Kim Snider

WTF!

 

I didn't read a single word of that! I don't come to ET to read a novel, please spare us the agony!!! Don't become JACK #2!

 

when he shuts down, is he jack off?

 

High probability (low premium) OTM credit spreads will have multifold losses if you wait until the underlying is ATM (unlesss close to expiration)

 

Wow indeed. From that document:

"While the rules of the Snider Method prohibit selling stocks at a loss, this does not limit or prevent the accumulation of unrealized losses. Nor does it guarantee that a position will eventually close or that unrealized losses won’t persist indefinitely. We are more concerned with the ability to generate an income month after month, not with short-term account values. This can be one of the hardest things for a new Snider Method investor to embrace."

 

It was cut and pasted from an internet source, verbatim.

 

And then combine that with her application to patent her method, which is Covered Calls, the investor carries all the risk of a downward market, and severely caps gains with the covered calls. But her method is "Patent Pending" so it must be good.

 

my wow comment had to do with the fact that there is zero discussion of the methodology used, it will cost you a few grand to see the actual dart throwing, sigh!

 

Read the patent. Her method is covered calls. Patent Application

Small portion from the document:
"15. The method of claim 13, wherein the step of selling covered call options includes selling covered call options that expire in the next calendar month, and selling the covered call options at a strike price at or just above the market price of the stock, wherein the covered call options are sold as soon as possible after current-month options expire so as to maximize a time-premium component of the option premium. "


ET thread where I first originally found out about the patent application: http://www.elitetrader.com/vb/showthread.php?s=&threadid=63678