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The week's question
In March 2025, in the thread "Re: OT, out", Umm asked the members: "Do you think it is because America is made up of magical soil that makes businesses based in America magically profitable?" This week it is put to everyone again. The button below opens the small thread re-asking it - read what others have said so far, then give your own answer as an ordinary reply.
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Investment Strategies / Mechanical Investing
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Author: elann ✸✹🐝  😊 😞
Number: of 6243 
Subject: Re: 6/3 Options on RRS126-2sigma
Date: 07/19/23 2:02 PM
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No. of Recommendations: 9
Since the options are 6/3, do you run 3 overlapping sets of options,so you have one set expiring each month? Or do you simply do it once per quarter? What is your base vs active ratio (e.g.: do you have 10% of the money in options, 90% in cash)? How do you go about selecting which options to buy once you have located the set of stocks?

I've shared all this in the past, but anyway;

Yes, there are 3 overlapping sets, with one rolling over each month. Every set begins with 1/9th of the current portfolio total, so on average I always have 1/3 invested in options. The remaining 2/3 are in cash or fixed income investments.
The options selected are 6 to 8 months from expiration and 0 to 10% OTM. Five different options are selected each month, in stocks for which I don't already hold options in the prior sets.

BTW, I responded from memory yesterday about the recent performance. June was actually a very good month too for my options.

Elan
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