Systematic Covered Writing begins with the establishment of Initial Positions. The covered writer has come to realize that after all of the analysis, after all of the research, that when it comes right down to it, nobody knows which stocks are going to be higher a year from now. With most investment strategies, there is a need for the market (the holding) to move in a particular direction in order for the 'strategy' to end profitably (i.e. 'to work'). As you contemplate a particular example, continually, please ask yourself "what has to happen in order for the example being presented to work". Does the stock have to increase or decrease or can it just stay where it is? If the latter is the case, then do we really have to know which stock is going to appreciate?
You will be able to select examples by clicking the Listing Data (which may also be the trade date), by the Stock Symbol or by the Systematic Covered Writing strategy.
Some of the examples contain valuable information about the selection process. For older examples, the outcome is also presented. If additional information is added to an Email Example, the word 'Plus' is added to the Example Type column.
The Initial Position Strategy
PLEASE NOTE ... As of 2009, the vast majority of Initial Position examples are share with subscribers on the day they take place via a direct email. As some point ... the information below may be updated to include more current examples.
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During the later part of April and the beginning of May 2007, over sixty Initial Position examples were added to this Web site. The May 1st link below will take you to a symbol list, which leads to the individual pages. A great deal of insight can be gleamed from those examples.