But if I'm accused of not grasping how to play options, I admit to knowing only the simplist of transaction types.
Ron^3 simple. You do not and do not wish to understand what factors go into valuing options. There is nothing common sense about it. Writing cover call by individuals is about 85% loser for individuals.
Exactly because they do not know better like you. 70 repeats of the first year experience is not impressive.
It is not a common sense exercise and you betray yourself by insisting it is. How are options valued?
So spare us and spare yourself. The institutional money which values options use powerful computer models and factors you simply refuse to learn.
Now Now RLP's Gasland, Oil Drum and starve human beings for Progressive ethanol corruption
Options are not intuitive investments but rather math driven man made creation. As Ron proves investors do not learn how to 'play around' with them by experience. But personal arrogance and delusion causes him not to stop and even bother to read up and what he is doing - before recommending to others.
Options are a zero sum game.
I did not play options. But rather used puts to lower the risk in my portfolio so at to be able to avoid selling.
Yes my puts on LINE have far greater returns than Ron^3 claims of covered call options. So you will have to find something else to have a tantrum about.
Like companies announcing major layoffs as a result of the Obama win, I bought puts to back up my energy and high beta positions. .