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Ben Wrote:
>
> i gues one can always learn from others.
> joining this group alows me to give and RECIEVE good idea
> even at 50 one can learn new treaks
> as for the hedging.
> if i only sell calls ,they might take my stock away
> if the stock goes up, at least buying back the short call is ofset by 2
> positions (long call and short put)
> in addition. the premium collected (on avrage )is 400*12=4800
> 4800/3500 is over 100%per year
> the comm is aprox 20 per
> (use fidelity)on line
> warm regards
> Ben
Ben,
This is the best feature of open net trading forums. Keeps your
brain fresh. I often think of a new idea while monitoring the
conversations, or participating in a thread.I often see
something I never would have thought of, and it sets
my brain along different lines.
In your analysis above, are you also computing the amount of
money you are tying up in margin and risk? This has to be
calculated in before you can calc the true return per dollar
invested.
Of course, the bottom line is expanding equity! If it makes money
for you and you are comfortable with it, that is all that matters.
Regards,
Walt
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