MG, Re: Covered Thingies
As to covered calls, you might enjoy this sight:
coveredcalls.com
I've always thought that one could make a very nice living in covered calls/puts. I actually have tried to convince a couple of folks that, particularly in a retirement plan, it provides much greater potential return than any fixed income investments (maybe with the exception of ruble stuff). Unfortunately, I haven't got any takers yet that will allow me to go play. I just use the word options and their eyes glaze over.
Obviously we still got a DD issue and need to pick stocks that are generally progressing in a Northeasterly direction. I feel funny here, because you guys are the option gurus. I also stress that I personally wouldn't get involved until I see some market stability, and the president stops running around preaching that the sky is falling.
That said, I cannot think of a lower maintenance approach to generating really nice yields. Seems like it would only take one afternoon a month (the monday after the third friday). Keep in touch on the issue and let me know how you do. Seems do beat the pants off of 8% annual returns.
I have no desire to venture into keeping track of Y/DEM/$ or any permutations and combinations. The nice thing about buying one of the Big Boys is that they handle all the problems (hopefully) associated with currency risk and political risk. Lord knows, I have enough problems dealing simply with Market risk. That's why I like this covered option approach to generating nice fixed income returns. Obviously, if you still have DELL in a week, you can do it all over again. If they get it, you did really well, and can still go buy some more stock and do it again.
BTW took my loss on CSC. I do thank folks for the nice run today. It was only my lack of discipline that caused the loss and two weeks of opportunity costs. But, I was going to take the loss today in any case, and appreciate that the loss was less than I thought it was going to be (turned out to be about 10%). That was my first loss, after six nice trades in a row. So now we get to start a new record.
So, I'm out of the penalty box, a little more educated, hopefully a little more disciplined, and ready to rock and roll next week. But, no over night positions for me for the remainder of this month. I will go by the motto, that the near term rule will be: Do No Harm!
Berney |
