Close April 8, 2022
Enjoy!
The Captain
2 Likes
Thank you sir
Close April 22, 2022
Enjoy!
The Captain
1 Like
Close April 29, 2022
Enjoy!
The Captain
1 Like
I’m back to the boards after a hiatus.
What do these posts mean? Is there some invisible ink that I’m not seeing?
1 Like
Is there some invisible (L)ink that I’m not seeing?
YES!
Last year I started a failed experiment, The Captain’s ARK
Some Fools like to look at the latest data.
Denny Schlesinger
a.k.a.
The Captain
a.k.a.
captainccs
2 Likes
Is there some invisible (L)ink that I’m not seeing?
YES!
Last year I started a failed experiment, The Captain’s ARK
Thanks!
Last year I started a failed experiment, The Captain’s ARK
What’s your plan, man? 
I saw you mentioned selling covered calls on arkk - 6% returns a week, whoa…
I see amazing returns on ITM calls - even bmy gives 2% a week
Before I pull out my covered calls text, how are you planning to manage this? If calls are itm at close, let them get assigned, then repurchase stock, sell more covered calls?
This seems fun…
I’ve stayed mostly out of trouble these amazing market times by selling calls - mostly cash-secured puts, some covered calls on commodities.
This seems as good a time as any to move from cash-secured puts (aiming for 10-25% returns pa) to buying stock and selling itm calls… thinks hard
Before I pull out my covered calls text, how are you planning to manage this? If calls are itm at close, let them get assigned, then repurchase stock, sell more covered calls?
This seems fun…
The only part that is totally planned is splitting the portfolio into long term hold and income. I don’t sell calls on the long term portion, too much opportunity loss. Currently the split is around 80/20.
Managing the calls is a bit ad-hoc. I sell the calls near the money. In the ideal situation the price would not move and I would just keep on selling calls but ideal seldom happens. Letting the call be assigned is a good outcome, it generated the expected income. Falling prices are the problem. If they fall slowly you can just keep on selling calls. If they fall steeply you have a loss. You either take loss if you don’t like the stock long term or you hold and wait for it to go up. Waiting is an option!
On ARKK, the May 20 calls are on track to yield 4.7% to 6%. The earlier ARKK purchases are down 28.5% vs. the ETF being down 36.5% (a non-realized loss).
Bear markets are not good for selling options. During the bull run I traded a lot of calls. During the bear I trade very little. Probably should do even less! But the really important thing is not to panic at the bottom.
Denny Schlesinger
3 Likes
Bear markets are not good for selling options.
Thanks Denny
Bear markets, what are they good for?
I guess the answer is, sitting on cash and trying to pick the bottom? Going short sometimes?
Me personally: Once s&p hits 4300 I might short again, maybe (via QID). I’m selling puts on pwv, arkk, maybe some bmy (mix of growth and defensive), the puts I’m getting a bit more aggressive with, aiming for 25-50% pa returns, happy to get assigned and move to selling calls on these. I’m also in commodities but looking to get out other than weat, I’m just not experienced enough to trade oil, and I always pick the worst gold etf!
Synthetic dividends via options: if your arkk calls get you 3% per week but the underlying drops 50% from here, you’re still up cash on cash (doing math on the basis that you theoretically bought the underlying today), plus if you’ve got faith in the underlying going up ultimately, you’re not looking to sell, you’re just taking the cash from the “synthetic dividend” and spending/reinvesting that, it doesn’t really “matter” what the portfolio value is.
With options, theory is one thing, but managing the trade in real time is different. I’ll have to re-read how Ellman recommends managing itm calls, I believe he recommends rolling but with the volatility in today’s market, getting assigned and repurchasing/selling might be worth it.
With options, theory is one thing, but managing the trade in real time is different.
That’s what American Philosopher Yogi Berra says!
Denny Schlesinger
1 Like
Bear markets are not good for selling options.
Thanks Denny
Probably should be modified to say not sell options as much as not sell Calls…
Bear markets, what are they good for?
Likely selling Puts.
But like Denny… I don’t really like to sell puts as much as sell calls… so I am not selling options at the moment.
Maybe buying Calls or LEAPS is not a bad strategy