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RTW - New Position (EWZ)
I'm starting a new entry for weekly holdings of "Riding the Wave" candidates. Since they are weekly holdings, I don't plan on selling calls against them. Maybe in the a week leading into option expiration. However, I would note that the current 3.7% time value for the month looks enticing relative to other calls I've sold for the month.The RTW method is the one I indicated on the JustCoveredCalls forum that has too many good months -- that capping gains on good months by selling covered calls on the positions was counter-productive.We'll see how it goes in real time: | Price | Date | Description | Total | aXIRR | aROI |
| $75.76 | 2009-10-19 | Buy 1000 EWZ @ $75.76 | -$75,758.10 | -- | -- |
Posts
Hi Randy,
ReplyDeleteI'm not familiar with "Riding the Wave".
Does RTW have a website you use?
Or how did you decide to use EWZ for your RTW position?
You also say "weekly" holding. Do you sell and change to something else next week, or what?
Also, are your trades on this blog your actual trades or is this a "paper trading" blog site?
Regards,
Jeff
RTW is from The Motley Fool Mechanical Investing board. It's an attempt to create a mechanical system to emulate the Decision Moose model. It's similar to the Faber asset allocation model in that it uses two momentum measures to move between different asset types.
ReplyDeleteI took the TMF RTW workbook and converted the workbook to use my SMF add-in. I did upload the daily, weekly, and monthly models to the ETF_Covered_Calls files area, so we can discuss the details more over there if you want.
I did make this actual trade this morning. EWZ has been the weekly pick since 9/18. On the option month model, EWZ has almost been the top pick since 4/17. I haven't really decided which model (or combination) I'll follow long-term, but right now EWZ is the top of them all.