Sharelord Strategy

Hey guys,

I am very curious to see if there is anyone who is doing the strategies and following the trading report through Sharelord.

The strategy is "collared call" and it is done weekly not monthly. The returns they said you'd get is between 2-4% per week.

Before I do anything, I'd just like to confirm that!

Mike.

MichaelCao said:

Hey guys,

I am very curious to see if there is anyone who is doing the strategies and following the trading report through Sharelord.

The strategy is "collared call" and it is done weekly not monthly. The returns they said you'd get is between 2-4% per week.

Before I do anything, I'd just like to confirm that!

Mike.

Click to expand...

Hi Mike,

Reading this old thread about Sharelord may hopefully answer some of the questions you have about them: https://www.aussiestockforums.com/forums/showthread.php?t=11858

I have in the past used the Sharelord basic covered calls strategy and followed their stock pick type recommendations. I ended up NOT making a profit after several months. This was in mid-late 2008 and you know what happened then!

If you look at the other thread in the above post you'll find a very informed comment relating to the potential upside/downside of this type of strategy.

I'm not dismising it, in fact I'm currently revisiting the basic covered call (with put) strategy as part of a plan to generate monthly income from my portfolio. This time I'll be a lot more cautious, put less cash in and always protect my positions.

I can't comment specifically about the collared call weekly strategy, but don't sell your house just yet!

Cheers,

Dwight

CashflowOz said:

I have in the past used the Sharelord basic covered calls strategy and followed their stock pick type recommendations. I ended up NOT making a profit after several months. This was in mid-late 2008 and you know what happened then!

If you look at the other thread in the above post you'll find a very informed comment relating to the potential upside/downside of this type of strategy.

I'm not dismising it, in fact I'm currently revisiting the basic covered call (with put) strategy as part of a plan to generate monthly income from my portfolio. This time I'll be a lot more cautious, put less cash in and always protect my positions.

I can't comment specifically about the collared call weekly strategy, but don't sell your house just yet!

Cheers,

Dwight

Click to expand...

Think about the following:

Covered call = long stock+short call : limited gain, losses incurred as underlying decreases potentially to zero
Retail and the usual financial service monkeys say this is safe

Sold put : limited gain, losses to zero
Monkeys say this is very risky

Sold put and covered call have the same payoffs and the risk comes down to the users leverage.

Now the brokers have you comfortable with the twice charged stock and options why not buy a put to protect it (or rack another lot of fees, easy business).

Well turns out that a collar (sold call + long stock + long put) has the same payoff of a bull call spread.

So, especially if you have a short to medium term time frame there is probably a less fee intensive position whether it be covered calls or collars.