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Strategies & Market Trends : cash flow investing for retirement
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To: onepath who wrote (64)10/27/2011 6:47:28 PM
From: tyc:>Read Replies (2) of 94
 
Idle thoughts !

Somebody followed me into LSG$2 calls today. Was it you ?

Another reason to keep the term short is "compounding". Look back at my posting. It says that the annualised yield would be 5274%... ridiculous of course... but that is if the 27% maximum profit is compounded every 23 days. I think if the interval is lengthened to every 30 days the annualised yield figure would be reduced to about 2000% !. a 20 bagger ?

Of course. there will be many months when the calls will not be exercised and the 27% maximum profit will not be achieved. But, as a speculation, I intend to start the ensuing month with a Present Value as if it were achieved. We shall see what's possible, and have some speculative fun while it lasts..

Ridiculous.. but it illustrates that an UP market that sees positions exercised is not to be feared.
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