IMO, the gap is what you have to be worried about. Going to bed with everything being happy, waking up and shit has hit the fan. I try to stay WAY outside the historic largest gap and then control the rest with an exit strategy that is agressively tight. Finally, stay away from positions that could ...

I have been trading this way for about a year.

There are many others out there blogging about similar trading styles. I think the difference between all of us is how we pick our strikes and exit strategies. I am probably more conservative with regards to both.

That is an easy one to answer but takes a little explaining. 1) All of my retirement money, stuff I can't touch until I am older, is in PP. All income generated here stays in the accounts. 2) I have an amount equal to that rolling in the VP presented in the blog. Although towards the end of last yea...

Interesting. How do you pick the underlying stock?  How do you determine if you're going to sell a call or a put? As far as pick the positions, I wrote about that here, http://strangleprofits.blogspot.com/2012/12/just-waiting.html. I am trying to trade more indexes and less individual equities thes...

After reading many posts of other's ways of handling their own VP, I decided I would post a little about my own. I have been tracking my VP in a blog, which can be found here, http://strangleprofits.blogspot.com. I try to post every weekend but sometimes, I may miss a week. I am due to put up anothe...

I would argue that the PP's attempts to be neutral may not really be so because I'm not sure I believe that 25% Stocks = 25% Gold = 25% Bonds = 25% Cash. In other words, it may take different amounts of each asset to react in the same way to it's optimum economic condition. You're certainly right… ...

I would argue that the PP's attempts to be neutral may not really be so because I'm not sure I believe that 25% Stocks = 25% Gold = 25% Bonds = 25% Cash. In other words, it may take different amounts of each asset to react in the same way to it's optimum economic condition. I would agree with you o...

To chime a thought here as I have been reading many of the posts on this board, the core aspects that make the PP interesting is it is rooted in a basic understanding on how certain assets act under certain conditions, not past performance as an indicator of future success. If I understand the histo...

Isn't the rule to rebalance once a year back to 4x25 and then any time when any asset hits an upper or lower band?

Unless I missed it somewhere, the real reason we can continue to print money and carry indefinite debt is military might. Our military is bigger, stronger and more effective than the rest of the world. The fear that should be in everybody's mind is China military might. They get it together over the...

True.  But what does it mean to fall off the cliff?  Congress has until April 15, 2014 (with many caveats) to change the rules for tax year 2013.  The only thing really pressing at this point is the AMT for tax year 2012.  It's true that the specter of unresolved taxes will cause a lot of uncertain...

I have to agree with Cash is king. If you believe the press, going over the Cliff with no intervention will be a drag on the economy resulting is a direct hit to GDP and a rise in unemployment resulting in recession. While no asset class prevails in recession, cash will soften the blow. Even if ther...

Which asset class do you think will perform best as we go over the cliff? Stocks? Bonds? Gold? Cash?

Which class performed the best in August 2011 when we had the debt ceiling crisis?