies@yahoogroups.com
Sent: Wed, Dec 9, 2009 5:53 pm
Subject: Re: [ConservativeOptionStrategies] put strategies
John:
With Radioactive Trading, as it is set up today, you will outperform in a bear market (but still lose money) and under perform in a bull market. The strategy has a place for very conservative investors who want to, or must, hold onto stocks.
Bob
----- Original Message -----
Sent: Tuesday, December 08, 2009 4:36 PM
Subject: [ConservativeOptionStrategies] put strategies
| Since puts seem to have center stage, and we may have learn to live with a down trend for a while (I'm scared!)
There is another strategy out using puts there I don't quite understand yet ---Radioactive trading -- he buys a stock, sells a far out month deep ITM Call and then writes slightly OTM calls. Claims with rolling and jiggling, He can make money with next to no down side risk. I have heard bits and pieces, they do webinars every tues and thurs noon EST and I am busy then. But what little I have heard makes me believe in snake oil -- anyone else heard of ths??
|
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