Managing Funds for a Living

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Just for your thoughts.

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Do you have experience placing trades like these, but 100 times in actual size?

i.e.

Friday, June 15, 2007
08:45 am PST

Bought 200 shares of IOC (Interoil Corporation) at $38.95 (ask).

Sold (2) IOC Jul 40 (IOCGH) call option contracts at $4.00 (bid).
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Friday, June 22, 2007
12:50 pm PST

Bought 200 shares of POZN (Pozen, Inc.) at $17.60 (ask).

Sold (2) POZN Jul 17.5 (QKZGW) call option contracts at $1.15 (bid).

Looking at recent volume figures, what difference (if any) would be the actual bid/ask prices executions?
 
CC fit a narrow range of market conditions. You're up 12% while cheerleading the ease of 50% returns. In a runaway bull you've earned 12%.

Your strategy is to sell the highest vols you can find on stocks <$40 with decent relative strength. It's suicide Gilbert... you have zero diversification and your betas have got to be 2.00 or worse. IOW, your vol is 2x the market and your returns aren't beating. You're out of the market when things go bad? Are you currently fully invested?

Selling bull-straddles would double your posted return. Purely hypothetical, as it would be akin to throwing gasoline on the fire.
 
Well perhaps I can get SOME kind of feedback to my only question?!?

Perhaps I do know a little about something - after all I am doing what no covered call outfit (go ahead, google all the companies) would ever dream of doing...manage a "LIVE" Covered Call Fund with ANY decent predictable results.

Results, mind you, that even the very best of funds don't seem to be able to present before you and me. Exactly how much AVERAGE annual percent return can be expected with what kind of risk?

Very simple...even a guru can understand the question. Oh and is "staying power" a factor - or like the rest...just flash-in-the-pans? Let's go out 5-10 yrs, folks (and in black and white).

Yes, I read the Jesse Livermore article in Wikpedia - and found A LOT lacking in his methodology...not the least being his final moments, lendsome...Sense?
 
No, you make no sense at all... you constantly refer to hypothetical results on 7-figures as if it's real dosh. There are literally HUNDREDS of public CC portfolios.

How do you explain your current under-performance, Mr. Guru?

FWIW, I am up 75% year-to-date with a 4% peak to trough DD on >$10mil. You can rest-assured your CC methodology had nothing to do with those returns. It's the only "public" money in which I have had a majority interest. I suppose I could backtest some hypothetical portfolio and post to a website, but that would be... disingenuous.

Your "guru" insinuations are tiresome... I'll be happy to bet pink slips on 2007 performance. I'll take your action limited to the size of your account.
 
Quote from paysense:

Anyone...(else)???


Re: Impact of 100 times shares traded to bid/ask.

thx G
More...

I take from your non-response that you're not interested in my offer? Seems like a quick and painless double for a guru like paysense.
 
Quote from atticus:

No, you make no sense at all... you constantly refer to hypothetical results on 7-figures as if it's real dosh. There are literally HUNDREDS of public CC portfolios.

How do you explain your current under-performance, Mr. Guru?

FWIW, I am up 75% year-to-date with a 4% peak to trough DD on >$10mil. You can rest-assured your CC methodology had nothing to do with those returns. It's the only "public" money in which I have had a majority interest. I suppose I could backtest some hypothetical portfolio and post to a website, but that would be... disingenuous.

Your "guru" insinuations are tiresome... I'll be happy to bet pink slips on 2007 performance. I'll take your action limited to the size of your account.
More...

How do you keep your drawdowns so low if I may ask?
 
Quote from kinggyppo:

How do you keep your drawdowns so low if I may ask?
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My hit rate has been high. An equal mix of vanilla and exotics in the vol book. The $gamma on the otc exotics is easily defined algebraically, which allows for predictable adjustments. Edge loss is quickly recovered due to the limited duration of the bet.

The vanilla positions [otc and listed] have performed better. I've limited the trading to natural/synthetic flies and calendars, which carry limited position dgamma [gamma var].

My bet variation is discretionary, and the performance has been the result of risking a little on the big winners.

Most of all I've been lucky.
 
Quote from atticus:

My hit rate has been high. An equal mix of vanilla and exotics in the vol book. The $gamma on the otc exotics is easily defined algebraically, which allows for predictable adjustments. Edge loss is quickly recovered due to the limited duration of the bet.

The vanilla positions [otc and listed] have performed better. I've limited the trading to natural/synthetic flies and calendars, which carry limited position dgamma [gamma var].

Most of all I've been lucky.
More...

well that's one hell of a return considering the drawdown. Sorry didn't mean to hijack the thread. Now back to our regularly scheduled program. :)
 
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