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theregans

theregans
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  • How Does VXX's Daily Roll Work? [View article]
    Unless you are on the other side of that trade....
    Jan 20, 2015. 04:47 PM | 1 Like Like |Link to Comment
  • Closing Out My Long Volatility Position And What's Next [View article]
    Yes. They Expire on Jan 16
    Dec 17, 2014. 07:31 AM | Likes Like |Link to Comment
  • Closing Out My Long Volatility Position And What's Next [View article]
    I sold a bunch of $75, $80 and $85 Jan monthly calls naked. The premium is just insane. ROI north of 15% in less than 30 days.
    Dec 16, 2014. 10:42 PM | Likes Like |Link to Comment
  • BP Is A Strong Buy, But Not Because Of Takeover Speculation [View article]
    This is a complete no brainer just as $AAPL was last year in the $400's and $NFLX was a few years back around $75.00. I started my position today @ $38.50 and I hope it continues to crater so I can build a full position in the coming weeks and months. In my lifetime, I have seen opportunities like this time and time again. I would always say that is a steal and I would enter the position. I would then prove impatient in my younger years, wanting to see immediate returns and confirmation of my bias. Only to sell too early and then watch in horror as each one of them recovered and soared. As I have gained experience and gotten older, I have learned to be much more patient.

    Thank God I caught $AAPL last year. I will not miss $BP this time as I did at the time of the spill. I am grateful for this second chance at this great company!
    Dec 9, 2014. 05:23 PM | 1 Like Like |Link to Comment
  • How To Trade Volatility When The Roof Caves In [View article]
    It is a small position in my portfolio. I am primarily an option trader. I am aware of the risks. I am also very aware of the rewards. This is an excellent risk reward in my opinion. Especially in high IV times. In my lifetime I have yet to see vol not revert to the mean. It ALWAYS does.

    There is always more to the story at first glance. They say selling naked calls can wipe you out. I guess that is true if you lever up to the max and it moves against you. I am selling way out of the money calls. When vxx spiked to almost $45.00 I was selling Nov monthly $75.00 calls for a more than 30% ROI.

    Buying the VIX is a directional trade. You're right you win your wrong and you lose. Selling calls in small lots during all times has kept me in the game. I go as much as 10X my position size in high vol markets. Never using up more than 25% of my capital. Could I get totally wiped out? I guess in theory anything is possible. I sleep very well with this strategy in place. I can be wrong about direction and still make money. Collecting some of the richest premium available in the options markets while playing it safe with my guidelines and rules. It is not for everybody, but it works for me!
    Oct 25, 2014. 10:41 AM | 1 Like Like |Link to Comment
  • How To Trade Volatility When The Roof Caves In [View article]
    I short $VXX calls as a regular trade all the time. Small position untill $VIX spikes like it did last week. At this time I load up the truck and short larger amounts of calls on the $VXX. This has proved to be a very successful trade for me. I short way OTM calls. Last week I was shorting $75.00 calls when the $VXX was in the low 40.00's. The return on capital was north of 30% for a 30-45 day trade. I shorted several different expiration dates. I have yet to have to roll up and or out with this trade. Although I am sure one day I will. Once I collect premium, I NEVER EVER give it back!
    Oct 22, 2014. 11:48 AM | Likes Like |Link to Comment
  • It's Time To Get Short Volatility [View article]
    That's what it takes to make a market. Just when you think you have it all figured out, know there is someone on the other side who has the exact opposite view that you have. They are also willing to put their money where their mouth is too....

    So far my $55 & $56 Nov. $VXX calls I sold are way under water on paper. With the $VXX trading around $41.00 I'm still OK. I may have to roll up and out if we breech $50.00 That is my line in the sand.

    Once I collect premium, I never EVER give it back. My time horizon might change, it may change my annualized ROI, but I will manage these trades so that the overall health of my portfolio remains positive.
    Oct 16, 2014. 10:57 AM | Likes Like |Link to Comment
  • It's Time To Get Short Volatility [View article]
    Yes you are correct in that. However I don't allow my position size on any 1 trade to go past 5% of my account. By diversifying in this way I avoid a cataclysmic event that could wipe me out totally. I sell short calls and puts on several underlying in my trading account. Only use 50% of my capital at any given time. If you know what you are doing, the reward makes the risk worthwhile.
    Sep 30, 2014. 10:20 AM | 1 Like Like |Link to Comment
  • It's Time To Get Short Volatility [View article]
    I think another good way to play this is to short VXX call options. I have been doing this for some time now with great success. It provides an added margin of safety.

    For example as I write this one could sell the $55.00 call strike for Nov and collect a credit of $46.00 on an outlay of $347.00 for a return of 13% minus fee's in less than 2 months with an almost 100% safety factor with the VXX trading around $30.00

    Just another way to skin the same cat....
    Sep 29, 2014. 11:20 AM | Likes Like |Link to Comment
  • Investors Can't Believe The Apple Hype [View article]
    I think you make a legitimate case for trading around the stock. For those of us holding it for the long term we just continue to cash in our dividends and watch to see how high this will go in the coming years.
    Sep 17, 2014. 01:21 PM | 8 Likes Like |Link to Comment
  • Maybe You Shouldn't Pay Off Your Mortgage [View article]
    As a fellow Canadian I highly recommend you look into the "Smith maneuver". Get a HELOC and use the funds to invest in blue chip high dividend paying stocks and deduct the interest on the HELOC hence making your "Canadian EH" mortgage totally deductible!
    Sep 2, 2014. 12:58 PM | 1 Like Like |Link to Comment
  • Maybe You Shouldn't Pay Off Your Mortgage [View article]
    Amen! Some people just don't get it.... If you buy a basket of stocks earning say a reasonable 4% dividend and can borrow @ even 3.75% over 30 years you will be far ahead of the game in the long run. Oh and this would be a worst case scenario... I am closer to 5% yield on my dividend portfolio of mainly blue chips...
    Sep 2, 2014. 11:31 AM | 3 Likes Like |Link to Comment
  • Apple's Intrinsic Value And The Market's Irrational Valuation [View article]
    You should sell OTM weekly calls against your leaps to combat time decay and sit tight. Eventually the market will value AAPL appropriatly. It is irationally pricing it far below market value IMHO. In the short term the market is a popularity contest. In the longer term it is a weighing machine...
    Jan 30, 2014. 10:16 PM | 3 Likes Like |Link to Comment
  • Marrying The 4% Rule With Dividend Growth Investing [View article]
    Why is everybody content with 4% return per year? You can easily double that with little to no risk using options on all of your high dividend stocks. Selling covered calls is an excellent strategy to increase your yield. Selling puts to enter back in if called away is another. Actively trading these stocks based on a proven technical approach is still yet another. I fully intend to retire at a much younger age than my colleagues only because I am an informed and active trader / investor. I am more than on my way to reach my goals and I am still in my forties with the big 50 in 2 years as my goal date.
    Dec 1, 2013. 08:59 PM | 1 Like Like |Link to Comment
  • Apple: Another Problem With The Bears' Logic [View article]
    People buy it based on what it will cost them up front and as long as the monthly plan is in line with what they are already shelling out.

    Where do I sign????
    Nov 14, 2013. 04:05 PM | 1 Like Like |Link to Comment
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61 Comments
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