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Gitanshu,
I guess we could stay with futures. My better half has asked me the same
question and she's the one who is conservative here. :)
Our futures accounts are large enough and growing fast enough on their own.
In addition, we have accounts where we can't trade futures.
Guy
Never be afraid to try something new. Remember, amateurs built the ark,
professionals built the Titanic.
-----Original Message-----
From: owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On
Behalf Of Gitanshu Buch
Sent: Thursday, August 10, 2000 11:58 AM
To: metastock@xxxxxxxxxxxxx
Subject: RE: What options to sell?
My answer: None.
Why: You give up opportunity cost that you don't need to give up.
I have a more fundamental issue with this strategy: Why sell options at all?
a/ If you sell ITM options, deltas decrease as price moves in your favor so
you get less bang for same risk.
b/ If you sell OTM options, same thing.
If your desired risk = futures position risk to start with, why not sell /
buy futures and keep 100 deltas in your favor all the time?
Now you may say, "I'll sell double when delta = 50" - well, you just doubled
the risk so you might as well double the futures position and make more
money...
Hence, opportunity cost.
Gitanshu
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