JC was a trader on the pacific exchange. He was also part of large betting operation. When the Exchange found out he and his partner decided to take it offshore.
Poncho- You are incorrect in calling the covered calls a bad strategy. Although the gains were not as great as those who bought stocks naked, the juice (premium, vig) levels were very high and writing the covered calls produced annual returns of approx. 10%, with far less risk.
The example quoted by the general is a poor one, both the stock and football. Both are dealing with very extreme instances, and only a fool buys far out of money puts with 3 month expiration at a point and a half.
The thought that part time players can beat the full time options writers at their own game is the ego driving force which gives them the houses in the Hamptons, and the players hanging around a gambling board looking for their next fix.
You cannot overcome the juice, write covered options or nothing. But if you must here is one little trick, don't buy/sell options in high volitility stocks, the juice will kill you, and the volitility will settle down before you can score. Buy/sell in low volitility stocks where caltylists may occur, earnings reports, economic news, sector movement, etc.. The juice will be low, and volitility will rise.
Poncho- You are incorrect in calling the covered calls a bad strategy. Although the gains were not as great as those who bought stocks naked, the juice (premium, vig) levels were very high and writing the covered calls produced annual returns of approx. 10%, with far less risk.
The example quoted by the general is a poor one, both the stock and football. Both are dealing with very extreme instances, and only a fool buys far out of money puts with 3 month expiration at a point and a half.
The thought that part time players can beat the full time options writers at their own game is the ego driving force which gives them the houses in the Hamptons, and the players hanging around a gambling board looking for their next fix.
You cannot overcome the juice, write covered options or nothing. But if you must here is one little trick, don't buy/sell options in high volitility stocks, the juice will kill you, and the volitility will settle down before you can score. Buy/sell in low volitility stocks where caltylists may occur, earnings reports, economic news, sector movement, etc.. The juice will be low, and volitility will rise.
