|
PureBytes Links
Trading Reference Links
|
-----Original Message-----
From: Sidney V. Gold <sgold@xxxxxxxxxxx>
To: Sigstroker@xxxxxxx <Sigstroker@xxxxxxx>
Date: Monday, February 08, 1999 7:21 AM
Subject: Re: returns on various options strategies
>when you sell the stock and buy back the call you do NOT get a double hit
>as you get back something when the stock goes down and time goes on!
>you should only sell calls on stocks you like!!
>and if you do that and age a medium stock picker you should do much better
>just buying stock
>and using a prudent stop and not selling calls to limit your profits!!!
>
>-----Original Message-----
>From: Sigstroker@xxxxxxx <Sigstroker@xxxxxxx>
>To: omega-list@xxxxxxxxxx <omega-list@xxxxxxxxxx>
>Date: Sunday, February 07, 1999 2:36 PM
>Subject: Re: returns on various options strategies
>
>
>>Maybe a better example would be one like NSCP. It's easy in hindsite to
>only
>>choose stocks that go up. What would the strategy be for one that goes
>down?
>>What do you do when the stock drops quickly but much of the time premium
>>remains? Take a double hit and buy the options back and sell the stock?
>>
>>In a message dated 2/6/99 4:44:39 PM Pacific Standard Time,
>gary@xxxxxxxxxxxx
>>writes:
>>
>>> If you have the data, it'd be interesting to try simulating a covered
>>> call strategy, on say, HWP (Hewlett Packard) going back to 1994/so. HP
>>> had a strong run up, and recently sold off dramatically, but snapped
>>> back over the past couple of months. Maybe AOL or CSCO would be better
>>> to prove your point about the effect of limiting upside. I think Yates
>>> sold options once a quarter, at the money. Simulating the sale evey
>>> month might be better for a sample of one stock because it will even
>>> out some of the lumpiness in the equity stream.
>>>
>>
>
|