Comments on: Nearly “Riskless” Covered Call Strategy http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/ Thu, 09 Sep 2010 01:38:29 +0000 http://wordpress.org/?v=2.1 By: think http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/#comment-163 think Mon, 07 Jan 2008 15:13:31 +0000 http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/#comment-163 You will be bettr off saving commissions and capital by using a simple long call vertical which is synthetically same as your collar strtategy. See http://mediaserver.thinkorswim.com/transcripts/collars.pdf fro explanation. You will be bettr off saving commissions and capital by using a simple long call vertical which is synthetically same as your collar strtategy. See http://mediaserver.thinkorswim.com/transcripts/collars.pdf fro explanation.

]]> By: John Brasher http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/#comment-165 John Brasher Mon, 07 Jan 2008 17:44:38 +0000 http://www.callwriter.com/blog/2007/03/05/new-riskless-covered-call-strategy/#comment-165 I disagree with Preston. The purpose of SuperPut trades is to allow the generation of reliable income streams over time. It is not designed to be an in/out trade, though sometimes it can be closed quickly at a profit. The same and synthetically the same are two different things. For instance, covered calls and naked puts are synthetically the same if comparing their risk-reward graphs but very different strategies, and managed differently. For example, long stock does not expire. The SuperPut allows tremendous flexibility in managing the trade. A lot of options traders believe that anything stock can do, options can do better. That is sometimes right and sometimes wrong. Also, the Superput (calendar collar) allows the use of a very high level of portfolio margin if desired. I disagree with Preston. The purpose of SuperPut trades is to allow the generation of reliable income streams over time. It is not designed to be an in/out trade, though sometimes it can be closed quickly at a profit. The same and synthetically the same are two different things. For instance, covered calls and naked puts are synthetically the same if comparing their risk-reward graphs but very different strategies, and managed differently. For example, long stock does not expire. The SuperPut allows tremendous flexibility in managing the trade. A lot of options traders believe that anything stock can do, options can do better. That is sometimes right and sometimes wrong.

Also, the Superput (calendar collar) allows the use of a very high level of portfolio margin if desired.

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