Recycling of Market Participants (Part 1)

On the heels of this post, I recently stumbled upon the following July 2015 thread from a covered calls forum that I saved.

Sun Jul 12, 2015 12:22 pm (PDT) . Posted by AS:

Where is everyone???



Sun Jul 12, 2015 12:55 pm (PDT) . Posted by SP:

Probably vacationing.



Sun Jul 12, 2015 3:21 pm (PDT) . Posted by SB:

People like talking when they make money, remain silent when they lose it. How have covered calls in general done over the last few weeks?



Sun Jul 12, 2015 9:48 pm (PDT) . Posted by JW:

I am thinking SP has if correct, a lot of folks are away for the summer break. This is traditionally a very slow time of year. One member states on the bottom of his posts that “boring is better.” That is certainly the case with myself. There are periods when I feel like I am on a perpetual vacation here… My “job” truly is like watching paint dry. Most of this group will not want to read about each time I pull the trigger on my boring income trades.



Mon Jul 13, 2015 5:03 am (PDT) . Posted by Mark:

On this point I very much disagree with you. Yes, “boring is better” but people are usually losing money when these type of trades are not boring.

I think SB is right on: “people like talking when they make money, remain silent when they lose it.”

This is just my opinion because it’s not something we can ever know for certain.



On Jul 13, 2015, at 3:10 pm (PDT) . Posted by MM:

Or some people aren’t participating.

I’ve been in cash for some months with only a few selective trades which aren’t in options. It’s been a time to be very, very selective in my opinion.



On Jul 13, 2015, at 4:37 pm (PDT) . Posted by MA:

I, for one, have been very busy at work and haven’t had the time it takes to do this right, so I’ve been on the sidelines for the past few months, which appears to be a good place to be with all the turmoil going on with Greece and the market’s reaction.



On Jul 13, 2015, at 4:44 pm (PDT) . Posted by JW:

Many new traders think they are not trading when they are in cash. I think those who have been in the battle for a while know well that cash is a position you chose and there are times that it is the best position.

One thing I have grown very cautious about is posting our bragging rights trades. For example, we did a series of trades on JRJC… [and] nailed returns as high as 13% per monthly cycle selling put options…

I dislike posting these positions for two reasons. I have had a few folks call me a liar when they could not replicate the trade a few days later because the stock took off and they did not have the patience to wait for the right entry opportunity. The other reason is I do not like encouraging newbies to work with volatile issues like JRJC until they have experience and a good plan of how to handle the trade if the tide turns against them.



To be continued next time.