jeff, (hypothetical)
you are in real estate and have 400,000 to invest. you plan to purchase some properties to rent out for monthly income. you find a nice property that will give you the income you desire per month. you buy the property for 100,000 and will be able to collect monthly rent that totals 10,000 per year. so you buy the property and put aside the remainder of the 400,000 to purchase additional properties should there be a drop in home values. during the first year you collected 10,000 and someone asks you what was your percent return. what would you say?
if you say 10%, i would ask you how much is the home appraised for now?
my point is you don't get your home appraised on a daily or monthly or yearly basis...usually only when you plan to sell.
if property values fall and your home and similar ones are now 60,000 ..you probably would use some of the money you set aside to purchase more property.
buying home for rent is buying a ditm leap call and the rent i get is from selling monthly covered calls. and if my leap calls drop in value i use some of my dls cash to dollar cost average down. per my strategly there is several cash accounts: a fixed income plus a dls cash account for purchasing new leaps....drjoe
--- In
ConservativeOptionS trategies@ yahoogroups. com, "Jeff" <jeffloeb@.. .> wrote:
>
> Ken,
>
>
>
> What is your avg. annual return since 2008?
>
>
>
> Thanks,
>
>
>
> Jeff
>
>
>
> From:
ConservativeOptionS trategies@ yahoogroups. com> [mailto:
ConservativeOptionS trategies@ 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 2nd 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:
ConservativeOptionS trategies@ 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> <mailto:Conservativ eOptionStrategie s%40yahoogroups. 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:Conservativ eOptionStrategie s%40yahoogroups. com>
> > [mailto:
ConservativeOptionS trategies@ yahoogroups. com> <mailto:Conservativ eOptionStrategie s%40yahoogroups. com> ] On Behalf Of
> srj3inc
> > Sent: Saturday, February 27, 2010 3:40 PM
> > To:
ConservativeOptionS trategies@ yahoogroups. com> <mailto:Conservativ eOptionStrategie s%40yahoogroups. com>
> > Subject: [ConservativeOption Strategies] Re: Covered calls with collars
> >
> >
> >
> >
> >
> >
> >
> > --- In
ConservativeOptionS trategies@ yahoogroups. com> <mailto:Conservativ eOptionStrategie s%40yahoogroups. com>
> > <mailto:Conservativ eOptionStrategie s%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,
> >
>
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