Replies to post #34009 on A.I.M. Users Bulletin Board (AIMUSERS)

[OldAIMGuy]

Hi Clive, %shares, %SV and %PC, etc......................

That's an interesting observation. I use %PC for buy dollar amounts but use %shares for share count in selling. I guess this makes me AC/DC!!!

I'd have to think about why it is that I've been doing things this way, but that would require some asprin!!!

Over the years I've sold calls for 100 share lots in harmony with AIM's sell signals. It's usually helped to fatten the total return. Since I now use primarily ETFs, I've not made that attempt.

Best regards, Tom
PS: Speaking of AC/DC, in Vintage Racing I met Brian Johnson and his wife and found them both to be very pleasant people. They became members of our VIRUS racing team.

[Toofuzzy]

Hi Clive

>>>Next AIM sell price 105, current price below that, write (sell) 105 strike price PUT options and keep the premium no matter if the sell price is hit or not. <<<<<


I think you mean Next AIM "BUY" price 105, current price "ABOVE" that .......... no matter if the "BUY" price is hit or not. Unless you meant CALLS in which case it would have made sense.

YEAH i get confused with options sometimes also! >grin<

That is a good idea though. Sell puts at the price you want to buy. If it gets put to you fine and if not you keep the premium. Only problem is you can miss a bunch of trades and tie up the capital in cash just in case the stock is put to you. Meanwhile the stock can bounce up and down till the option expires. I sell puts and calls (not a lot) at least 6 months to a year out so I am not spending a fortune percentage wise in trading costs.

Regarding your initial point. No I never switched over to % PC for trade size from % Stock value. I never quite understood the difference or what the unintended consequences might be.

Toofuzzy