Replies to post #15396 on Advanced Micro Devices Inc (AMD)

[Elmer Phud]

HailMary -

So nice to see someone posting their thoughts on trading strategies. While we all may have our cheerleading views, making money actually was the original intention of this forum and Website. I like your opinions and hope you keep sharing them. Wouldn't it be something if we could talk about making money instead of just who has the best benchmark or who lied about what? Making money is something that everyone could finally agree on. We all want the same thing!

I hope you make a ton of $$$

[8-/]

HailMary,

I think I like your strategy. As a long term investment plan it has the flavor of cost averaging over time always below current market with monthly return. The problem I see is that a goodly part of your 'buys' which result from the put sales would inevitably be of stocks coming off their highs so selection of put sales would be important.

I don't know if it's still valid but there was a study illustrating that options at the minimal extremes of value were not priced high enough for their actual risk. That's what got me looking and finally buying them, but I've come to like buying only those with a lot of time left. 6 Months or more.

I'm going to have to think on this one but may start looking at selling put options on 52 week lows from IBD -- or something like that. Do you have any particular method you use to select the stocks you're putting?

8-/