It depends on the assets and the strategy but usually nothing lower than 6 months. I don't do short term options. And yes, if assigned - assuming no problems with the thesis, I will sell calls against the holding as when I buy options, the goal isn't to buy shares so I'll be ok being called out.
Could you explain the logic of waiting for pullbacks on stocks already breaking out? Why weren't you buying UPS and NVO at their lows with the SAME logic?
Pullbacks are the best entry point possible on a stock because they always happen, with more or less predictability and precision. I don't buy the lows because... How do you know it's the low? I know people buying Novo's low since $100.
Great reply, thank you and I can definitely respect that!
For my part, I always have levels for established, old stocks that if they never reach, I don't buy. I saw that UPS has historic support in the $85 - $100 range so waited for the lower end. I managed an $87 average but I also can't deny that luck always plays a role too ofc. That's why the highest hit rate for me has been on old, established companies and 10-15 yr charts.
If the company is fundamentally better today than historically at same prices, it gives me conviction and MoS
Everyone works a different way and there are tons of ways to make money! As long as it works for you, it's all good!
This just doesn't work for me. I think it's hard to make this work with concentrated portfolios, there are too many great companies at correct price at the same time. Hence my conditions bit more strict. Allows me to go big on less frequent opportunities!
Question about the option strat. How far out do you sell a put and buy the call? Also, if you are assigned, do you sell calls against the holdings?
It depends on the assets and the strategy but usually nothing lower than 6 months. I don't do short term options. And yes, if assigned - assuming no problems with the thesis, I will sell calls against the holding as when I buy options, the goal isn't to buy shares so I'll be ok being called out.
Could you explain the logic of waiting for pullbacks on stocks already breaking out? Why weren't you buying UPS and NVO at their lows with the SAME logic?
Pullbacks are the best entry point possible on a stock because they always happen, with more or less predictability and precision. I don't buy the lows because... How do you know it's the low? I know people buying Novo's low since $100.
Read the "Why I don't buy downtrend" part
https://www.wealthyreadings.com/p/my-investing-playbook
And read this to see that buying downtrend doesn't yield better entry point.
https://www.wealthyreadings.com/p/duolingo-is-the-next-netflix-and
Great reply, thank you and I can definitely respect that!
For my part, I always have levels for established, old stocks that if they never reach, I don't buy. I saw that UPS has historic support in the $85 - $100 range so waited for the lower end. I managed an $87 average but I also can't deny that luck always plays a role too ofc. That's why the highest hit rate for me has been on old, established companies and 10-15 yr charts.
If the company is fundamentally better today than historically at same prices, it gives me conviction and MoS
Everyone works a different way and there are tons of ways to make money! As long as it works for you, it's all good!
This just doesn't work for me. I think it's hard to make this work with concentrated portfolios, there are too many great companies at correct price at the same time. Hence my conditions bit more strict. Allows me to go big on less frequent opportunities!
Articulation on point as per usual!
really appreciate the comment! Thanks, more to come!