My OPTION TRADES..... part 2

Quote from taowave:

Putmaster,how long have you been trading?
Not for nothing,you real "risk" is if the stock should rally 2 weekly ATR's in your face.
Stop maximising the likelyhood of making money and put on positions tha make real money if you are right.
More...
When it comes to stocks, I have no idea what stocks will rise,... or when they will rise,... or how much they will rise,... or how fast they will rise,... or when they will stop rising,... or when they will reverse the rise and drop.

Trying to maximize POTENTIAL of a profit, instead of a PROBABILITY of a profit, is a fools game.
I'm very happy earning 13 - 16% returns on my trades, which have a very high probability of being successful.
And when the occasional stock is put to me, I tend to earn an even higher % return on the subsequent covered call.

BTW, the annualized % returns I earn are real.
Unless a spread trader uses all his funds for investing, his % returns are merely theoretical. And thus have no relation to how he will end the year.
Put another way,... if I hypothetically earn 15% annualized on all my trades, using all my funds, i will have earned 15% at year end.
Start with $100,000, and thus end the year at $115,000.
No margin used.
The only way a spread trader can earn a similar % return at year end, as he is earning on each trade, is to also use all his funds.
And that means he is using MAXIMUM MARGIN LEVERAGE.
Probably in the area of 10 times the value of his account,.... if not higher.
 
Quote from Put_Master:

When it comes to stocks, I have no idea what stocks will rise,... or when they will rise,... or how much they will rise,... or how fast they will rise,... or when they will stop rising,... or when they will reverse the rise and drop.

Trying to maximize POTENTIAL of a profit, instead of a PROBABILITY of a profit, is a fools game.
I'm very happy earning 13 - 16% returns on my trades, which have a very high probability of being successful.
And when the occasional stock is put to me, I tend to earn an even higher % return on the subsequent covered call.

BTW, the annualized % returns I earn are real.
Unless a spread trader uses all his funds for investing, his % returns are merely theoretical. And thus have no relation to how he will end the year.
Put another way,... if I hypothetically earn 15% annualized on all my trades, using all my funds, i will have earned 15% at year end.
Start with $100,000, and thus end the year at $115,000.
No margin used.
The only way a spread trader can earn a similar % return at year end, as he is earning on each trade, is to also use all his funds.
And that means he is using MAXIMUM MARGIN LEVERAGE.
Probably in the area of 10 times the value of his account,.... if not higher.
More...

yawn.gif
 
Quote from Put_Master:
08-29-12 04:19 PM

I don't invest just to place a trade and hope for the best.
More...

Quote from Put_Master:
08-30-12 01:12 PM

Insurance is never a bad idea.
I decided to spend time analyzing the stock as my form of insurance.
My main risk is, the earnings come out for LRCX on Oct 15, shortly before the trade expires. If they miss, the stock could drop.
Hopefully the L-T support at $30 will hold.
If not, the stock can drop to the $27 area, and i will earn a similar dollar and % return income,... selling a covered call at a 30 or 31 strike.
Thus, I have no issues with the stock dropping another 20 - 22% from it's current price.
If it does, I'll earn similar income on a Dec covered call.
Hopefully the VIX (IV) will be higher at that time,.... if the 20% drop occurs.
More...
 
What diaoptions doesn't understand is....
One can HOPE a stock drops for a higher credit.
One can HOPE tech support holds.
One can HOPE the VIX rises.
One can HOPE a stock for a good earnings report.
BUT...... HOPE is not a strategy.
 
<<< Trying to maximize POTENTIAL of a profit, instead of a PROBABILITY of a profit, is a fools game.
I'm very happy earning 13 - 16% returns on my trades, which have a very high probability of being successful.
And when the occasional stock is put to me, I tend to earn an even higher % return on the subsequent covered call. >>>


Regarding my current 13 - 16% annualized return goals:
That is based on current market conditions.
When the VIX was in the 20's or higher, my % returns on trades were higher.
When the VIX drops, so do my % returns.
I trade the market as it is.
Not the fantasy I wish it to be.
 
Quote from Put_Master:

<<< Trying to maximize POTENTIAL of a profit, instead of a PROBABILITY of a profit, is a fools game.
I'm very happy earning 13 - 16% returns on my trades, which have a very high probability of being successful.
And when the occasional stock is put to me, I tend to earn an even higher % return on the subsequent covered call. >>>


Regarding my current 13 - 16% annualized return goals:
That is based on current market conditions.
When the VIX was in the 20's or higher, my % returns on trades were higher.
When the VIX drops, so do my % returns.
I trade the market as it is.
Not the fantasy I wish it to be.
More...

yawn.gif
 
Oh boy...



Quote from Put_Master:


If not, the stock can drop to the $27 area, and i will earn a similar dollar and % return income,... selling a covered call at a 30 or 31 strike.
Thus, I have no issues with the stock dropping another 20 - 22% from it's current price.
More...
 
Sold puts on $9 MRVL for Nov.
Credit $0.30
Annualized % return..... 15%

http://finance.yahoo.com/q/bc?s=MRVL&t=5y&l=on&z=l&q=b&c=
Reasonable tech support in the $10 area, per the 5 year chart above.
Company fundamentals are a mixed blend of mostly positive, with a few just "so-so" metrics. But is financially healthy, and reasonably valued at my $9 price, with a BE of $8.70
Currently going through a few issues, but that is what creates buying opportunities for solid companies.
 
Quote from Put_Master:

Sold puts on $9 MRVL for Nov.
Credit $0.30
Annualized % return..... 15%

http://finance.yahoo.com/q/bc?s=MRVL&t=5y&l=on&z=l&q=b&c=
Reasonable tech support in the $10 area, per the 5 year chart above.
Company fundamentals are a mixed blend of positive and some just "so-so" metrics. But is financially healthy, and reasonably valued at my $9 price, with a BE of $8.70
Currently going through a few issues, but that is what creates buying opportunities for solid companies.
More...

Hopefully this one will work out for you.
 
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