While I respect your personal opinion. If you could provide some sources to back your perspective, it'd be much more appreciated.
Poor Man's Covered Call vs traditional long stock portfolio
- Thread starter morganpbrown
- Start date
While I respect your personal opinion. If you could provide some sources to back your perspective, it'd be much more appreciated.
So no credible source? Thanks for your opinion, it makes a bit of sense intuitively though a lot of things in this game ends up being counterintuitive. I'll think about your ideas.
Historical data means little, and OK, no credible source. I just wanted to dig deeper into the how and why you could be right, and if I'm wrong that'd be great since it'd mean I've learned something today.
You want to limit the discussion to CC to prove a point that there is adequate empirical data from BW-funds. I get that you're more interested in proving a point than making money.
I have no problem posting a real-time model portfolio (real, confirmed trades) of SPY overwrites against the SPY for one year, but I'd like to wager on the outcome. I am paying 5x if I don't beat the TRS of the SPY over one year's time.
Rules inviolate: Buy 100 SPY and short 2 quarterly (HMUZ) calls against the positions. 20D strike modeled using BSM/binomial/whatever is agreed upon. Calls are rolled (at mkt) upon a strike-touch into the next quarterly series.
If you're so certain you're correct then you're a fool not to take me up on my public offer.
I have no problem posting a real-time model portfolio (real, confirmed trades) of SPY overwrites against the SPY for one year, but I'd like to wager on the outcome. I am paying 5x if I don't beat the TRS of the SPY over one year's time.
Rules inviolate: Buy 100 SPY and short 2 quarterly (HMUZ) calls against the positions. 20D strike modeled using BSM/binomial/whatever is agreed upon. Calls are rolled (at mkt) upon a strike-touch into the next quarterly series.
If you're so certain you're correct then you're a fool not to take me up on my public offer.
IIRC, the last person to take a bet against a long-term position call like this got wasted by Dest.
@Bastion_01 Try it in sim, see how it works out, before you make a real-money bet.
You rolling the calls down on a down move?
No. Only the cover on a strike touch/gap above (or) the upon expiration-roll into the next Q on LTD of the expiring Q-series.