Sep 12, 2016
Volatility Review: A look back at the week from a volatility perspective
Russell's Weekly Rundown:
Volatility Voicemail: Listener questions and comments
ETF stays same, roll short calls out.
ETF goes up a little, roll short calls up and out.
ETF goes up a lot, called away, re-establish covered call, roll leap up.
ETF goes down a little, roll short calls same or down strike assuming still above leap strike.
ETF goes down a lot, take profit on leap, re-establish lower strike leap, roll short call down but above leap strike
1-year later, roll Long leaps out one year if IV still low. Close positions if IV is high and wait for lower iv again.
I add to positions monthly by buying diagonals, long LEAP, short at the money call and either get assigned on short call, or roll short calls. If and when IV goes up my long puts make more or lose less, and I can sell more call premium which covers the entire price of my long puts after a few rolls. Sorry for long email. I hope you can discuss on the air. While I listen to almost all shows I occasionally miss due to work obligations. Can you alert me of when it airs if you discuss this? Thanks. Dr. Larry in NYC - PS: tell Sebastian he never returned my call.
Crystal Ball: Wild and reckless prognostication