Option Trading Articles: RE: [ConservativeOptionStrategies] Re: Covered calls with collars

Mike:

I believe I said about 20% yr, which is a bit less than 2% monthly on the entire DLS portfolio (fixed income cash + leaps).

But to answer your question, yes, this is the calculation in the 2008 paper; the hypothetical 500k DLS investment was broken down into an investment in LEAPS (which in his example was ~197k) and the balance (~303k) in cash or SAFE and liquid fixed income. The cash to be used for buying more long leaps when appropriate or rolling out when appropriate (if cash should be necessary to do so).

Hope this answers your question.

Ken

From: ConservativeOptionStrategies@yahoogroups.com [mailto:ConservativeOptionStrategies@yahoogroups.com] On Behalf Of mike xue
Sent: Saturday, March 06, 2010 1:21 AM
To: ConservativeOptionStrategies@yahoogroups.com
Subject: RE: [ConservativeOptionStrategies] Re: Covered calls with collars

Hi Ken,

Just to clarify, so you were getting about 2% a month on DLS portion of the portfolio in 2008 & 2009. In Dr. Joe's 2008 paper, he allocated 500k (33.3% of 1.5 mil) for DLS. So your 2%/month return is based on 500k in his example, right? Just want to understand more clear.

Thanks much,

Mike

--- On Tue, 3/2/10, Kenneth Ginsberg <ken_ginsberg@yahoo.com> wrote:

From: Kenneth Ginsberg <ken_ginsberg@yahoo.com>
Subject: RE: [ConservativeOptionStrategies] Re: Covered calls with collars
To: ConservativeOptionStrategies@yahoogroups.com
Date: Tuesday, March 2, 2010, 8:37 AM

Jeff:

On my overall $$'s allocated to the DLS strategy (which includes significant cash earning fairly miniscule returns) it is approximately 20% a year, if you look at only the dollars invested in the actual Long Leaps and $$'s received from the sale of short calls, it is a bit over 32% avg ann return.

Ken

From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of Jeff
Sent: Tuesday, March 02, 2010 7:20 AM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: RE: [ConservativeOption Strategies] Re: Covered calls with collars

Ken,

What is your avg. annual return since 2008?

Thanks,

Jeff

From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of Kenneth Ginsberg
Sent: Tuesday, March 02, 2010 1:24 AM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: RE: [ConservativeOption Strategies] Re: Covered calls with collars

Rob:

I also started trading it in 2008 (a bit after you) and the market went into the toilet, but based on my feeling that the market would come back, I followed the DLS "plan" even though my worst drawdown was probably on the order of about 35%-40% or a bit more. I bought more Leaps as the market went down, sold appreciated Leaps when I had to buy back SC's that were ITM on the way back up, and overall have generated significant income along the way, and my Leap positions are now also very much in the green as well. I rolled the Long Leaps when appropriate and am quite happy with the overall results even though I will be honest and say I did have some 2^nd thoughts during the worst of it, but having been through several severe "crashes" before, I felt the market would come back, and even though not to its original highs, my perseverance has definitely paid off.

I used 3 ETF's along the way, SPY, IWM and EFA and am actually hoping for a bit of a retracement to be able to invest more cash at better prices in the strategy.

Hope this helps.

Ken

From: ConservativeOptionS trategies@ yahoogroups. com [mailto:Conservativ eOptionStrategie s@yahoogroups. com] On Behalf Of RobertH
Sent: Monday, March 01, 2010 11:47 PM
To: ConservativeOptionS trategies@ yahoogroups. com
Subject: [ConservativeOption Strategies] Re: Covered calls with collars

Ken, I must have missed the post, but how long have you been trading the Call DLS? I started in January of 2008 and did very well until the downturn. I pre-decided to stop if the account declined 20% from my starting point. I stopped, but with a little more than a 20% loss.

RFH

--- In ConservativeOptionS trategies@ yahoogroups. com, "Kenneth Ginsberg" <ken_ginsberg@ ...> wrote:
>
> Jeff:
>
>
>
> DrJoes DLS strategy that I have been trading is his DITM Leap Call Strategy
> vs. Monthly Short Calls as detailed in his paper in the files section. I
> have not used his Leap DITM Put strategy, although after reading his paper
> and some of his posts here I will be spending some time studying it and
> possibly implementing it at some time in the near future if I find I
> understand it as well as I do his DLS strategy.
>
>
>
> Ken
>
>
>
>
>
> From: ConservativeOptionS trategies@ yahoogroups. com
> [mailto:ConservativeOptionS trategies@ yahoogroups. com] On Behalf Of srj3inc
> Sent: Saturday, February 27, 2010 3:40 PM
> To: ConservativeOptionS trategies@ yahoogroups. com
> Subject: [ConservativeOption Strategies] Re: Covered calls with collars
>
>
>
>
>
>
>
> --- In ConservativeOptionS trategies@ yahoogroups. com
> <mailto:Conservative OptionStrategies %40yahoogroups. com> , Kenneth Ginsberg
> <ken_ginsberg@> wrote:
> >
> > Jeff:
> >
> > Let me just say I have been trading DrJoes DLS strategy since ...
>
> ------------ ------
> Ken,
>
> Great to know that DLS is working for you.
>
> Can you pl. update us if you are trading the LEAP strategy or selling short
> term PUT against the DITM LEAP PUT strategy?
>
> Thanks,
>