<<I'm just happy with the 12% return buying RMBS and selling RMBS Oct 90 calls last week. Kinda like a rebate. Let it roll -- da money's in da bank.>>
First - sorry about VIGN. I bailed on mine maybe a month or so ago. Got tired of the sideways movement and their niche just isnt getting it done right now. I think you are right, though. If it keeps dipping...maybe back to $25 level, I would be buying, not selling. Long term you will make money with VIGN. The lower it goes, the more you will make on the way back up.
RMBS - I hear ya on the 12%. My problem is I tend to be both very greedy and very risky, by nature. With RMBS, the last time I bought and wrote atm's, it was like, sure I did good, but the stock got called and was like $15 - $20 higher already. I decided with a stock like rmbs, which could make a really nice move between now and year end if things fall into place just right, so I wanted to be both slightly protected, but also have some room to play to the upside. Therefor, I wrote with strikes a little higher, so if need be, I can roll up and out a little easier. I also find, my greed really gets in my way. When I buy, with the intent to cover, whether it be atm or otm doesnt matter, but I should buy and cover right away. I have a tendancy to buy, and wait for a rise and then cover, so I get a little more for those otm CC's. Once, it worked- I bought at $80, it ran to $85 and then I covered with $90's. But most of the time it works the opposite. I buy at $90, next thing you know we are at $77 and I am kicking myslef for not covering when I bought.
anyway......lets see what the rest of the year brings. This is a tough time of year we are heading into. I am standing pat. Not selling, not buying. Hoping that we dont get much of a bloodbath, and hope in fact that we just go right to 5000.......
keith@hope.com |
