The S.F. Bay Area Option Group meets this Saturday at Fort Mason, 9 a.m. - I'll be giving a talk on Pt. & Fig. charts -formation and forecast; Andrew Watson will talk on the VIX.
Indicators of note last week were the AAII Bears, at a very high level of 57 (Bullish FOR the market); the BDI, or Baltic Dry Index and Bullish per cent are at very low levels, and $18B went IN to MMFs last week - going for that high, zero % yield.
Speaking of Zero [as in my book Zero (In)Tolerance] , those of you who follow the DITM, or deep-in-the-money covered calls strategy, the results are in for 6 months:
Although the positive .4% annualized return - thanks to a couple plungers of BP and UVV - was disappointing to date, it still outperformed the minus 7.6% of the S&P 500 by 8%. Hopefully the second half will raise the bar. This strategy, of selling call option BELOW the Buy price of dividend stocks, is a defensive plan, optimal in a sideways to down market, as well as a money market alternative for a portion of assets. More at www.brentleonard.com
Finally, I'm attaching to my email list a compilation of 2010 predictions for your viewing pleasure. Technicians Rule !
Last week numbers are posted -
With record numbers of dollars coming out of Money Market Funds, mostly into the crowded trade of short term bonds, anyone who has a minimal knowledge of covered call options and/or an interest in hedging stock market exposure might want to check out: brentleonard.com for an alternative strategy that is low-risk as well as highly rewarding. For those of you wanting more details and actual trading results, a new book is available for $14.95 at Amazon.com: Zero (IN)Tolerance
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