Your Option Hedge Fund Book
Dear Mark,

I liked your Short Book on Options so much thank you! that I am slowly working my way through your book to Create Your Own Hedge Fund using ETFs and options.

I never realized how many and different kinds of ETFs there are. And the list is even larger today.  More and more ETFs are being introduced into the marketplace, but most of the new ones do not have listed options. I like the idea of being able to diversify using ETF's because it is very difficult using using options due to the relatively few number I hold at one time, maybe 6 or 7 tops now. The diversification aspect is a very positive feature.  Of course, one must accept smaller option premiums on these ETFs than one gets with individual stocks.  But to me, the added safety is worth it. 

I think the chapter on the various ways to roll a position and the detailed analysis of exactly what to look for, is
the best I have read.Thanks again. It can be a very confusing topic. Have you ever used charts, trend lines and any of the many moving averages to help analyze which way to roll a short call?  No.  But that's a personal decision.  I don't do it because my track record of predicting market direction is not good.  Thus, I don't want to open a position (or roll into one) that needs a market move to be profitable.  It's true that covered call writing and naked put selling are both bullish strategies, but to profit, one does not need the underlying stock or ETF to advance.  All one needs is for it not to decline by too much.  However, if you have the ability to be a better than average direction picker, then, by all means, establish more bullish or more bearish positions (based on your charts) to allow you to make extra money.  I can't do it, so do not make the attempt.

Best regards,

Mark D. Wolfinger
Create Your Own Hedge Fund: Increase Profits and Reduce Risk With ETFs & Options