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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Robohogs who wrote (165906)	3/21/2012 9:09:24 AM
From: Bearcatbob	Respond to of 206193

'How do others size the total value of puts sold or premium sold vs equity bases?" First, I will take no position in anything that is more than ~8% of my portfolio. limit. For BPS trades the risk is typically a much smaller percentage - 50 contract pairs at a $ is $5,000 risk. In an issue like DNR I will take up to a full position (~8%) in a short put position. Limiting my exposure to the yield of what we need monthly limits my exposure. I am looking to enter more OTM CC plays to get a bit more capital gain exposure. I would not mind being assigned SD for instance. Bob

To: Robohogs who wrote (165906)	3/21/2012 10:26:28 AM
From: katytrader	Read Replies (1) \| Respond to of 206193

Jon, I don't use those kinds of decision rules. It would take a double-major in finance and psychology to properly describe any "rule" that I may be using. About half of my assets in play are in IRA which requires a different treatment, per IRS. At the other end of the risk spectrum I have a brokerage account funded entirely with a heloc at 4.24% p.a. I'm not even sure of how to properly compute the ROE for that account (lol) I generally agree with where you array people on a risk continuum, but I consider many of your trades to be far riskier than those reported by Michael, which may be because I don't fully understand the greeks. katytrader