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dwallen

dwallen
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  • It's A New Day [View article]
    christine/ray,

    that is what i was hinting at for an article. holding underwater positions for long may be counter-intuitive, but could validate the strategy.
    Dec 24 07:05 PM | 1 Like Like |Link to Comment
  • It's A New Day [View article]
    Thanks. Just out of curiosity...

    i believe that when you have a lot that is under water, you just leave those shares uncovered until the premiums at/near your entry point meet your criteria (say 1% for 30 days). By that i mean you don't roll the dice and sell calls far below your entry point or accept paltry premiums-- you just remain patient even if for long periods of time. (of course, i refer to stocks you don't believe are broken.)

    I'm curious if you've ever done a comparison to SP500 for those kind of holdings. That could make an interesting article.
    Dec 23 12:51 PM | Likes Like |Link to Comment
  • It's A New Day [View article]
    i still don't really get the concept of trading lower priced shares of a particular stock to offset losses of a higher priced lot.

    let's say you do another WLT trade for a 1% gain, but passed up 1.5% gain on XYZ to do so. of course, assuming all else being equal...
    Dec 22 10:34 PM | Likes Like |Link to Comment
  • Equity CEFs: Which Funds To Buy And Sell Right Now - Part III [View article]
    i understand why ROC in the option income funds is not destructive, but i'm not sure i understand why JTAs wouldn't be.
    Nov 21 03:43 PM | Likes Like |Link to Comment
  • Team Alpha Portfolios: Moving Away From Positions To Add Positions [View article]
    Right. I try to only sell at the strike near my entry point. The times i got impatient and sold CCs below my entry point, thinking the stock couldn't possibly rebound that quickly-- it almost always did.

    NEM is a good example. I was in at $30 , but thanks to selling weekly and monthly calls, i'm already ahead. If i get called away at $30 after a few months of collecting 1-1.5% per month in premiums, i'm happy.

    Selling calls in a bull market like this has been will lead to underperformance, though. I have a few other positions that will probably get exercised next month. I don't lose much sleep over that. But i do tend to focus on selling CCs on either my losing positions or ones that seem range-bound.

    I wish i would have added in my original post that i wasn't questioning RS's decision to sell NEM. I only mentioned CCs because it sounded like he was keeping a partial position, and CCs might help that remaining position.

    RS knows way more about investing than i ever will. That's why i follow him and receive his email alerts.
    Nov 15 04:17 PM | 1 Like Like |Link to Comment
  • Team Alpha Portfolios: Moving Away From Positions To Add Positions [View article]
    NEM *usually* has enough volatility that you can earn better than 1%/mo by selling a covered call one month out. I am still underwater in my NEM shares, but if i add in what i've earned in CCs, it has been quite profitable. It is not unlike a 12-15% dividend yield.

    Selling CCs on anything in the portfolio that is underwater is worth looking into.
    Nov 14 12:52 PM | 1 Like Like |Link to Comment
  • Regaining And Maintaining Trust In Digital Realty [View article]
    oops...

    SWAN while the house burns down? :)
    Oct 30 06:39 PM | 2 Likes Like |Link to Comment
  • I Love Caterpillar [View article]
    Nice article. CAT has been a cash cow. Selling more puts as we speak.
    Oct 23 01:39 PM | 1 Like Like |Link to Comment
  • Getting Back To Business [View article]
    thank you, sir! much appreciated
    Oct 21 01:09 AM | Likes Like |Link to Comment
  • Getting Back To Business [View article]
    >> Currently, the option market is implying nearly a 9% move.

    sure wish i knew how to calculate this sort of thing
    Oct 20 06:03 PM | Likes Like |Link to Comment
  • Intel Has Been, And Still Is, A Lousy Stock For Investors [View article]
    i'm a retired "techie geek" and might be offended other than the fact that you are dead on.

    i was lucky enough to sell most of my holdings at the height of dotcom, and sell the rest at one of the fairly high points in the last 10 years.

    INTC is the poster-boy for "the lost decade". The yield notwithstanding, i only see it as a trading stock. While the next decade may be better than the last, there are loads of better investments out there. And even if i'm wrong about it, there's lots more stocks i'd rather risk being wrong about for a long-term investment.
    Sep 4 08:18 PM | 2 Likes Like |Link to Comment
  • Put-Write ETF Focuses On Income [View article]
    That trade would actually be below my ROI requirements.

    I basically sell puts one month out or less, including weeklies. Using my calculation, the minimum I consider is 1% for a month or less. As far as GCI goes (just to continue with your example), if the JUN 20 were a nickel higher, I'd start to get interested.

    Of course, your trade has a much higher margin of safety, but I find it difficult to quantify safety versus ROI.
    May 30 02:59 PM | Likes Like |Link to Comment
  • Put-Write ETF Focuses On Income [View article]
    but in 2008-9 your apartment building was down well over 20%.

    that's why the only calculation that makes sense to me is based on the full at-risk amount.

    apples and oranges...
    May 28 04:40 PM | Likes Like |Link to Comment
  • Put-Write ETF Focuses On Income [View article]
    I see. I use the if-assigned value, so to me that would be 5%.

    Even then, I see very few premiums that high unless going out 90 days. I usually try to stick close to 30 days, rarely 60 days. I try to avoid earnings surpises which is hard to do at 90 days.

    Thanks for the clarification.
    May 28 11:16 AM | Likes Like |Link to Comment
  • Put-Write ETF Focuses On Income [View article]
    Perhaps we're talking apple and oranges, but I don't see how it is possible to net 25% ROI per trade by selling puts. Can you give an example?
    May 28 02:50 AM | Likes Like |Link to Comment
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140 Comments
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