Managing Funds for a Living
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A lot of patient posters tried to explain the equivalence of naked short puts to what he is doing with covered call writing earlier in this thread (Starting around here http://www.elitetrader.com/vb/showthread.php?s=&threadid=94764&perpage=40&pagenumber=5) but apparently he doesn't get it or doesn't care.
Of course since his "fund" doesn't bother to factor in commissions it doesn't really matter that he is doing twice as many transactions as is necessary.
I suspect he thinks his covered call approach is "safe" and being short naked puts sounds "risky" :eek:
I have developed my "expertise" in the use of covered calls to achieve hedge fund type returns - since 1998. I have never been licensed or certified in this industry and only recently delved into applying short puts that for my purposes do work better in some, but not all instances,
In other instances married puts and spreads work better than covered calls. I found (documented previously in this thread and with Xxxxxxx Capital Covered Call Fund at Collective2.com) a blend of this type of fund can achieve better a reward/risk - as well as lower commissions.
Since my Covered Call Fund training (web site) services are already established, I will leave as such and am now also focussing on my new futures-traded systems. In all better returns with less active management - which better suits my style.
Just pull up my old fund and you will see how the various trades were preferred over others. Definitely in many cases covered calls (for me) work best - aside from the added commission.
As far as GTS's interjection, he knows his statements are absolutely not true, since my answers and work regarding this very issue has been addressed and documented as he has closely followed in this very thread.
paysense
In other instances married puts and spreads work better than covered calls. I found (documented previously in this thread and with Xxxxxxx Capital Covered Call Fund at Collective2.com) a blend of this type of fund can achieve better a reward/risk - as well as lower commissions.
Since my Covered Call Fund training (web site) services are already established, I will leave as such and am now also focussing on my new futures-traded systems. In all better returns with less active management - which better suits my style.
Just pull up my old fund and you will see how the various trades were preferred over others. Definitely in many cases covered calls (for me) work best - aside from the added commission.
As far as GTS's interjection, he knows his statements are absolutely not true, since my answers and work regarding this very issue has been addressed and documented as he has closely followed in this very thread.
paysense
However, you fail to provide any proof that you have not spent your life paper trading and posting messages on message boards. Post your real account balance of your funds with your acct number blanked out including real money trades if you wish to prove me wrong. Or why not just change the thread name to trying to "learn how to trade while posting demo buys and sells". You have already broken several SEC laws like some other posters have pointed out by pretending to be a hedge fund manager. You have been warned. You could end up doing 5 years in jail.
Quote from paysense:
I have developed my "expertise" in the use of covered calls to achieve hedge fund type returns - since 1998. I have never been licensed or certified in this industry and only recently delved into applying short puts that for my purposes do work better in some, but not all instances,
In other instances married puts and spreads work better than covered calls. I found (documented previously in this thread and with Xxxxxxx Capital Covered Call Fund at Collective2.com) a blend of this type of fund can achieve better a reward/risk - as well as lower commissions.
Since my Covered Call Fund training (web site) services are already established, I will leave as such and am now also focussing on my new futures-traded systems. In all better returns with less active management - which better suits my style.
Just pull up my old fund and you will see how the various trades were preferred over others. Definitely in many cases covered calls (for me) work best - aside from the added commission.
As far as GTS's interjection, he knows his statements are absolutely not true, since my answers and work regarding this very issue has been addressed and documented as he has closely followed in this very thread.
paysense
Translation: I didn't even know those homes were there.
This is a lame attempt to change the subject while trying to sound knowledgeable about options which is pretty laughable considering the earlier option discussions in this thread that you failed to grasp.
Do us a favor, the next time you "execute" a trade please post the equivalent naked short put trade and when you close the covered call position also post where the put price is. Then we will see how buying the equity and writing the covered call is better then just selling the naked put.
Edit: Uh oh, market drop. Isn't it time for you to go from green-light mode to red-light mode or something like that and then claim that you perfectly timed the market direction change, a couple days after the fact?
<b>Wednesday, May 21, 2008
3:05 pm EST
Bought (1) OSTK Jun 22.5 (QKTFX) call option contract at $5.90 (ask).
Sold 100 shares of OSTK (Overstock.com, Inc.) at $27.90 (bid).
Sold 100 shares of XMSR (XM Satellite Radio Holdings Inc.) at $11.25 (bid).
Sold 100 shares of FEED (Agfeed Industries, Inc.) at $16.25 (bid).</b>
Taking some off the table and cutting some laggards.
pS
3:05 pm EST
Bought (1) OSTK Jun 22.5 (QKTFX) call option contract at $5.90 (ask).
Sold 100 shares of OSTK (Overstock.com, Inc.) at $27.90 (bid).
Sold 100 shares of XMSR (XM Satellite Radio Holdings Inc.) at $11.25 (bid).
Sold 100 shares of FEED (Agfeed Industries, Inc.) at $16.25 (bid).</b>
Taking some off the table and cutting some laggards.
pS
- how and why would I even care that you are who you say you are "oraclewizard"???
Why don't you put up some actual brokerage statements? Surely I would believe you then!
paysense
. . .as far as you are concerned GTS, I just stated that exact very thing. Pull up the trade history on KCCCF and see for yourself.
Yes, right now we are having a market second-guess itself. At this point, it does not warrant a call for a shift in market direction. I am reducing leverage with the pullback. Whether the market resumes its uptrend is not up to me.
The market does what it does and that is the way I like it.
p$
Meanwhile as I said earlier - there are no guarantees, so the ITM value to our covered call strategy feels like a nice 'n soft cushion - right about now!
Why don't you put up some actual brokerage statements? Surely I would believe you then!
paysense
. . .as far as you are concerned GTS, I just stated that exact very thing. Pull up the trade history on KCCCF and see for yourself.
Yes, right now we are having a market second-guess itself. At this point, it does not warrant a call for a shift in market direction. I am reducing leverage with the pullback. Whether the market resumes its uptrend is not up to me.
The market does what it does and that is the way I like it.
p$
Meanwhile as I said earlier - there are no guarantees, so the ITM value to our covered call strategy feels like a nice 'n soft cushion - right about now!
Well, it seems all is quiet on the ET front until the market turns topsy-turvy. In the spirit of being consistent (full disclosure) let's look at what is happening to my C2 systems.
The Nasdaq has made a sudden reversal these last 2.5 sessions to the tune of 4%. In these two systems I mostly hold EMD (S&P MidCap 400) and ER2 (Russell 2000) e-mini contracts.
With initial capital of 35k in KC "F" and 50k in KC "L" we've seen an excellent entry and progression (with 2-3 contracts) in concert with the market gains since the March 20 correction lows.
Then an increase in contracts to KC "L" - deemed our higher margin account - (with 3-5 contracts) gave us a nice 30k jump that was subsequently relinquished of late. I was forced to reduce leverage in KC "L", until the market proves otherwise.
It seems that the sudden "loss" of 30k or 30% DD is unacceptable, but with more risk will come more gains. Besides without the aforementioned scheduled increase in contracts the KC "L" chart may very well more emulate the KC "H" chart - some may deem more acceptable. But really it is just like starting a fund with 70k that with 3-5 contracts may begin in this very same manner. . .on its way to an even larger account value - all in its appointed time.
I am finding the key is that when I feel just as successful during these sharp declines as I feel during the steep inclines, my system strategy may be near fully-developed. Even still, I am looking to improve in any and all aspects that are possible.
paysense
The Nasdaq has made a sudden reversal these last 2.5 sessions to the tune of 4%. In these two systems I mostly hold EMD (S&P MidCap 400) and ER2 (Russell 2000) e-mini contracts.
With initial capital of 35k in KC "F" and 50k in KC "L" we've seen an excellent entry and progression (with 2-3 contracts) in concert with the market gains since the March 20 correction lows.
Then an increase in contracts to KC "L" - deemed our higher margin account - (with 3-5 contracts) gave us a nice 30k jump that was subsequently relinquished of late. I was forced to reduce leverage in KC "L", until the market proves otherwise.
It seems that the sudden "loss" of 30k or 30% DD is unacceptable, but with more risk will come more gains. Besides without the aforementioned scheduled increase in contracts the KC "L" chart may very well more emulate the KC "H" chart - some may deem more acceptable. But really it is just like starting a fund with 70k that with 3-5 contracts may begin in this very same manner. . .on its way to an even larger account value - all in its appointed time.
I am finding the key is that when I feel just as successful during these sharp declines as I feel during the steep inclines, my system strategy may be near fully-developed. Even still, I am looking to improve in any and all aspects that are possible.
paysense
Meanwhile, my covered call approach saw little movement in these issues.
Funny how the market is. Last year when my positions were moving to and through my stop-loss targets - forcing me to cash I harped how this (almost) always is indicative of the impending downturn or market correction.
Then perna-bulls/Fed "market makers" made me look like a liar as they would then recover. This happened with not one but three very short-lived corrections.
Well in the end my methods proved out and we are now experiencing well-deserved gains. But what is most unusual is the relative strength from these "high-beta" issues. A cursory look at my watchlists shows that the AAPL's and the RIMM's and the GOOG's and the FSLR's, etc. are what took it on the chin today.
That would move the market and is not unusual given that these previous market leading institutional favorite stocks are recovering from deep losses in their typical late-stage bull market fashion to regain prominence.
Perhaps that is why we are seeing the market jump lately. These bigcap tech favorites can't just go straight back up. There are probably many sellers that are just glad to be once again at breakeven.
If you are reading between the lines, what I am saying is that perhaps this rally is not over with, yet. That would be an immediate improvement for KC "L", since it may move up 100% from where it is at now.
paysense
My annual averages have come down some more - most of which is expected.
Funny how the market is. Last year when my positions were moving to and through my stop-loss targets - forcing me to cash I harped how this (almost) always is indicative of the impending downturn or market correction.
Then perna-bulls/Fed "market makers" made me look like a liar as they would then recover. This happened with not one but three very short-lived corrections.
Well in the end my methods proved out and we are now experiencing well-deserved gains. But what is most unusual is the relative strength from these "high-beta" issues. A cursory look at my watchlists shows that the AAPL's and the RIMM's and the GOOG's and the FSLR's, etc. are what took it on the chin today.
That would move the market and is not unusual given that these previous market leading institutional favorite stocks are recovering from deep losses in their typical late-stage bull market fashion to regain prominence.
Perhaps that is why we are seeing the market jump lately. These bigcap tech favorites can't just go straight back up. There are probably many sellers that are just glad to be once again at breakeven.
If you are reading between the lines, what I am saying is that perhaps this rally is not over with, yet. That would be an immediate improvement for KC "L", since it may move up 100% from where it is at now.
paysense
My annual averages have come down some more - most of which is expected.
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