Covered Call / Cash-Secured Put Investing: Stage 1 (Asset Allocation)
- Asset Allocation
- Stock Selection
- Call Selection (Which Includes Strike Price, and Expiration month)
- Put Selection (Which Includes Strike Price, and Expiration month)
- Roll-Up/Roll-Down
- Roll-Forward/Roll-Backward
- Exiting Before Expiration
These are the three topics that I plan to cover in my review of different covered call strategies. Please let me know if anyone has other topics they feel would be relevant to include. Lastly, asset allocation is an area that isnt really discussed very much in the covered call strategies I have found (though the covered calls advisor discusses it at length). If anyone has any insight they would like to share please comment on this post or email me at coveredcallsinvestor at gmail.com.
Just thought you might want to know about the Schooner Growth and Income Mutual Fund (SCNAX). The managers are currently using a buy-write strategy on a large cap portfolio. When the VIX is low, they buy convertibles. May be the only mutual fund in the industry using this strategy.
ReplyDeleteCheck it out on Morningstar.
Anonymous,
ReplyDeleteThanks for the post. The fund looks pretty interesting. I have found a few buy-write funds in the past, they typically tend to be closed-end funds. Usually the problem ends up being in the fees for the funds. Schooner is a prime example of this, charging a hefty 4.75% front-end load, and 2% expense fee. I have looked at the Madison Claymore closed-end fund before (MCN) and found that overall it hasnt performed as well as I would have expected as a buy-write. Jeff Partlow (coveredcallsadvisor.blogspot.com) has a much better record. So all in all, I think it's great that more focus is being placed on the buy-write strategy, but if you have the time, I would always favor doing the legwork and stock selection yourself.
Thanks Again For The Post!
Jake