Alp: yes, primarily shares and options
but also looking at gilts to make portfolio
more robust. At present most of my margin capital for
cover of option trades is provided by shares. So in the
event of a market crash I suffer a double whammy
since just when more cover is needed the asset value of the
portfolio providing the margin capital declines .
2005 worked out fine here too but my broker would say
that I was lucky to operate in benign market conditions
which ideally suited my current strategy. It won't last forever.
As the ftse100 reaches higher and higher levels writing puts
becomes increasingly more risky.
That's why , like you, I am happy to trade relatively
range-bound shares like LLOY . I wouldn't exactly say
these "boring" stock are most rewarding but it's not too
difficult to reap 20% + /annum(divis + premiums)
from them for a while anyway .
I also find it more tricky to sell the calls at the right price
since I want to hold on to most of my shares .
I may let SBRY go if they
reach 330/360 range .What's your take on the oils ?
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