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Sorry, I only read the first page and last page of this thread, so I apologize if this is redundant. TD/Ameritrade in the US touts their fraud protection. If you can prove that you didn't give away your password and took reasonable precautions they say they will cover your account for fraud...

I don't think Lehman and McMillan have any new strategies. I think their "New Insight" is that you can keep writing CCs month after month instead of just a one shot deal. I am hoping to use NPs and CCs (if the puts get assigned) to generate steady somewhat predictable income.

BTW, I also got Lehman & McMillan's "New Insights on Covered Call Writing". Why didn't they write "New Insights on Naked Put Writing"? They only spend 2 pages on why NPs are equivalent.

Well, I agree they are nearly identical. Now how do we get the brokers to agree? Why don't they let you do NPs in an IRA?

No, I'm asking WHEN. THX MTE.

I'm not asking about the merits of NPs over CCs. I'm asking about when to open the position. I just read two books, and they give conflicting advice (imagine that).

I know, but what about timing the NP write? Plus, most brokers won't let you sell NPs in an IRA. Fidelity said they are starting to allow it, but my IRA was only apporved for CCs.

One book says do some TA and write CCs at resistance and NPs at support. Another book says look for stocks coming off their 52 week lows to write CCs. Doesn't say too much about NPs even though they are mentioned in the title. Maybe that proves it doesn't really matter when you write CCs...

The short leg will limit upside potential like the OP said he doesn't want to do. OP check out Lehman and McMillan "New Insight on Covered Call Writing". They cite a study which concludes that CC writing (BXM index) only lowered S&P return over 13.58 years from 14.07% to 13.88% with much less...

I just noticed that everything I look at seems to have a similar pattern. Is that unusual or a common occurrence when the indices take a hit like they have recently?

Every stock and index I've looked at today has the 10 day MA crossing below the 30 day EMA in the last week or two. Is that meaningful for the future, or is it just a reflection of recent market action?

I'm right on target then, especially after today. BTW, the trend will change often enough in this market that it won't matter what you buy or when.

How do I reset the cash on my live account? :confused:

I "started" with the TOS software (I made a few option trades in the past, but that was when you called your broker on the phone.) I didn't realize how good it is. I went to Fidelity to make a trade and it was the stone age. You had to enter the option symbol (I threw away my cheatsheet card...

It depends on the broker where they let you start. Schwab and Fidelity will start you at level 1, which is selling covered calls. I don't even know what level they put buying puts and calls at, maybe level 2. Fidelity has 5 levels and IIRC Schwab has 4. Some brokers like ThinkOrSwin.com let...

Steve, I agree with you. The point about Enron and covered calls is that brokers tell you that it is the safest and most conservative strategy. As you said, it's still slightly better than naked stocks. In fact I tried to argue this point with a Schwab rep to no avail. I told him they should...

I'm wary of BS's service. IIRC his promos only point to his big winners - "We made 5000% on XYZ" and "Made $50,000 in two days on ABC" that kind of stuff. No mention of an overall track record. Seems like a bunch of hype.

Random thoughts: 1. Only use money you can afford to lose. 2. Try to find a website where you can paper trade until you feel confident to trade real money (see #1). 3. Theory is fine, but the market finally determines the prices. 4. You can lose 100% of the money you spend on buying...

So is there NO advisory that anyone can recommend? I asked RedOption.com for their track record and frankly it wasn't that good. Most strategies either had "long term" (not that long, they've only been around a couple of years) gains but lost YTD, or vice-versa. Or they only had a small...

So you are "down" another $14/share. First of all "Don't panic." And don't try to make it all back at once. I'll probably get a lot of flack, but another book to consider, in addition to the ones already mentioned, is "Generate Thousands In Cash On Your Stocks Before Buying or Selling...