With the stock at $26,05, sold 50 of the 10-strike naked puts out to Jan. 2014 for JCP. Sales price of 483 per contract. Net proceeds after commissions of $4,115 with cash margin requirements being $9,650. Nominal return of 42.6%n for 72.6 weeks if the margin-safe price all the way down to $11.25 holds. The annualized rate is 27.1% if held to expiration but with the almost-certain early out, the actual annualized rate of return should be in the low 30's. How incredible for TEN-strike naked puts with the stock at TWENTY-SIX.
That particular option is selling at around $ 82 to $ 83 per contract; not $ 483 as you stated.
"With the stock at $26,05, sold 50 of the 10-strike naked puts out to Jan. 2014 for JCP. Sales price of 483 per contract."
You are wrong again!
Your betters for over a decade have shown you how easy it is to buy near the bottom & sell near the top.
That's why we traders have whipped your lardar$e year after year. How many investors do you actually know?
Everyone on this board has beaten you for the year, the decade, the century & ever since your mom whelped you onto your head, pathetic loser.
I'm truly the Real McCoy and I have millionaires and multi-millionaires beating a path to my door. These are truly the salad days for me.
hey mccoy,if they think that you're gonna make them money,tell them they need reservations like you for years to come,OR,strike 3 and they're out,LMAO.
You won't get to first base in touting anything until you unequivocally repudiate your ridiculous claim that the original basis in Maniacal Methods was 100K. Under no rational standard of honesty or propriety can one put 100K into Leaps, write naked puts using ADDITIONAL cash in the account to meet the required margin and compute returns on a base of 100K.
There are numerous other problems with your calculations that have been documented here repeatedly. But the above is so blatant that nothing matters until your phony claim is repudiated.
2/3 of my overall portfolio at the time consisted of non-Pfizer STOCK and that stock provided margin availability for writing naked puts. The system fully allows that kind of leverage.
The cost basis for the entire portfolio which is what YOU keep focusing on cannot be any more than the money originally invested until more money is added.
I added NO additional money through 6/2/08 and therefore my cost basis was never any more than the original amounts I had in there. I'm 100% right on this issue and will never repudiate anything when I'm right.
Using up margin availability to write naked puts adds to the risk and to the leverage but it does NOT add to the cost basis. That is fundamental. If you don't understand that, you don't understand how leverage works.
I never denied that I was using a lot of leverage. But I'll deny until my dying day that using leverage ever added to the cost basis.