Trend Following for the Long-Term

[AlbertDumb]

Hello. My name is Gilbert. I'd like to share with you my 15 years of trading results.


First off, I determined in the summer of 1998 that trading will involve compounding a market-beating return. Yes, I was aware that a single-digit percent of all fund managers actually DO this.


I began trading covered calls only during market uptrends. After all, compounding good monthly returns mathematically stack up to an excellent annual return.


Compounding these annual returns would be an awesome dream come true!

- more to come...

Gilbert J. Arevalo
Kingdom Capital
"...more than just a covered call company!"

[aojlhjpo09]

Compounding is great.

Isn't writing calls far better than buying them as far as time decay is concerned?

Doesn't time work directly against the buyer of calls?

Thanks for the info...compounding returns is the key to wealth.

[Anthonyfamy]

ShermanTanker said: ↑
Compounding is great.

Isn't writing calls far better than buying them as far as time decay is concerned?

Doesn't time work directly against the buyer of calls?

Thanks for the info...compounding returns is the key to wealth.
With covered calls, time decay works to the call option writer's benefit. Selling call option contracts against stock already owned generates a premium that seller keeps no matter what the stock price does. As time erodes toward expiration, more and more of the premium is realized creating wealth for the call writer.

On the other hand, the option buyer needs the stock to move in a certain direction within a certain amount of time. Time works against this and you are correct, the majority of option contracts expire worthless!

Gilbert J. Arevalo
Kingdom Capital
"...more than just a covered call company!"

[alutixusini]

If you like covered calls, in 2013 I started a Covered Call Fund that strictly trades ETF's. ETF's have more diversification than individual stocks. So far we've had some success in putting money to work.

With this high-growth CC strategy, strict stop-loss rules MUST be in place. Our position cost basis (stock purchase price minus option sell price) is our stop-loss target.

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You can find more at my Yahoo! Group.

Gilbert J. Arevalo
Kingdom Capital
"...more than just a covered call company!"

[admin]

After a long time