Look if you want protection of your capital, need to look at the married put as the best option or not get in at all, unless your a risk taker..own the stock, insure with the put and then write call options. If you get called away, sell the balance of the put options,,,the farther out the better the remaining value...wish i had when the housing bubble popped
Thanks Golden Bear... are you a RadioActive Trader? That describes the selling calls side of RT pretty well. Of course, now we are using ten Income Methods and call-selling is only one "option".
I had thought that the critics were commenting that the "risk graphs" for the long call were the same(identical) as the married put as opposed to them actually being identical. For example, one owns stock and an ITM put and the other is a long call.
No, they're saying that a long call is "more efficient" than a married put because it requires less capital.
I'll go along with that... as you'll see in the next video, "What about the Martingale Effect" the long call in a "requires less capital" scenario is MUCH more efficient at losing you money. ;-)
Look if you want protection of your capital, need to look at the married put as the best option or not get in at all, unless your a risk taker..own the stock, insure with the put and then write call options. If you get called away, sell the balance of the put options,,,the farther out the better the remaining value...wish i had when the housing bubble popped
GoldenBear36 2 years ago 2
Thanks Golden Bear... are you a RadioActive Trader? That describes the selling calls side of RT pretty well. Of course, now we are using ten Income Methods and call-selling is only one "option".
Thanks for the post!
K
freedomschool 2 years ago
I had thought that the critics were commenting that the "risk graphs" for the long call were the same(identical) as the married put as opposed to them actually being identical. For example, one owns stock and an ITM put and the other is a long call.
drjsiegel 2 years ago 2
No, they're saying that a long call is "more efficient" than a married put because it requires less capital.
I'll go along with that... as you'll see in the next video, "What about the Martingale Effect" the long call in a "requires less capital" scenario is MUCH more efficient at losing you money. ;-)
freedomschool 2 years ago