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Real-Money Stock Picks / Messed-Up Expectations Portfolio


Subject:  Money, Money, Money Date:  12/31/2016  7:38 AM
Author:  JimmytheStick Number:  1283 of 1287

I was trying to reach Jim Mueller regarding his article 'Money, Money, Money' which seems like it was written for me. My question regarding the scenario below, how much capital of the $150,000 will need to be set aside quarterly for the puts that might be assigned?

To illustrate, if I have a portfolio worth $150,000 at the beginning of the year, 10% of that is $15,000 for the year, which means about $3,750 per quarter. (I avoid monthly targets because of that same gritted-teeth trap, plus options naturally fall into a quarterly rhythm for rolling or writing new ones.) But if I make $2,800 or so a quarter, I'll be satisfied.

Are you using the entire $150,000 in this illustration to achieve the quarterly returns which does not account for any long term positions.
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