Monday, March 7, 2011


Although I believe in "laddering" positions monthly to not only receive continuous dividends but ameliorate risk as well ( having cash for buying opportunities), if one wants to fine-tune DITM, they could wait out corrections until a bottom seems to be in, to take new positions. That is what I am doing right now.

That way, stock prices are lower, dividend % are higher, and IV (implied volatility) of Calls sold is more. Conventional wisdom says that this is a minor correction, with a major one coming after the stimulus is over in June.

Right now the farthest I am out is July, hoping to get them called away early.

BTW - With the Wisconsin congressmen leaving the state to avoid a decision, is there some way we can get the Federal Congress to do the same?

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