Vol, two points...
First, I get my issues initially from the IBD rankings (EPS and RS). I'm a believer in O'Neil's CAN-SLIM approach. Once identified, I do some research to see if it's worth adding to my list... charts, BB, RSI, recent earnings, news, analysts views, etc. Keeping the list updated takes about 2 hours a week.
Second, glad you like my approach, but keep it in perspective. I have been using it for a year to support a goal of >40% annual returns, but I'm beginning to question myself. Let me explain....
In May, ANF was selling around 41 (margined cost if purchased: $2050.
I sold 3 ANF 40 JUN PUTs and netted $302.25 (302.25/6150)x 100 x 12 months = 59% Met my goal.
In June, sold 4 ANF 40 JUL PUTs and will close them tomorrow and will net about $400 for (400/8200) x 100 x 12 = 58% Met my goal.
I've achieved my target goal, and I should be happy. However, the stock is now selling for about 45.5. If I had simply bought (on margin) 400 shares at 41 and sold them tomorrow at 45.5, my gain would have been (4.5 x 400 shares)/ 8400 margin x 100 x 6 months = 128%.
Better yet, if I simply purchased CALLs.... aw, I can't even compute the gain.
The point is, each approach has its own set of strengths and weaknesses and there are certainly approaches that can make bigger returns.... and don't think I'm not looking seriously at some kind of a shift in strategy.
Good luck.
Tom |
