Archive for February, 2010

Aren’t Protective Puts / Married Puts EXPENSIVE?

Wednesday, February 24th, 2010

Ah, just reveling in the morning after the FORT - Foundations Of RadioActive Trading Seminar. Here’s a question that came up, and that merits a good answer:

“Aren’t protective puts EXPENSIVE?”

Well… yes and no. I mean, they do cost money. The question should be phrased more like this: “Are protective puts WORTH what they COST?”

Better question, I think. Because guess what - the benefits FAR outweigh the costs. Plus, the put option may actually become a source of income… (more…)

A Married Put Beats a Covered Call THREE Ways

Thursday, February 18th, 2010

That’s right… I’ll say it. Married puts are better than covered calls, as short- OR long-term trading strategy.

I WOULD say that no one else does… but a lot of folks have jumped on the bandwagon recently and are beginning to teach the benefits of married puts. Welcome to the club ;-)

SO! Ready to count ‘em off? Here goes: (more…)