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Again, pick companies that will not be obsolete within the time frame you pick. You mentioned only financials that were potentially levered up 30-1. Would WMT, PG, KO suffer anything close to that? They have absolute fundamental value that banks do not (other than the banks cash on hand which...

The strategy i outline is best suited for portfolios of $200,000 plus, otherwise since i'm aiming for 10% per year that return with smaller amounts is a waste of time for most people. If you can pick good stocks that could rebound from falls maybe call spreads would work for smaller amounts...

Others have debated this. I prefer selling naked puts generally because I would not mind owning the company stock at the strike i sold. Most people would counter sure sure, but would you like PG at $45 when you sold the put at $55? Answer is still yes stock would have gone from $75 to $45 and...

Out of a universe of maybe 50 quality companies you have a potential opportunity every three months for just a few of them to have a poor quarter creating a sell-off, then you can sell otm puts. The thing is the people buying the puts could be making more money than put sellers. They buy the...

right now is not an ideal time to implement a put selling strategy since volatility is so low. wait for a more ideal time, debt ceiling, etc... at low-moderate leverage you should expect around 10% per year with this strategy. if you leverage up more but that increases cat loss risk. in...

Yes mostly spy, again, a downdraft in spy would make a good time to sell far otm puts, they seem perpetually overpriced. I mean if you look at some of the strikes on spy put leaps (out as far as dec 2015) and the fact they have bids at spy 100, what is someone hedging with that? the purchaser...

This is honestly my favorite strategy. I short otm puts on decent companies, KO, WMT, COH, TIF, PEP, PG. Its absolutely true that 90% of the time you win. The 10% can hurt bad. I know people say what about when you lose? You own KO, WMT, COH, TIF, PEP, PG they all pay above market...

How many years have your traded like this? The only problem i see is that you have to pay yourself a 'reasonable salary' which is subject to SE taxes unless i am mistaken and you can pay 100% distributions not subject to SE taxes. Otherwise sounds nice. I'll ask a CPA. thanks.

selling premium (usually shorting otm puts) when it feels so wrong is in hindsight the most profitable activity i've done. i.e. sell otm puts on good quality companies mcd, pg, coh, tif, ko if they miss earnings and/or into a constantly declining market (aug 2011). i sold otm leap puts as...

you can roll down and out for a debit (loss) you don't have to double up this isn't pg or mcd in which case i would double up. unless op thinks its headed to zero like ackman what is the harm in rolling? i'm just illustrating an option he may not have considered besides closing for loss...

roll out and down the premiums are juiced even down into low 20's or even teens they are high priced down there because people are pricing in zero price potential, vols are 70% plus down low. shorting the underlying carries more risk than closing the position at a loss right now imo. you pay...

you wouldn't really know until it happens, at 5% that means you should be able to go with it for on average 20 years before blowing up. problem is that could happen in year 1 or 20 according to the math. impossible to tell if 5% is real odds those are the deltas she's trading and that is the...

i'm just stating the facts. they are building a nationwide network. nobody can beat them at it, save wal-mart and target matching there prices point for point. i'm being sarcastic when i say they don't make money, they do, they just undercut almost everyone because they can. i use...

AMZN revenue was up 22% you must be referring to profit fell 45% year over year. earnings are irrevelevant to AMZN as they are a non-profit retailer that at any time they choose can become a very for profit retailer. i think it's too hard to make money off a generalization on such a short...

ok that logic seems to work on PG too but its taking off like a rocket. higher input costs, weak consumer situation, and they have premium priced stuff. nevertheless rocketman PG goes above $75 crazy this market is

you said short YHOO at $16ish and you stated you had shorted over $800k of it. It went to $18ish and you said but i was short a bunch of puts too so you made money on it. that was a little odd because you left out an important component that essentially made it significantly more balanced...

haj i thought you were short from $90 but let me guess you sold 1000x puts short too so you made $50,000 on the short MCD? at least pick a pos stock to short haj why MCD. foods not healthy but really hating on MCD? haj haj haj after your explanation on the short YHOO at $16 and how...

that's the way it works, i sell puts almost exclusively and win on over 90% of them and then the 10% go to work on my pnl. i was short -$600 worth of dotm (at the time) hlf puts which then were worth -$12,000 in less than 3 days (oh f*ck). closed 70% at breakeven in early jan as stock fully...

thanks for the input. the big thing for me was no se tax, but after review its seems neither investor, trader, or trader m2m are liable for se tax only the guys on floor of the exchanges pay it. i trade options frequently and was suprised when i sold to open bought to close and sold to...

From what i've researched its basically two main advantages according to accountant: Since all positions marked to market (priced to year end market prices) at year end, there are no wash sales to calculate or report to the IRS. If you happen to have a loss from trading greater than $3,000...