Covered Calls
- Thread starter Samson77
- Start date
Not me. I did have a look at the site and would be VERY careful.
Anyone claiming 50% annual returns doing nothing but covered calls sounds like a con. Layer onto this the lack of any physical address or bios and I've seen enough.
I wouldn't let them give me a cookie let alone give them my e-mail address or (perish the thought) money.
I would be wary of their own beliefs that the results are sustainable, assuming they are even legit.
If all you had was 20K and you could make 50% a year, what would you rather do? continue to do that indefinitely (do the math) or spend your time getting nickels and dimes from retailers for a system? If I am getting 50% annually from a system, the last thing I want to do is deal with a bunch of customers buying my system - when I could make a million from 20K in under 10 years.
I guess I am wary of almost anyone selling anything these days.
If all you had was 20K and you could make 50% a year, what would you rather do? continue to do that indefinitely (do the math) or spend your time getting nickels and dimes from retailers for a system? If I am getting 50% annually from a system, the last thing I want to do is deal with a bunch of customers buying my system - when I could make a million from 20K in under 10 years.
I guess I am wary of almost anyone selling anything these days.
Its possible that last year , writing CC on some options could have netted that or more , since the market went straight up for the most part, and slowly. Of course, a simple buy and hold would have made as much trading the same stocks. CC is the same as selling puts. Don't let them tell you differently , or try to baffle you with bs.
Don't be so down on this idea -- it's quite plausible and works very well in 'tempered' markets.
On average, if you are truly patient and follow a good system, you should net 50-100%/year doing a calendar spread on minimal effort (3-4 trades per month depending on the weekly action). Covered calls do well, too but spreads are a bit nicer because you juice your leverage by taking long calls vs. long stock.
So, why would someone bother running a business doing this? Because it takes minimal effort to juice their own return AND, the bad thing to spreads, the occasional massive drawdown. This helps them through the rough times.
I don't know this firm but it's a completely valid strategy.
On average, if you are truly patient and follow a good system, you should net 50-100%/year doing a calendar spread on minimal effort (3-4 trades per month depending on the weekly action). Covered calls do well, too but spreads are a bit nicer because you juice your leverage by taking long calls vs. long stock.
So, why would someone bother running a business doing this? Because it takes minimal effort to juice their own return AND, the bad thing to spreads, the occasional massive drawdown. This helps them through the rough times.
I don't know this firm but it's a completely valid strategy.
I'm not down on the idea. CC's and Calendars are great ways to make $$$. I'm down on paying upwards of $800 a year for something that anyone could learn from a $30 McMillan book.
I think the first good trading decision some people can make is to stop buying fish and learn to fish for themselves.
I think the first good trading decision some people can make is to stop buying fish and learn to fish for themselves.
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I am still trying to figure out why thier performance charts are such a selective time period;
& such a short time period??????????????????????????????
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Wonder why thier performance charts are so selective;
& why they arent longer?????????????????????/