2Atticus With regards to an 'inferior strategy', I suppose beauty is in the eyes of the beholder. Perhaps other 'superior' hedge fund strategies have exhibited exemplary prowess. I can only speak to you regarding my findings of a well-contained potential.
10% YTD with a bullish strategy in a runaway bull market? On $20k!? "Inferior" to its synthetic counterpart. Regarding the chart -- best-case hypothetical results won't result in the opening of checkbooks. You're up 25% at a compounded annual run-rate; what happened to the (nearly) double implied by the chart? 2005 was a sh!tty year for the index-markets, and you can't do better than 25% compounded in a runaway bull-market? Since you're keen on avoiding the question [as well as Federal taxes] ... why not sell the 12.50 put instead of the covered call?
C'mon man. Go easy on the guy "Atticus". I could ask 100 ETers the difference between the two, and maybe 1 could tell me the difference without looking it up. Then out of all those who could tell the difference only a few could tell me why the naked put is preferred without looking it up. But I agree. Is this guy seriously trying to attract attention with a covered call strategy? WOW!!! There's something every novice investor doesn't already do, as pitched to them by every professional advisor.
Reading the Merck Manual doesn't make one qualified to perform cardiothoracic surgery. Opening an account shouldn't qualify one to run OPM. Cache -- would you feel comfortable handing cash to a guy who's pushing a strategy in which he can't derive the synthetic? It's been fun, but I have a plane to catch.
Not sure what you want to hear from me... Per JimmyJam: (see previous post on this thread) You are right in that the current market IS heady and frothy - yet still dictates that we are to stay the course (keep invested). (We let the market tell us where it is headed - and again gave the "Green Light" back on 21-Mar-2007): http://www.kingdomcapital.com/freenews/freenews2007/freenews052707.htm Also from my previous post: I fully intend to capitalize on a 'naked put strategy' on indexes to leverage cash during corrections and bear markets (once I do manage larger accounts). As far as a substitute for CC's - I admit I haven't looked into this enuf in order to ascertain that it is a more appealing approach to my desired, stated and met, goals. As far as taxes are concered - what I've learned is that one can only hope that he is paying taxes that are rightfully due and owed. Taking deductions from your business against W2 income is allowed (even as a loss) if there is a 'profit motive' and the expenses are 'necessary and reasonable' (which at the time I failed to prove). I was in the very early developmental phases of what I am doing, yet can now completely substantiate my tax claims - but why bother...the only reason that I took it all the way to the Tax Court is I was trying to learn how the system works - and now I know! In fact...once I get going, I fully DO NOT intend to pay hefty tax bills on my gains. I will need to learn more, but I think that is what offshore tax structuring is about. So if you are going to learn how to replicate these results, buddy boy, YOU are going to have to go the course with me. Imagine a 5M account amongst a few blessed individuals. Compounded growth after 5 years would not be deemed worthy to lop off for the IRS to do with as they please. I think I can find better uses (at least for my portion). But let's quit this blah-blah-blah. I know there are insighful posters in ET land. Where are you? Show me the money! Tell me about ANYONE who is stepping in the right direction with their financial exposure. Or let's just speak on the merits of what I am TRYING to do. Now (if I may) let me get back to my not insignificant subscribership-base that are expecting this week's fully-researched, highly-rated "Covered Call Candidates" update and Weekly Newsletter. Those bold enough can subscribe to the newsletter via my site (it's free) and get this week's top picks for free. Also keep in mind - if I wanted to ramp up my fund another 3-5% in the next couple of weeks, I do have the cash (and another ~5-10% the next month). But that is after all what I do best - manage the risk, which I may deem worthy to do! And now, more pictures to look at: Try and connect the dots... Do you really think that accurate moves in and out of the market off bottoms and tops can be profitable? - Say by selling naked puts and calls on indexes to generate ~25% per occurance! Or is this reasoning simply 'synthetic'? Perhaps better left to those that have had success in doing (market analysis) so. More food for thought... 'P'
So if you are going to learn how to replicate these results, buddy boy, YOU are going to have to go the course with me. I'm up 53% since Feb, 1 2007 on $10mil initial cap; audited. Bye now.
I don't need to tell you that this is a very respectable 4-month return. But why not state your 4-year return? I am the only dummy here? Capital has already and will align itself. I do have SOME pride in what I do and feel I have succeeded in hitting most of my targets - not the least important is preserving gains during the inevitable market downtrend (=$$$). There are few and far between that can say they do this with any degree of success and thus there go almost ALL funds!! Now I have to go bye for now - and the best to all ventures. Paysense
Apparently. The fund's inception date. I started the fund on February 1st with two partners, using JPM for prime brokerage. Peak to trough drawdown of 4% with a 6.40 Sharpe. I worked at a variety of funds prior to that date. How long will it take you to earn 53% on your 20-large?