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Hello
I have been doing this for 7 month in a raw
and ALWAYS made money
Even in September expiration,,
the calls for October were selling at no bid ask 5 cents
the put was in the money by $7
the only loss was the difference between bid and ask on the deep in money
put
bid 6 3/8 ask 7 1/4
my net that month on 2000 shared was ONLY $ 3600
using this as a monthly return on a $70000 investment is a VERY handsome
return
Since I am always 2 month out on the call selling,, I am never been
called!!!
and on expiration if the call is more in price than what I paid for it,, I
do not buy it to close,,
so in 60 days I make 2500 instead of an aver of $4400,,
IT ALWAYS makes money
if market is up,, down,, or sideways,,
best regards
Ben
----- Original Message -----
From: "TheQuant" <thequant@xxxxxxxxx>
To: "profitok" <realtraders@xxxxxxxxxxxxxxx>
Sent: Sunday, February 17, 2002 9:04 PM
Subject: Re[2]: [RT] Where will qqq close fri
> Hello profitok,
>
> p> I will answer it the best I can As traders we all know that YOU do
> p> not anticipate but participate,,
>
> I don't know about that, at least I have seen one models published in
> real time on the Internet now for some time which certainly seems to
> anticipate price direction. As I try and understand it, I found it
> does so by using broad market sentiment. Very intriguing at least.
>
> p> However,, what to do with conservative money which one can NOT
> p> afford to loss ANY principle and still create income,,
>
> I belive that this is hanging out on a limb when you make this
> statement because while the calls profits maybe a given there are
> other considerations. Example, loosing the money on the stocks will
> usually exceed the profits gained by the call premium. So in effect
> you have lost principle, not to mention! IF the stock is trading 15
> and you purchased it at 14 so you sell the 18 call and then the stock
> moves to and closes above 22 at expiration. Some like myself would
> consider that a loss, a loss of income. Selling calls is not as
> conservative as you my think or portray. You certainly CAN loose.
>
> p> Selling covered calls is PARTLY the answer,, because it does create
> p> 5-8% MONTHLY income,, but what is the qqq goes down MORE than the
> p> premium collected? now you are losing principle!!
>
> Agreed, but
>
> p> the answer is buy a put,, so in Feb. I bought tons of qqq at 38
> p> sold the march 39 calls at 3.1 and bought the Feb. 37 put at .75 on
> p> theresdy close,, I replace the Feb. put with a march put and bought
> p> to close the march call about 10-15 minutes to the close on Fri.
> p> and sold the June call market on close this is why I needed that
> p> info!!
>
> Very honestly you are in a mess, you did all this why? You are looking
> for a way to trade the markets and not risk anything? If you trade
> the markets and you make any money I guarantee you that you risk
> something. In fact, I have found that even those great traders who
> show little drawdown and steady returns, risk tons each month. The
> way that the risk are officially reported make's their efforts seem
> easy however. Just like magazines and mentors make everything seem
> easy. When in fact those who take the risk make the money, and those
> who avoid the risk loose money. I didn't know they sold qqq's by the
> ton? How many are in a ton?
>
> p> now fully protected again,, and with nice income in my pocket to
> p> party,, my guess was 36.5 and I was not that far off (just from the
> p> pure open interest) nice weekend
>
> Interesting, because the scenario you paint sounds better that it
> looks. Remember cost of doing business, commissions and slippage. Not
> to mention the loss of potential income. That income which is cut off
> short by your scenario trade is needed to stay in business. Of course
> if I were a broker I would love you for all the trades you put on
> which could have been just as easily replaced by one actual position.
> Yes just go long or short with a willingness to reverse the trade at
> some percentage level.
>
> p> Ben
>
> --
> Best regards,
> TheQuant mailto:thequant@xxxxxxxxx
>
>
>
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>
>
>
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>
>
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