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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: horseshoe who wrote (11514)9/10/1999 8:37:00 PM
From: Tom K.  Read Replies (1) of 14162
 
Horseshoe,

You said...I was interested in your experience on making money with puts.

Realy quite simple...

1. Start with a realistic objective.... mine is to exceed 30% annual returns;

2. Establish a plan.... mine is to sell OTM PUTs 30-60 days out on only high quality issues.

3. Track your performance.

4. Know how to exit and repair.

4. Manage yourself.... be patient and wait for the opportunities; don't be greedy (high premiums are high risk); be willing and prepared to buy the stock if necessary.

I've obviously over simplified, but that's the heart of it.

Tom
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