Gil,
My comment about not trading stocks was not designed to disparage anyone that does, only to point out that by not trading them you take away the extreme volatility that is inherent in news/takeover/
Have been trading options full-time for 11 months after trading stocks and Forex longer term. In the past I did employ covered calls for stocks that I owned, but this strategy was no longer viable for me when I determined that I would have to become a more frequent trader in the current market environment and get really good at picking stocks and timing.
The strategies I employ are designed to produce 3% - 5% monthly. Since selling options is independent of the market going up or down, theoretically these returns can be produced no matter what the market conditions, the only variable being premium due to volatility. Since December 1, I have banked over 30%.
Hope this answers your questions.
J
From: ConservativeOptionS
Sent: Thursday, April 08, 2010 1:30 PM
To: ConservativeOptionS
Subject: [ConservativeOption
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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