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In a message dated 98-10-27 17:23:04 EST, you write:
<< Ben,
I can see how adding to a long-term
portfolio with a strategy like this would
be reasonable.
Uh. but in this case, how come you aren't just
writing options against your underlying? Why
the additional hedge?
Also, I would have to argue that what you are now
referring to is *investing*, not trading. In this
vein, again, would it not be more profitable to
use your long term equity in stocks as collateral
against more profitable and safer additions to
your investment plan? Hmmmm, by chance, your
broker isn't the one who suggested this strategy
is he? <g>
(Shrugging Shoulders) To each his own. Say, I just happened to
think of a book you might enjoy reading, since the strategies
are similar to some of your philosophies:
"Winning in the Options Market" By Allan S. Lyons.
This book is specifically for stock options traders. It is
superbly written and has many strategies of interest to
anyone who trades options.
Warm Regards,
Walt >>
hi
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
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