This blog is intended to serve as a journal for my experimentation with options (derivatives) based trading. I am new to this and want to learn more about this fascinating financial instrument. In my opinion, the best approach for this is to do it yourself, but with hypothetical money 
So, for this blog I will assume
- Initial capital of $1,000,000.
- My experimentation will only involve selling (writing) short term, deep in the money covered calls.
- No individual position will exceed $25000.
- To keep things simple, I will assume no transaction costs. In reality, these costs are a function of your brokerage house and/or number of traded options/shares.
At the end of every month (or possibly 2 weeks), I will write about performance of this portfolio and compare it with standard indexes for evaluation. I will also make all trades available (at some point in the future) in a much nicer format (like a spreadsheet).
Disclaimer: The content of this blog is for informational and educational purposes only. If you invest using information contained here, do so at your own risk. Options trading is inherently risky and can have weird tax implications. Be sure to consult your tax advisor for the same. You may want to find more information about options trading using various search engines like Google, Yahoo etc.
Important Note: Options involve risk and are not suitable for all investors. For more information, please read the Characteristics and Risks of Standardized Options.
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