I'm curious how many folk who follow this thread rely on serious market timing tools to make their decisions and, if so, what sorts of tools they use.
Ken's comment, earlier today, about writing ccs on upward price movements, led to me reconsider my sense for ccs. I had thought of them exclusively in terms of hedging portfolios on the downside. Despite my public experiments with NUFO buy/writes, my aim has been to use cc writing on stock I already own.
From that perspective, I saw my principle risk as losing out on some swift, unanticipated, and large upward price movement in one or more of my stocks. I thought market direction was something to think about but not essential. Consider me naive. Wouldn't be the first time.
But Ken's comment leads me to think that to do this well, that is take advantage of as much of it as possible, and perhaps to better lower my risks, I need to tie cc writing closely to market timing.
I raise all this because I've been dancing around the issue for some time. I've bought far too many trader books (Schwager, Zweig, etc.); subscribed to far too many charting services (Worden Bros. for one); and checked out far too many stock trading programs; all for my own good.
So, to repeat, I'm curious about your tool kits. Do you use market timing tools extensively when you write ccs?
John |
