Managing Funds for a Living

[paysense]

You are right in that this is a valid discussion.

Can a portfolio with say 5 holdings in these type of issues be managed from $5M to $20M to $100M...

What is the limit to where trade size will impact price? I've given quite a bit of thought to this, but truly don't have all the answers.

Let's say positions trade $1M (min 500k) shares a day at $25

$5M account ($40k is ok) has $1M in each holding. (Please remember my previous post that ascertains that chart progression is very acceptable and same for 20k or 20M.)

That given, we'd have a 40k block trade for each of 5 positions. Perhaps of greater impact would be the 400 option contracts to sell for each position.

How much would 35.15 x 1.45 capture (3.7% return) be affected? As the 20M - 100M scale is ramped I would think breaking down these trades over a few days is entirely possible.

Also since I only use a limited amount of margin for say 2-3 months each year, I suppose some higher-liquid/lower return covered calls could be used but with a percent ramped into margin to keep up return-wise.

I have managed 20+ covered call positions at one time and much prefer to keep this quantity as low as possible. Investors may not like this...but I'm thinking 'who cares'. I would give them monthly reports that I knwo they'd feel are acceptable.

I just didn't design this approach to constantly watch 20+ positions all day every day - even for 20M! Thoughts? PaySense

 

[paysense]

100M would take some logistics, but then again - I'm dreaming, remember? jus' kidding.P

 

[paysense]

Quote from optioncoach: "...Baron..."

You are also wrong in that I do have a right to post - just leave out the URL's. Seems criminal to you for me to get so much viewing?

Hmmmm, I quess we are back to that unconstructive dialogue - it really is a pity. Just stay off the thread - that is one of your choices. I don't know about you but please, these instinctive responses are not helping.

If you choose to spend time posting youtube videos or alerting the spam police...I can certainly discuss investment ideas.

Especially since there are many upcoming available to compare and contrast these same results. GA

 

[paysense]

The recent (stock-releated) drawdown and subsequent pull back up...

And how it looks with a 'value' chart.

Not too bad considering I made a play with a small stake (extremely high premiums) in DNDN. Again, a biotech takes up a relatively minor stake of the portfolio, but are worth the rewards in most months.

Before this Jan-2004 presented the last somewhat large stock-related drawdown. Also note the move to cash until bottom of last summer and late-Feb market-related drawdown. Dare I say "This is routine, folks" without instigating a revolt?

Lastly note that during the past 52 weeks, I invested (strictly into covered calls) only about 75% of that time. We got 10k on 30k with this account or 50% this time. This varies as other times have more gains ie 2003 (120%) and others less 2002 (0%).

Keep in mind down periods account for just 20-25% (?) of the time. Also for the life of the market we've in general been in an uptrend (previous peaks keep being exceeded).

Oh and did I mention the outperformance ('beat the market') by about 30% in just 1 year!

Again...I am not deserving, but I am thankful. GA

 

[flipflopper]

Quote from paysense:

The recent (stock-releated) drawdown and subsequent pull back up...

And how it looks with a 'value' chart.

Not too bad considering I made a play with a small stake (extremely high premiums) in DNDN. Again, a biotech takes up a relatively minor stake of the portfolio, but are worth the rewards in most months.

Before this Jan-2004 presented the last somewhat large stock-related drawdown. Also note the move to cash until bottom of last summer and late-Feb market-related drawdown. Dare I say "This is routine, folks" without instigating a revolt?

Lastly note that during the past 52 weeks, I invested (strictly into covered calls) only about 75% of that time. We got 10k on 30k with this account or 50% this time. This varies as other times have more gains ie 2003 (120%) and others less 2002 (0%).

Keep in mind down periods account for just 20-25% (?) of the time. Also for the life of the market we've in general been in an uptrend (previous peaks keep being exceeded).

Oh and did I mention the outperformance ('beat the market') by about 30% in just 1 year!

Again...I am not deserving, but I am thankful. GA

Good job Gill

http://youtube.com/watch?v=EVNTplvHjR8

 

[Cache Landing]

Quote from paysense:

The recent (stock-releated) drawdown and subsequent pull back up...

And how it looks with a 'value' chart.

Before this Jan-2004 presented the last somewhat large stock-related drawdown. Also note the move to cash until bottom of last summer and late-Feb market-related drawdown. Dare I say "This is routine, folks" without instigating a revolt?

Lastly note that during the past 52 weeks, I invested (strictly into covered calls) only about 75% of that time. We got 10k on 30k with this account or 50% this time. This varies as other times have more gains ie 2003 (120%) and others less 2002 (0%).

Keep in mind down periods account for just 20-25% (?) of the time. Also for the life of the market we've in general been in an uptrend (previous peaks keep being exceeded).

This is my last post here as I find myself at a loss for words. I say this only for those whom might actually be intrigued by this guy. I would speak to the OP but he seems completely oblivious to the statements that I've made. If he isn't oblivious then he is deliberately trying to take money from people while fully recognizing the fact that he is still a novice trader.

If you study the posts he's made regarding charts and past performance you'll notice that the only time this guy is profitable is during the bullish markets. That is true of any portfolio made up of covered calls. CCs offer very limited protection during bear markets. It's very convenient that his charts show what kind of money was made from 98'-2000 (which flat-lines into 2001) and then he shows 03' to the present. The two biggest bull markets in history. He occasionally makes reference to the fact that he made no money during the down years.

As his supposed record shows, he made no money from Oct. 2000 to 2003. He again made no money May-Sept 06' or Feb-May 07'. Why? Because his amazing strategy is made up of covered calls. The absolute most basic and common of all strategies involving options. CCs do horribly during down periods. Any of his followers would be better off simply buying SPX and writing covered calls against it. They would have the same performance and get to keep that ridiculous subscription fee.

I realize the guy has gone through some tough times in life, but that doesn't mean he should be able to charge people money for worthless advice.

 

[mde2004]

Quote from paysense:

The recent (stock-releated) drawdown and subsequent pull back up...

And how it looks with a 'value' chart.

Not too bad considering I made a play with a small stake (extremely high premiums) in DNDN. Again, a biotech takes up a relatively minor stake of the portfolio, but are worth the rewards in most months.

Before this Jan-2004 presented the last somewhat large stock-related drawdown. Also note the move to cash until bottom of last summer and late-Feb market-related drawdown. Dare I say "This is routine, folks" without instigating a revolt? I am a gay 50 yr old lonely man.

Lastly note that during the past 52 weeks, I invested (strictly into covered calls) only about 75% of that time. We got 10k on 30k with this account or 50% this time. This varies as other times have more gains ie 2003 (120%) and others less 2002 (0%).

Keep in mind down periods account for just 20-25% (?) of the time. Also for the life of the market we've in general been in an uptrend (previous peaks keep being exceeded).

Oh and did I mention the outperformance ('beat the market') by about 30% in just 1 year! I am a pro.

Again...I am not deserving, but I am thankful.
Disclosure---My gains are all from paper trading. GA

Get over yourself and your paper trading strategy of covered call writing.

 

[flipflopper]

Quote from BJL:

Just look at this guy. Any trader with gut feel could smell this guy from a mile away.

Stinks of loser.

 

[flipflopper]

Quote from Cache Landing:

This is my last post here as I find myself at a loss for words. I say this only for those whom might actually be intrigued by this guy. I would speak to the OP but he seems completely oblivious to the statements that I've made. If he isn't oblivious then he is deliberately trying to take money from people while fully recognizing the fact that he is still a novice trader.

If you study the posts he's made regarding charts and past performance you'll notice that the only time this guy is profitable is during the bullish markets. That is true of any portfolio made up of covered calls. CCs offer very limited protection during bear markets. It's very convenient that his charts show what kind of money was made from 98'-2000 (which flat-lines into 2001) and then he shows 03' to the present. The two biggest bull markets in history. He occasionally makes reference to the fact that he made no money during the down years.

As his supposed record shows, he made no money from Oct. 2000 to 2003. He again made no money May-Sept 06' or Feb-May 07'. Why? Because his amazing strategy is made up of covered calls. The absolute most basic and common of all strategies involving options. CCs do horribly during down periods. Any of his followers would be better off simply buying SPX and writing covered calls against it. They would have the same performance and get to keep that ridiculous subscription fee.

I realize the guy has gone through some tough times in life, but that doesn't mean he should be able to charge people money for worthless advice.

Exactly. He is going after the most clueless and desperate of people. He figure if he gets 10 people to subscribe it would be more income then he's ever earned. Criminal scam artist scumbag.

 

[Bogan7]

Quote from acerbits:

To get any kind of institutional money, you need to have a very successful track record, and it should be near a decade.

A decade? People are getting cash with 2-3 yr records actually at the moment with so much cash flowing around it may even be easier.