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It was volatile as shit though, there were a couple -70% yearly returns (in USD) along with years of returns of +120%, +150% and +288% (all USD). But that's exactly why one should not be afraid of the market now. That volatility suggest stocks were fluctuating from undervalued to overvalued. So...

I started at the 1980 because its known as the lost decade

I stopped at 1992 to negate the effect of the optimism that started in 93/94 when people started to see that hyperinflation was going to end. From 92 to 93, stocks doubled in USD terms. So I'm being conservative

Here is another fun fact, from 1980 to 1992 Brazil had its worst fiscal crisis ever, it was so bad they had to print money. There were 5 currencies during this period (they all went to zero or close to it). It also had 3 sovereign debt crisis. Yet stocks averaged a return of 12.3% a year in USD...

OP, Sosnoff says options traders have to have a lot of small bets across multiple markets, much in the way a casino prefers lots of small bets rather than to have Bill Gates walk in and bet millions on roulette. Why do you feel you can ignore his advice? He publicly vouched for a trader that...

What the example is not taking into account is that its not about analyzing that pain in an absolute basis but RELATIVE to the pain of a similar situation. Its about going from $100 to $120 with large positive carry, compared to going from $100 to $120 with a small positive carry or a negative...

Here is my point, behavioral finance these days teaches corporations, goverments and people all kinds of tricks that can help people make the right decision where they ordinarily dont. Some of them are related to saving and investing. What I'm saying is that covered call writing on dividend...

Well, looke what I suggested in my OP "specially as that person accumulates dividends and premiums over time, it gives them the sense that the stock is a "cash cow" and its not a big deal to see a temporary drop." Do you want me to say that again? "as that person accumulates dividends and...

And 2008-2009 was as far from a quiet mkt as it gets. The extra income from the 'no premium' calls (from the good div payer SPY), DID provide a downside cushion

lol, FAST PANIC? whats wrong with you man? I never used the word fast panic anywhere. I never mentioned anything about the speed in which the drop happened. Its hard to have a debate with you because you change your positioning and distort the other persons views

I'm using the buy write index as a proxy for covered call writing on div stocks because, according to your words "almost the entire S&P 500 pays divys now so basically you are still just long the s&p 500 at the end of the day. You might as well just buy the SPY ETF. You do know that it pays a...

Well, the math did speak for itself. You said div stocks ARE the SPY and that the SPY was a good example of a good div payer. And as I showed, a buy write strategy offered a fair amount of protection in the last big drop on SPY (which then you proceed to not address). And if these calls are so...

And yes, the buy write index lost to the index during the recovery, but if the investor panicked and sold, there is no recovery there. he will be in cash when the market pops huge

The buy write index was down 39% in 08-09, thats less than the 57% of the SPX(and you just said that SPY is a good div payer). That could be the difference between a huge mistake/panic sell and someone sticking with a strategy (unless you want to claim that additional losses produce no extra...

You pretty much ignored the crux of my argument, which is for a lot of people, the biggest cost of ALL is selling everytime there is a bear market. IF (and I dont claim this is the case for every one) selling calls on good dividend payers can help them whether the storm, then the strategy...

Overall, its a bullish position, just not as bullish as others

Lets someone is semi risk averse, what that means is that person cant just buy SPY and hold it forever, the person will panic during market drops. I believe that is the vast majority of investors out there, in fact, some studies show people make 2% a year against 8% of mutual funds due these...

http://tinyurl.com/zzm38sq New Drobny book coming next year. Although judging by the 2 first interviews (Bass and Chanos) it wont be a good line up. These two guys havent made any money in years all because they were too bearish But it should be worth it just for the Leitner and Drobny updates

This is also why they are/were an opportunity, in a inflationary economy, stocks rise. Its that simple. The fact that they were hold down for years (even in nominal terms) suggests they were getting cheaper. Its kinda like a volleyball being put underwater, when you let it go, it jumps to the upside

Here is a fun fact, if you ajust for the splits in the 80s and 90s Brazil's Bovepa index is up from 100 in 1968 to 640 million today (640,000,000.00) A nominal compounded return rate of 38.61% (~7.5% real) And there are people that doubt that stocks can protect you from inflation I'm even...