Comments on: Portfolio Overwriting: Should We Sell 1-Month or 2-Month Expirations? https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/ Learn how to invest by selling stock options. Mon, 30 May 2016 13:55:29 +0000 hourly 1 By: Alex Murphy https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-47248 Mon, 30 May 2016 13:55:29 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-47248 Hi Mark and all, and thanks again Alan for your great blog!

Mark, I found your comment really interesting so I looked into its assumption that we pay less than socialist countries of Europe. What I found doesn’t support your thesis. Do you have any references to this topic.

Here is one report I found based on a study by Ernst and Young and Deloitte Tax Foundation Calculations: It shows the USA is pretty high up the list at number 6 actually ahead of Italy mentioned in your note that is at number 11.

here is a link: http://taxfoundation.org/blog/us-taxpayers-face-6th-highest-top-marginal-capital-gains-tax-rate-oecd

Alex

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By: mark https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-47022 Sun, 29 May 2016 16:01:25 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-47022 The article is very interesting for people with tax residence in (socialist) europe (like italy) where capital gain is (heavly) taxated.

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By: Jay https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-45522 Fri, 20 May 2016 01:24:14 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-45522 In reply to Arlene.

Arlene,

Thank you for your kind words. This a great place to share and learn with like minded investors!

But I often think we rely too much on Good ‘ol Alan :). When I read the questions our friends ask here they suggest a wealth of underlying knowledge and experience like icebergs below the water line.

Meaning I would love to see this site become a place where people share their experiences as much as they pose questions of Alan.

It’s late in this post cycle, Arlene. So if you read me making this suggestion under future blogs thank you for inspiring the idea :)! – Jay

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By: Arlene https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-45468 Thu, 19 May 2016 11:36:51 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-45468 In reply to Jay.

Alan, Jay,

Thanks so much for sharing your perspectives. I’ve been learning so much on this site. I may try protective puts on a few of my positions.

Arlene

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By: Alan Ellman https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-45429 Wed, 18 May 2016 21:40:45 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-45429 In reply to Ron.

Ron,

If your market outlook is bearish or volatile consider in-the-money call options and out-of-the-money put options:

http://www.thebluecollarinvestor.com/using-out-of-the-money-puts-and-in-the-money-calls-to-manage-bear-markets/

Also, using low-beta stocks and ETFs (with low to moderate implied volatility) will also create a more defensive portfolio. Finally, protective puts are in play if we don’t mind spending the money (I don’t use protective puts but there’s nothing wrong with it if it helps us sleep better at night).

Alan

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By: Alan Ellman https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-45428 Wed, 18 May 2016 21:34:15 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-45428 Premium members:

This week’s 8-page report of top-performing ETFs and analysis of ALL Select Sector Components has been uploaded to your premium site. The report also lists Top-performing ETFs with Weekly options.

Note the unusual number of ETFs priced under $50.00 this week.

For your convenience, here is the link to login to the premium site:

http://www.thebluecollarinvestor.com/member/login.php

NOT A PREMIUM MEMBER? Check out this link:

http://www.thebluecollarinvestor.com/membership.shtml

Alan and the BCI team

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By: Jay https://www.thebluecollarinvestor.com/portfolio-overwriting-should-we-sell-1-month-or-2-month-expirations/#comment-45426 Wed, 18 May 2016 21:11:37 +0000 http://www.thebluecollarinvestor.com/?p=13887#comment-45426 In reply to Cecil.

Cecil,

You are obviously not a newbie to options or investing and as a fellow retiree it is nice to have you here! We have a great comment group.

I consider covered calls, cash secured puts and portfolio overwriting essential tools for any retiree who manages their own money, No better resources than the material on this site and Alan’s books if you are not familiar with those tools.

And there are times, maybe now, given today’s news about a probable rate hike, the often crummy summer seasonality and the uncertainty of a bizarre election year that buying protection makes sense.

Not position by position. But blanket future dated SPY puts funded by call/put premiums and dividends. Then, as you say, sell them when you think the coast is clear before theta decay gets severe. My two cents, – Jay

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