dale,
yes,,,i added an amendment in the paper so people don't have to calculate things like delta ratio....while not as accurate works well......look at your leap delta...if it is 0.90 and you have 10 contracts.....multiply 0.9 times 10 which is 9 and sell 9:10 ratio sc:lc....if you have 9 leaps ...0.9 times 9 is 8.1....round down and sell 8:9 ratio sc:lc
if you use interactive charts on yahoo and compare spy dia iwm efa etc they track each other...ie their correlation coeffienct is like 1.....with a small account i would select just one etf...either spy or iwm....
i am also considering a different way to enter a dls instead of using just a near month expiration for the short call but rather legging in a third at a time and going out to a 90 day call initially....i will post shortly my thoughts that will help i think ....drjoe
--- In ConservativeOptionStrategies@yahoogroups.com, Dale Johnson <outahere3982@...> wrote:
>
> Dr. Joe,
>
> I want to assure you that I have read and read your DLS paper. I've marked them up doing my calculations and printed out more. I get a little confused on the calculations for how many short sale contracts to write and I'm probably trying to make it more difficult. I understand the # leap contracts & leap delta. I get confused with the lower portion of the formula, delta ratio * short call delta. With that said, your examples state to use the leap delta as a ratio to make things as simple as possible. So what I've done on paper is this. If the leap delta is .90 and I have 9 leap contracts, using this ratio I would sell 8 short calls.  Is this correct?
>
> Also, on smaller accounts ($125,000), is it better to use only one ETF such as SPY as opposed to adding in IWM, EFA or others?
>
> Again, I do like the board.
>
> Dale JohnsonÂ
>
>
>
>
> ________________________________
> From: joe & leigh <gass20@...>
> To: ConservativeOptionStrategies@yahoogroups.com
> Sent: Thu, May 13, 2010 5:52:05 PM
> Subject: [ConservativeOptionStrategies] Re: deleting group?
>
> Â
> dale, there are no stupid questions... here, feel free to ask questions no matter how basic. all i ask of people is to read the dls paper, even if they don't understand everything, before they ask the questions. the whole reason i wrote the paper in the first place was i got a million questions about my strategy and i kept answering the same ones over and over and finally wrote the paper so people could refer to it. if there is something in the paper you don't understand or something you think you can improve on or modify ask and we can discuss it....drjoe
>
> --- In ConservativeOptionS trategies@ yahoogroups. com, "outahere3982" <outahere3982@ ...> wrote:
> >
> > Dr. Joe,
> >
> > I would also like to see this group kept open. I am one that usually only reads the posts because I feel like the questions I have are probably simple for the experts here and I just don't want to make myself to be a dummy? But I have studied your files, at length and have began paper trading like you suggest. I would be thrilled if you'd allow me to send you a couple of personal emails with some questions that I have. But either way, I do enjoy the board.
> >
> > Dale Johnson
> >
> > --- In ConservativeOptionS trategies@ yahoogroups. com, "joe & leigh" <gass20@> wrote:
> > >
> > > i started this group because when i was in another group people expressed interest in cash secured puts, covered calls, dls strategy for income....seems little interest.... so would like to know if anyone is still interested in keeping this group open....let me know....will be deleting it if there isn't one....dr joe
> > >
> >
>
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