[quote author="usctrojanman29" date=1236244680][quote author="BlackVault CM" date=1236243401][quote author="skek" date=1236242591]Where's the new blog site at, BV? My bank account misses your musings...</blockquote>
Just hire a manager that knows how to preserve capital. I hear BV Capital Management has some innovative investments just...for...YOU!
Site is not up yet. I'm not just making a financial blog site, blog will be just a small part of it. It will have educational lessons/strategies and other trading info. For example how and when to use covered calls, buy calls, buy puts, bull put spreads, calendar spreads bla bla bla.
It is mainly geard for the company I want to launch, but blogging will be part of it. I think I'm going to just hire someone and have it wrap it up in a week or so. I'm coming to a fast realization that I need to stick to trading equities and not screw around with web programing.</blockquote>
Yeah hurry up, I need some more investment ideas now that I'm busy working. haha I know you don't like this strategy, but I'm looking at different stocks that have big put premiums in the single digits to sell some uncovered puts next week (I've seem to make some decent returns on this risky strategy for the past 3-4 months). I've engaged legal counsel to go after my former employer for not paying me commissions on my closed loans so if I get some funds from that we'll have to talk about investment strategies on a regular basis. Hope you remember the little people when BV Capital Management is hiring and gets huge.
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I'm not a fan of selling uncovered positions, however I'm never going to say the strat doesn't work. I just don't like the associated risk that comes with it. If I sell calls without owning the stock, I'll often do spreds.
As a matter of a fact, I have a spread on CSCO I got in about a week ago. Bought 14 strike calls, and sold 15 strike calls. As long as the stock trades 14.48+, I will pocked the spread between the two. So really, all I'm trying to do is let time decay away the higher time premium on the 15 strike call.
<a href="http://4.bp.blogspot.com/_vklbObTSbIQ/Sa8troJ4L8I/AAAAAAAAAHA/bYUPJm5Rs7Q/s1600-h/csco+spread.jpg">Here is a snapshot of the position...</a>
To break it down further, the 14 strike was bought for 1.02 and the 15 strike was sold for .47. If the stock on expiration day is at 15 a share, then the .47 will evaporate from the 15 strike call I sold, and the value of the 14 strike will go down from 1.01 to 1.00 giving me a 1 cent loss, but a .47 gain on the 15 strike which equates to a .46 cent gain X 100 (10,000 shares) = 4.6K. So I'm limiting my upside gain, however I'm also cutting my potential losses in half. Normally thi s transaction alone would cost me 10K, but it's cushioned by the 4.6K credit by selling calls so it cost me only 5.4K. Also, I'm limiting my loss to 5.4K instead of 10K if I bought the 14's by themselves.