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@Tom: How shall we setup the Team meeting?
I realy like the LI systems. I try to protect my portfolio sometimes by writing OTM calls or buying OTM puts.
I sell calls in special circumstances.
1. Sell call when QQQ is more then 7% away form the 50 day EMA. I have not backtested it, but I win some and loose some. Its a reversion to the mean strategy.2. McMillan has a strategy based on Bollinger Bands for topping/bottoming patterns. (Special setup of BB and Standard Deviation).
Maybe LI could invite McMillan to present it to us. He picked the top of the market in Jan/Feb and the low of the market in March.3. Use the IBD indicator of the Big Picture of the market for bying calls or puts. (Market is in an uptrend (buy calls), Market side ways , Market in correction (buy puts)).
Dear Frank,
Thanks for your clear explanation.
I asume that the sentence “The most important rule is to only use options with an expiry of at least 200 days” is for TLT and GLD. Why are you selecting this duration for GLD and TLT, because for the SPY its 30,60,90?
Willem
Dear Frank,
I understand your position.
But could you give more clearance when you move to the side line and when you go back into the market.
Willem
Frank, You stated that the volatility of the 3 asset classes topped 10 – 20 year maximum. What number of days did you used in your calculation of the volatility?
