Covered Calls and Short Puts work very well… If you manage them and pay attention!

by Ryan Barr on March 22, 2010

in Papermoney

I’m a very busy person.  In my real accounts, I keep a very good eye on my money and have been generating handsome returns over the past few years.  Sadly, this hasn’t played out on the paper money account!

Rather than play around with short calls and puts and all of that fun stuff on individual equities; I’m going back to my old habits and I’m going to start to manage a larger portfolio of Iron Condors in the papermoney account. In all honesty… I hate individual equity positions.  They are horribly volatile, subject to firm risk and there is just too much to pay attention too.  With all of those problems, I just don’t enjoy managing money that way…

I’ve put in orders to basically get flat before I open up any of the Iron Condors.  The account will be down roughly 10% from the initial balance of $100,000, so I’ll be starting at a disadvantage.  No worries, that just means that I might have an incentive to pay attention this time!  Back to the indices, and non-directional plays. Sweet!

Remember, this is play money.  It isn’t real.  These trades are not real.  In fact, I am quite prone to ignore this account and about 6 months later start it up again.  Please, make sure to use your own brain to determine how to allocate and manage your money.  This is just for fun, a touch of education, but most definitely not investment advice.

Oh yeah, I’m going to play around with some positions that I would not have normally done in the past.  We’ll see what happens!

Comments on this entry are closed.