There is a trade-off between stocks and etf's: premiums
Arguably, less "risky" plays can be levered with increased exposure to get APY up - close to my annual average (50%).
Do you consistently get say 25-30% on your funds. If so that is great. But loss years do kill the strategy.
I do try to provide insight into my management features that may play out over time as more desirable. Of course everything has to be in place - most COS members probably experience - not.
G
--- In ConservativeOptionS
>
> Which is why I do not trade individual stocks..
>
>
>
> From: ConservativeOptionS
> Sent: Wednesday, April 07, 2010 11:32 PM
> To: ConservativeOptionS
> Subject: Re: [ConservativeOption
>
>
>
>
>
> Hundred percent agree with Dr.joe...I had a case that stock opened about 70 above previous day. One bad apple can ruin the entire portfolio.
>
>
>
> -----Original Message-----
> From: Gilbert Arevalo <gilbert_arevalo@
> To: ConservativeOptionS
> Cc: CoveredCallFund-
> Sent: Wed, Apr 7, 2010 11:06 am
> Subject: Re: [ConservativeOption
>
>
>
> DrJoe,
>
> This is just what my screen comes up with. I've mentioned this (in detail) to the Group: I used to use (1) biotech holding in my Model Portfolio, but do not anymore (for a few years). Meanwhile, we've seen this group perform just fine!
>
> It used to happen *only* ONCE per year, where the stock opened significantly lower and (less premium) , I'd be looking at a 25% - 35% overall loss on the position. With 20% of my MP in the position = 5-7% MP loss (that would be made up in a few months).
>
> Because my screen is so strict, like I said, this only happened once per year on average and was barely perceptible in my performance charts.
>
> But I gave this sector up just to rid the headache. I did point this out before. Right now premiums are low and biotechs still dominate. I just don't use them anymore, but some may.
>
> G
>
>
>
> _____
>
> From: joe & leigh <gass20@...>
> To: ConservativeOptionS
> Sent: Wed, April 7, 2010 10:45:52 AM
> Subject: [ConservativeOption
>
>
>
> gil,
> looks like a lot of biomed stocks...... what good is a stop loss if a stock is 40 you got 2 in premiums set stop loss for 38 and bad news comes out and stock opens at 30? which is not unusual especially with biotech/med stocks...and with a stop loss of just the stock minus premium i am truly amazed you aren't stopped out on almost every trade....drjoe
>
> >
> > If you haven't already joined, I'd welcome you to my new Y! Group:
> >
> > http://finance. groups.yahoo. com/group/ CoveredCallFund- <http://finance.
>
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