Search results

To be clear to any novices who might read this. I do not prefer covered calls. I do not trade covered calls or any synthetic version of them. In fact, I trade futures because I do in fact have an edge there. But if you don't have a realistic trading edge, then this is the method that will...

C'mon now, if you criticize me for not reading for comprehension then you have to do likewise. On both points you ignored what I was advocating. To me, the covered call is for Joe Six Pack, who really doesn't have any stock picking skill. This is for a couple reasons. If he is good at...

:) The benefit of the discussion is that I believe we are speaking in plain enough terms that many of the novices stumbling through the boards will understand the various points, both good and bad.

That is where our disagreement is. I'm not saying you're inherently wrong, but I wouldn't recommend a CC strat on individual illiquid equities. They are better suited to SPY, QQQ, and other index trackers. They are for the guy who really has no skill in predicting direction so he really...

This is completely outside the realms of reality, even in the prop world, with their crazy way of calculating returns. I'm perfectly willing to accept the fact that there are a handful of traders who get 400%+ annual consistently over the course of 3-5 years. Even that is only 15% monthly...

Wow! 50% monthly?!? I'm not nearly as pessimistic as many on here, but that is really tough to do more than about once every year or two. That is over 12,000% compounded. If you do it more than two or three months in a row, then there is likely going to be a double helping of luck involved...

If you allow a 10% max DAILY drawdown, you had better have a really high sharpe ratio, or your account is gonna whip you all over the place.

Interestingly I don't think I'm all that patient face-to-face. Maybe the anonymity of the internet brings out the best in me.:D

Ok, I'll buy that. So now let's examine what would then be required. We must replicate the stock position by buying a call and selling a put. Now once we have the synthetic, we don't then have to sell the synthetic underlying to get the naked put, we simply need to offset the long call leg...

OK... let's make that assumption. Please explain exactly what it is about those exact quotes that I'm not understanding correctly. Please start with the idea you first proposed that in order to replicate a CC a person must first create a synthetic stock position.

Good job!

I most certainly did miss that qualifying aspect, and I suspected that was the case, which is precisely why I asked the question. A little lazy on my part. But it doesn't change the fact that the statements I highlighted are not really up for interpretation. They are completely wrong...

First off, if that statement is correct and can be used by all, then you are also by default a loser who loses because of his painfully poor grasp of the markets. But there is another type of person on a trading board. Someone who spends an absurd amount of time at his computer trading...

Your point was accepted regardless how many statements were made. I should just point out that you haven't yet responded to my post showing you where you've made incorrect statements. Perhaps the reason I didn't treat your prior posts with the attention they deserved was that you subsequent...

That is why you're intriguing to me. Your immediate assumption is that a complete stranger has some twisted incentive to act that way, with no prior history. I tend to assume that people are incentive based. If someone is coming off as a jerk, my first assumption is rarely that he is simply...

Or #4) Mistakenly missed the part of your post where you so thoroughly explained your example, and subsequently asked a question for clarity. Immediately afterward getting berated for trying to help, making you the jerk in the situation.

You completely missed the point of the post.. You said: "In order to create a similar position with options, you have to do a lot more than just sell a put. You first have to create synthetic stock when the strategy would just hold stock. " This is an incorrect statement. You don't have...

I'm intrigued by people like you. Did typing that comment make you feel powerful or superior in some way?

Oops... come back when you're ready then.:D