tag:blogger.com,1999:blog-5375291312433129989.post2221717322587487037..comments2023-06-03T05:06:58.216-04:00Comments on The Lazy Trader: Weekend Portfolio Analysis (March 30, 2014)Henrikhttp://www.blogger.com/profile/05792195649092816606noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5375291312433129989.post-63453625136507561492014-03-30T19:07:52.841-04:002014-03-30T19:07:52.841-04:00Yes. You are right. She does like to sell call opt...Yes. You are right. She does like to sell call options with 2 weeks to expiration. I have been thinking about giving my call spreads less time than my put spreads because markets tend to go up slowly and for a much longer time than we think. I am not comfortable selling a 56-day bear call spread even if we are in no man's land. It seems that SPX/RUT do have a tendency to gravitate higher during bull markets. I rather not stand in front of this train.<br /><br />I like that she sells more put options than call options. She also mentioned that selling call options is more challenging. In looking through all of Adam's historical trades since 2011, I have yet to see him sell any bear call spreads even though it would have enhanced his ROI. Since the shellacking that I took in 2012/2013, I am less enthusiastic about selling bear call spreads. Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-58890690306009557402014-03-30T17:01:21.979-04:002014-03-30T17:01:21.979-04:00It is true that entering new trades so late in the...It is true that entering new trades so late in the cycle is not the ideal situation. Because time decay has done a lot of its work, you cannot go as far out of the money as you can do with 40 or 50 days to expiration. But I don't want to miss good opportunities if they present themselves. Now that you mention Karen, you probably saw how she sells Call options two weeks before expiration. So much for gamma risk and delta exposure. But one thing is true, I need it to be a clearly extreme market and position my self in strikes where I am absolutely comfortable.<br /><br />Thanks for the comment.<br />LTThe Lazy Traderhttps://www.blogger.com/profile/08598866019359750526noreply@blogger.comtag:blogger.com,1999:blog-5375291312433129989.post-28764441744464469472014-03-30T11:17:44.001-04:002014-03-30T11:17:44.001-04:00I think it might be too late to enter an April pos...I think it might be too late to enter an April position. I don't like to sell options with less than a month to go since it will make me get closer to the the stock's price and the gamma risk can be huge if the stock goes against me during the last few days. I don't like to take my spreads to expiration anymore as I got burned a few times. <br /><br />I like how Karen does it. She sells 56 days out and tries to close it for 50% or better gain within 16 days of opening the position. If not, she will let it expire worthless. Jonathanhttps://www.blogger.com/profile/14635010979050643513noreply@blogger.com