crashy writes bhp calls, page-41

re: crashy writes bhp calls Hi roamer

glad to hear of your success with wbc. we should have a chat. it is interesting to follow real buy-write trades, as I have done so much work with simulations and theory on the subject.

I have written many programs and excel sheets testing the buy-write. I admit, its nowhere near as good as the myth claims. My studies show the buy-write adds on average 5% to the performance of a share (allowing for possible cap growth), well below the 8% a month some spruikers have claimed. Still, when combined with a good div yield in a flat market, its a great result.

Now heres something you may not know. FPO's are the most innefficient instrument for a buy-write strategy. Instalment warrant buy-write for eg, will add about 12%. It gets better than this but I aint givin away all my secrets for free. Heres a clue though: learn how OCH calculates margin, and how to abuse it.

Think about LTCM. They were on the right track. Its not the rare big wins that make you rich.....its the plentiful low-risk, small wins that get you there......LTCM didnt allow for a volatile market in their simulations. I have.

aww geez im babbling again lol......