k1 Project - Core Strategy II - The Premium Business
You rent space (or really time but then it’s all relative) - Phil
The LTP strategy is the core of Phil’s approach. Though the minute-to-minute action through comments might lead you to think otherwise, the central elements of the LTP strategy are fundamental to any understanding of Phil’s approach:
* selecting comparatively underpriced long calls
* carefully selling short calls against those long calls
* managing the position by retiring or rolling to maintain or enhance your advantage
If you’ve signed up with PSW to learn to produce the kinds of returns Phil advertises, consistently in up, down, or sideways markets, this is the strategy you’re here to learn.
The strategy is presented in three parts. This is part 2, The Premium Business:
* Central concepts
* The Premium Business
* Advanced Topics
The point of this subsection is to follow and elaborate on Phil’s comparison of the LTP strategy to the commercial real estate business. In essence, that you plan and manage the LTP strategy as a cash flow business, seeking an appropriate return for risk. Occasionally, Phil will twist it around and talk about running your premium-selling business as a casino. It’s great that the market provides a way for us little folks to become “the house” and have the odds stacked in our favor for once.
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