NW-Bound
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- Joined
- Jul 3, 2008
- Messages
- 35,712
My two younger brothers are now doing options in the conservative manner I described to them. They are approaching retirement age, hence afraid of a market pull-back, and have raised their cash AA. However, they sell out-of-the-money puts using the cash as collateral, in order to make their cash generate some "dividends".
They do not share what percentage gains they made, only that they are happy with what they make.
As for me, I counted only 10 contracts expiring today worthless, plus 3 contracts ending up in-the-money, causing me to sell some shares. The number is a lot less than last Friday, because the market was down the entire last week and I did not sell many contracts. I could have sold put contracts, but did not because my stock AA was already high and I did not want to risk raising it.
Next Friday, I will have a lot more contracts expiring, the ones I sold this week. Probably more will end up in-the-money, and my stock AA will get reduced.
They do not share what percentage gains they made, only that they are happy with what they make.
As for me, I counted only 10 contracts expiring today worthless, plus 3 contracts ending up in-the-money, causing me to sell some shares. The number is a lot less than last Friday, because the market was down the entire last week and I did not sell many contracts. I could have sold put contracts, but did not because my stock AA was already high and I did not want to risk raising it.
Next Friday, I will have a lot more contracts expiring, the ones I sold this week. Probably more will end up in-the-money, and my stock AA will get reduced.
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