The Rich MacDuff Investment Philosophy (Part 1)

In the last post, aside from illustrating the “rolling down” management technique I introduced you to Rich MacDuff and his Systematic Covered Writing (SysCW). Today I want to present a MacDuff disclaimer before I go on to further discuss his trading philosophy.

I mentioned in the last post that I recommend MacDuff’s free content and that I am trying to determine whether SysCW offers a viable approach to CC/CSP trading. Part of the reason I remain in evaluation phase and the reason I recommend you not pay him any money is explained here.

This SEC finding reverberates with suspicion I have shared in previous posts regarding statements of success by financial advisors, investment newsletters, trader’s education programs, and the like that litter the landscape of the industry. Because I am not a lawyer, I will not try to put into proper perspective how severe MacDuff’s transgressions are. Please read, become aware, and form your own conclusions.

All I will say is that given the financial industry I, personally, begin with a certain dose of skepticism. Knowing that someone has been found guilty gives me all the more reason to critically evaluate and identify any logical flaws that may exist.

Despite this Securities Act violation, from all my reading I believe that SysCW includes strategic themes that run through many different CC/CSP trading approaches. If CC/CSP trading is going to work then odds are implementation will include some of these more common themes. I find it worth my study for this reason.

Once again, the ultimate question will be whether the comprehensive guidelines represent a viable trading approach.

In my next post, I will talk more about some general tenets of MacDuff’s [professed?] trading philosophy.