[RT] Re: Overnight disaster insurance?

["Michael Ferguson" <wl7bdn@xxxxxxxxxxxxx>]

Ben,

Thanks for posting this strategy. Is there a book that deals with this
subject? Thanks.

Michael


----- Original Message -----
From: <Proffittak@xxxxxxx>
To: <realtraders@xxxxxxxxxxxxxxx>
Cc: <realtraders@xxxxxxxxxxxxxxx>
Sent: Friday, January 28, 2000 14:22
Subject: [RT] Re: Overnight disaster insurance?


| In a message dated 1/28/00 12:49:26 PM Eastern Standard Time,
| nmas@xxxxxxxxxxxxx writes:
|
| << Ben
|  Can you please explain your strategy according to the previous SP
example?
|
|  Thanks >>
| At roll over time (DEC contract to the march contract)
| I bought 4 SP 4 ND 4 nyfe and 4 DJ
| at that time, The DEC      SP was at 1300 (aprox) I sold 24 1400 march
calls
| and bought 16 Jan 1275 puts,
| when SP reached 1350 I sold the Jan 1275 puts and bought the FEB1325
| puts.
| Also   bought   at a loss  the  march  1400 calls.   and replace them with
| march   1450  calls(24)
| As the price keep going up  (50 handles)   I keep adjusting my position,,
| the net result is that   you have always insurance  ,,  low DD   and
| you have staying power for  YEARS,,
| I was long all year  1996  1997  1998  1999 and  2000,,
| when  do i get out??
| when  SP future close under the 50, 55 exp. m/a I get out
| and stay long the puts and short calls,
| when the SP is back above both I re enter the long futures
| The net net in my pocket  is  75-80%   of profit made on the future only
| position!
| This  is the only way  to  trade peacefully,,  no stress  ,,  no worry of
| overnight exposure,,  and   yes a sacrifice  of   20-25% of profits
| p, s
| if  credit collected from selling calls is not  enough to pay for  puts  I
| just sell more calls  at  110  points above instead of  100 above,,
| hope this helps
| Ben
|
|
|