Comments on: S&P 500, XLF, US Dollar, Inverse ETFs — Charts and Indicators http://phantasmix.com/sp-500-xlf-us-dollar-inverse-etfs-%e2%80%94-charts-and-indicators.html?utm_source=rss&utm_medium=rss&utm_campaign=sp-500-xlf-us-dollar-inverse-etfs-%25e2%2580%2594-charts-and-indicators Trading stocks and options -- contact @ phantasmix.com Fri, 27 Jan 2012 18:10:07 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Phantasmix http://phantasmix.com/sp-500-xlf-us-dollar-inverse-etfs-%e2%80%94-charts-and-indicators.html/comment-page-1#comment-3859 Phantasmix Fri, 10 Apr 2009 23:21:57 +0000 http://www.phantasmix.com/?p=2190#comment-3859 Great strategy but I'm not ready to buy-and-hold yet. Great strategy but I’m not ready to buy-and-hold yet.

]]> By: Comp!ete http://phantasmix.com/sp-500-xlf-us-dollar-inverse-etfs-%e2%80%94-charts-and-indicators.html/comment-page-1#comment-3858 Comp!ete Fri, 10 Apr 2009 14:24:26 +0000 http://www.phantasmix.com/?p=2190#comment-3858 Another caveat is that the investor will lose any upside potential beyond the strike + premium value. Picking the correct strikes is very important. One must be willing to accept that fact, and be disciplined enough to never cover a written option at a loss unless substantial decay has been realized and the investor is attempting to write another option further out in time. "Rolling". Patience is the key. Someone is paying you for your time, and be happy to take their money. Good luck Another caveat is that the investor will lose any upside potential beyond the strike + premium value. Picking the correct strikes is very important. One must be willing to accept that fact, and be disciplined enough to never cover a written option at a loss unless substantial decay has been realized and the investor is attempting to write another option further out in time. “Rolling”.

Patience is the key. Someone is paying you for your time, and be happy to take their money.

Good luck

]]> By: Comp!ete http://phantasmix.com/sp-500-xlf-us-dollar-inverse-etfs-%e2%80%94-charts-and-indicators.html/comment-page-1#comment-3857 Comp!ete Fri, 10 Apr 2009 14:11:05 +0000 http://www.phantasmix.com/?p=2190#comment-3857 By selling deep in the money calls, one can extract cash from a long position without having to trade the underlying equity. One can take advantage of extracting the time decay, and also have an effective hedge against a pullback. As with everything, timing is the key. If an investor can write the options near an overbought technical area, he/she can extract cash from the equity by covering the option during a technical correction. With some patience and discipline, the investor can repeat this process to generate cash multiple times. The caveat of this strategy is that the investor must be willing to lose the equity at the strikes they wrote, and at the same time generate a profit with this exercise. This works best with equities that have very liquid options. Good luck! By selling deep in the money calls, one can extract cash from a long position without having to trade the underlying equity. One can take advantage of extracting the time decay, and also have an effective hedge against a pullback. As with everything, timing is the key. If an investor can write the options near an overbought technical area, he/she can extract cash from the equity by covering the option during a technical correction. With some patience and discipline, the investor can repeat this process to generate cash multiple times. The caveat of this strategy is that the investor must be willing to lose the equity at the strikes they wrote, and at the same time generate a profit with this exercise. This works best with equities that have very liquid options.

Good luck!

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