Hey just look at this. www.callpix.com. I have used this for searching for CC's, LEAP calendar Spreads and also Credit Spreads plays. Look at the few listed on the top with the highest bid/price%. Then do you homework and see what will work and what won't work. I picked up NFLD last month on the list as a High Bid/Price%, and found a profitable bull put spread out of it.... Friday at exp it will be a 11.5 percent return for the month.... My 2 cents...
You might want to re-read my original post. You are right, I don't know anything. I don't have 6mm plus trading averaging 50+per year in the sp and i didn't successfully trade through the bubble. shucks. btw, nobody here follows me. Thanks for the derogatory pm, at least there was a smiley attached. 'Should have taken the blue pill.
Yes, you are right, but selling puts aggressively is an invitation to disaster. The question is not if, but when. No free lunch (except the one I had at Applebees today thanks to a gift card). If one wants to sell 5 puts, then be prepared to buy 500 shares of that stock. Those who do not want to (be forced to) buy 500 shares shouldn't sell 5 puts in the first place.
great post optionscoach. I'm impressed I do see why you advocate to not sell the stock & go naked. It''s a completely different strategy; much diff risk as well. And, of course, as you said, I always put an SL to the upside. Making it a collar? Not a bad idea @ all. One more thing: one thing I like a lot is wiritng calls against LEAP positions. (leap calender spread) Basically same as covered calls, only w. LEAPs not common. If I'm gonna do this, the LEAP will always be ITM and the calls will probably be slightly OTM. I'll write calls over & over (if I can), adjusting as necessary, &, when the trade works out right, the LEAP becomes free. Just another thing to talk about Okay first of all, ROI means "return on investment." I'm talking about 10-15% on the position. Return. In a month. NOT on the whole dang port. I guess if you threw your entire account into a CC position, yes you could make 10-15% return on the portfolio, but of course that would be silly. I'm not trying to insult you here Arnie. I don't know why you find the urge to talk down to me. good post jllm. Nice site too.
Yes using the LEAPS is basically a diagonal spread. You can put the LEAP deep ITM to replicate stock ata lower cost or use only slightly ITM LEAPs for a ddiagonal bull call spread. You can sell calls across different expiration months as well. For example, buy JAN 08 $50 LEAP with stock at $65 and sell JAN07 $70 Calls, FEB $75 Calls and the next month in the cycle $80 Calls so you are spread out on strikes and time. You can play with it many ways in stead of straight vanilla position. For example if IVs are higher in later months and skewed, you can stretch the calls across the later months to sell.
Yes I generally look for LEAPs w. delta of 1 .00 or thereabouts to duplicate stock ownership...of course w. less equity tied up.