jill re: "selling puts on an uptick"
normally wouldn't do it, but if the stock is in a momentum mode, and you understand the price action, it can be very profitable....i took more money off the table, every two weeks from august to december laddering qcom put sales, then
most qcom leap call buyers did.......
it takes a great deal of discipline and maturity to sell puts. you establish a goal, are satisfied with the cash flow, don't get concerned about what opportunity you may have lost, don't ever look back, close those that go against you, and ride the good ones to your set point.
this is not a chump change strategy as many think, 4-10% per month return on capacity within reason, double your money in less then a year to 18 months, a constant dynamic which works in up or down markets....
i started selling puts years ago......why? because all the "pros" who write the books, never concentrated much on the strategy.....very simple, nothing complex...and in reality an infinite return, as it is calculated against capacity, nothing ever out of your pocket, your cash still at work for you........like icing on the cake...
but as steve pointed out, it takes a bit of understanding one's own psyche........difference between the quarter slots and the baccarat table.... |
