DiviMo's Blog : PEP: Today's robbery by RTMB

These will make money - margin requirement is normally 25% of stock price meaning $1550
If one is sure of trade - one can ue the same funds - meaning $1500 cash out lay to do a put spread meaning sell 62 puts and buy 60 puts - the premium may reduce to 38 cents - one can still do 5x as many options - Now the margin requirment per contract is $200 instead of $1500
This means one can earn 7 X 38 cents = $250 instead of $72 for the same risk exposure.
Just a thought.
I will probable do this spread on Monday
Thanks - good info

Basically whut ole Rimmjob is tryin ta say is that ifn ya sign up fer his service you will be able to "avoid the GIGUNDO movers" he spewed about in his last blog ann he'll give ya sheeyit like the crapola on page 1 ov his closed list. WOW! .52% in 3 daze! SAWEEET! LOL Primmie55...close out yer freakin ACAT chort so it kin "finally" dump already, clown! LOL 3J

Actually at the close of business the spread that rjm77me proposes will provide a net premium of 43. ...in this case selling 62.5 puts and buy 60 puts.

I wrote a number of puts this past week (check us at stock twits). The problem a lot of investors have is they are looking for an “easy” put selling opportunity. They rarely come around. When markets sell off, fear keeps a lot of investors from putting their capital to work. The RobtheMarketBlind bandit traders know when to get in. This week I sold PEP contracts. You take your time and sell a handful with each fall back. But for many investors they do not understand that the selling is what they want and it is when they should be looking to sell puts. There is no need to commit all your capital. You take your time and stretch out your put selling over a period of days and weeks, taking advantage all the time of weakness in markets and in individual stocks.

PEP is a perfect example. I got better premiums thursday than Friday, yet Friday the stock pushed lower. Thursday fear was higher in PEP and some investors paid too much for puts as they tried to protect their positions or felt that PEP would fall lower. Perhaps it will, but the best premiums are during the fear period which you can spot just by following the stock’s volatility throughout the day. One needs to take advantage during individual stock panic fears on a strong stock and 'rob the markets blind'.



It takes investors using the RobtheMarketBlind methodology to step up and risk their capital while others are selling their stock and buying puts. For those who cannot stomach selling puts while stocks are collapsing, they need to look at other option strategies. Using the writing naked puts strategy I got over $70 premium. The other way , the spread, yields at best $43. And besides, RobtheMarketsBlind is currently batting 100% , no misses, all winners.

We'll soon be doing our own alerts/emails for trade picks and it will be free for six months!

Free fer 3 mumphs....MotoRooter will be defunckt by May...ifn I May say so meself :-) 3J