Hi John, silent lurkers, and fellow regulars!
I Want To Learn More
Jeepers! The flood of emails questions regarding the W.I.N. CCing Approach has kept me busy at nights. Put a name or acronym on a process and people will take a look at it! They don't want to take the time to read up and do their homework. Yet, it is REAL MONEY that they are putting on the line when they invest. I must honestly say that I can't recall a negative email that challenged or disputed the merits of W.I.N.. I don't know if I should be worry or glad of that fact. After all, if W.I.N. did not make sense or it did not work as discussed on this forum, would investors say so? I think they would!
The variations of applying W.I.N. is ever changing. Indeed, how many reader's comments have you noticed that added a twist to W.I.N. That's good and it proves that people are really thinking about what they are reading! The smart investor has a tool shed of option strategies to draw from!
What Do People About?
Before I forget! Doug Webb mentioned to me last week that his website at webbindustries.com has 600 registered individuals. That is an impressive number of people who took the time to register and use his goodies. Doug is one heck of a computer programmer. Now, back to my observations about the email questions.
What is really surprising is the interest in covered call writing by those who have never tried it before because they thought it was too risky or too hard to learn!
The other positive comments are by those who have experienced a negative covered call writing event(s) and got $$ burned because they flip flopped trading decisions and got whipsawed in the process. In short, they covered (as the stock gapped up) their CCs only to have the stock turn downward on them!
In reviewing their trades with the aid of bigcharts.com I found over, over, and over again the same mistakes repeated! That is, they all had no technical charting idea of what the stock was going to do price wise, they all used subjective feelings that the stock would gap to the moon, so they covered their CC positions only to eat a loss as the stock retreated below their net cost basis (nut). You have to admit that our regulars don't make those foolish mistakes once they apply the W.I.N. CCing approach.
Benefits of CCing using the W.I.N. Approach
Below you will find the links to recent SI discussion on W.I.N. and LEAPs which seems to really of interest to our forum members. Our forum has been evolving over the past year. W.I.N. does consider CCs as the bread and butter for investing. The major difference with our W.I.N. approach is the
1. use the BB and RSI the technical indicators to pinpoint stock price cycles (patterns that repeat).
2. improve your timing of when to write those CCs in order to benefit the most and not restrict the upside profit potential.
3. buying at specific times PUTs and CALLS as leverage tool (multiply upward profits) or as a hedging tool (downside insurance protection). We refer to it as our option sideshow because it is not a requirement, but, it makes a major difference in making profits regardless of the direction of the stock price. In short, we have eliminated the cons of plain traditional CCing while enhancing and teaching the intelligent use of options (PUTs and CALLs). After all, the majority of options expire worthless!
Learn By Doing, Perfect By Learning From Others!
Message 5450203
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LEAPS
Message 5368270
Message 5436351
Message 5436488
Message 5446196
Message 5425240
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