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Gold/Mining/Energy : Big Dog's Boom Boom Room

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To: Keith J who wrote (165987)	3/21/2012 5:27:02 PM
From: Robohogs	Read Replies (1) of 206181

Keith, My aim is for the option premium divided by capital required by my broker to achieve at least 10% per month if it were to expire worthless and with 10-30% cushion. This does not mean I would get 10% as I do not fully margin up and some stocks do not go as planned. In markets like today, I would like to get 6-9% fully realizing such aggressiveness would lead to a 10% type drawdown in worse markets. This guideline is why I do not sell CIE $25 puts in much volume as capital charge at Etrade for that stock, and for IOC, is quite high. I will also run the math on a spreadsheet I have developed for the whole portfolio when margining gets too tight so I have a blueprint to release funds. It doesn't mean I sell sub-10% positions as frequently I cannot find nearly enough things to sell. One letter writer I follow aims for 4-5% per month in 2-3 month positions using only 10-20% cushions. He will invest 80% of funds with the rest as a cushion. I almost never take his trades as I want my returns to help cover downside while trying to get to his return levels, but h has been running 90+% success months recently. If he would churn, he would do better as 60-80% of full money is often made at end of 1 month in his recent trades. But as we get more extended, I want bigger cushions. You can't count on stocks alays going up with IV going down to lead tothis quick decline curve. Jon

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