Short-termSelling Puts (Covered Calls by another name) Message Board

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Strategies & Market Trends : Short-termSelling Puts (Covered Calls by another name)

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To: tuck who wrote (6)	2/4/2006 8:50:49 AM
From: Rocky9	Read Replies (1) of 66

"My time frames are shorter than Rocky's" I left out a word (I do that all the time and it drives me crazy). I use a 5-6 WEEK time-frame. I think that is where I get maximum volatility. If I could get ~5% a month, that would be around 50% after-tax annually. "shorter time frame probably demands more attention" In spades. That it is the downside - but lots more potential return. Plus, I have to have twice the capital committed for a week or two while I have two months in play. If we have a real bad market where most of one month's puts will be exercised, it will mean that I should write calls on the Monday or Tuesday after expiration, but at least only one months capital will be committed.

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