A High Growth Proposition?

paysense · Sep 16, 2009

FYI - the 10-year graphic above depicts what *can be* a result using these covered call methods.

Pretty awesome. Here is another newly established position:

Wednesday, September 16, 2009

2:17 pm EST

Bought 100 shares of MELI (Mercadolibre, Inc.) at $35.10 (ask).

Sold (1) MELI Oct 35 (QMBJG) call option contract at $2.25 (bid).

Stop Loss: $32.85

pay$

paysense · Sep 16, 2009

In the 2+ years since I have been at EliteTrader.com I have made many posts not only wrt my covered call strategy - but now managed ETF and futures systems with a lot higher CAGR (compound annual growth rate).

I will be compiling and re-pasting in this journal key posts in time whereby:

 â¢ I cashed out an early-2008 correction in stocks.
 â¢ I called a 2008 market bottom in stocks with my subsequent run-up using covered calls.
 â¢ I again safely exited the Bear Market drop later that year.
 â¢ I again called a 2009 market bottom in stocks with again a subsequent and current run-up in equity using covered calls.

This fully supports the annual returns and containment of losses as depicted in my long-term equity graphs.

Then we will move forward with how the use of ETF and futures using similar methods *works* to support the incredible type of return described earlier.

I got like 64,000 views to my Managing Funds for a Living thread. . .so I might create a Twitter account if those are interested in following me.

Still waiting for ET posters to describe how a 75% CAGR grows in 3-5 years!p$

paysense · Sep 16, 2009

Another *freebie* just for the fun of it.

Wednesday, September 16, 2009

3:07 pm EST

Bought 100 shares of CFSG (China Fire & Security Group, Inc.) at $17.95 (ask).

Sold (1) CFSG Oct 17.5 (QWUJW) call option contract at $1.30 (bid).

Stop Loss: $16.65

paysense · Sep 17, 2009

We had a nice NYSE "confirm" yesterday.

This position will perhaps allow for some nice appreciation in the stock price:

Thursday, September 17, 2009

10:39 am EST

Bought 100 shares of TSRA (Tessera Technologies, Inc.) at $28.09 (ask).

Sold (1) TSRA Oct 30 (TJQJF) call option contract at $0.90 (bid).

Stop Loss: $27.19

paysense · Sep 17, 2009

Hey, BTW those stocks went up nicely. . .already. See CSFG and MELI.

Also the new one (TSRA), too.

So does anyone here know that this is of little importance if you still can't contain losers and perpetuate a system for more than a couple of years?

You might throw 5-25k at a "system" that you *hope* does well for a 6-12 month period (very difficult to do),

- but why would you ever try to parlay that into a larger sum? Because scant few can lend any credence into these short-term wonders.

Something to think about when we put SO much time into all of this. Trying for a long-term edge is A LOT more valuable. Once compounding takes effect a high CAGR during year 2 and 3 can grow equity into monstrous proportions.p$

paysense · Sep 21, 2009

Well it is not the BEST strategy I've developed. . .but it is a long-term (re: can conservatively compound year-after-year) approach that has generated 50% CAGR.

Just this last year shows it's merit -

So we'll share another covered call trade:

Monday, September 21, 2009

09:57 am EST

Bought 100 shares of HMIN (Home Inns & Hotels Management, Inc.) at $28.93 (ask).

Sold (1) HMIN Oct 15 (QHHJF) call option contract at $1.30 (bid).

Stop Loss: $27.63

. . .before I get into the meat of my system management - using futures.

p$

paysense · Sep 23, 2009

Some may require supporting *proof* that I in fact made the following calls and cashed out during that critical 21 day period last September (see above graphic). . .

September 4, 2008

September 25, 2008

- but that is how to avoid strongly adverse market periods.

The ensuing LONG call didn't in fact allow for us to become fully exposed as the "test" failed. We added a few positions that were stopped putting us back into our Stop Loss or "wait-and-see" mode.

Ultimately the test passed on 12-Mar-2009 and we've been rallying vehemently, since. Not for the faint of heart - but one of the very best approaches to growing your funds I've seen!

, stay-tuned. . .as I've perfected a strategy that makes gains with downtrends and uptrends. I read somehwhere the other day that consistently doing such is the easiest way to make large returns for your money.

pay$ense

paysense · Nov 30, 2009

September 29, 2008

October 16, 2009

Of course I can provide snapshots that include time stamps, but you'd have to PM me - since these have linking info to other sites not sanctioned by ET to include here.