edamo, I've been reading your posts since you started here earlier in the month. For the past year I've focused mainly on buying calls, mostly LEAPS and also some shorter term calls before earnings, mostly with Dell. I've done quite well (+325%, was +500% 2 weeks ago) but the recent events have made me think I'm more lucky than smart.
I've been intriqued by your posts about selling puts. (I've also followed Don Martini's posts as well.) Selling puts didn't seem as attractive to me, compared to my returns from buying calls, but they are looking better and better as the days go by. I'm also thinking they might be better if we are going to have a volatile, sideways market this year.
You mentioned a while back that you were getting consistent triple digit annual returns from selling puts. When I look at various opportunities for selling puts, I can see maybe 50-75% annual returns at the very best, if all went according to plan (not that I would complain too much).
Can you elaborate a bit on your strategies? For example, do you often wait for a major downturn before selling puts, or do you see opportunities every week? Do you sell mostly short term puts (eg, with less than 2 months til expiration), or mostly longer term puts/LEAPS? Mostly blue chip techs, or some of the better internet stocks? Do you sell mostly in-the-money or out-of-the-money puts? Simple put selling or spreads? What percentage of your trades are selling puts? Are you seriously getting triple digit returns?
Question, question, questions! Any insights would be appreciated!
--Bob |
