Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither PSW Investments, LLC d/b/a PhilStockWorld (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great.
This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
Contact us: support@philstockworld.com
© Copyright - PSW, LLC.
2024
July 8th, 2008 at 10:40 pm
mck- I agree, it IS the easy button. And I think you did just right, setting up neutral based on where things stand today. That’s what I would have done if I hadn’t opened the trades yesterday. You are correct about expiration. We will be looking at rolling our positions as it approaches, to avoid any possibility of getting called. Although if we get a rally the next couple days, those short puts will be dead as can be.
ruairi- I’m glad you set up the SPY trade in papermoney, I think it is very important to experience the trade adjustments before committing money to them. In terms of rolling the callers, you could certainly do so. The beauty of this strategy is that it fits within a work schedule, so if you happen to look and see that a position is out of line, you can take a moment to roll it and then forget about it until expiration day. The reason I didn’t roll the k1p position is that I’m going to let the July premium bleed of some more first. Once it gets down some more, I’ll do the roll. Also, that thing tlsvet posted earlier today seems like a good rule: when the average daily decay of the current month is less than that of the next month, roll.