April Puts and Put-Spread? Chart shows this company has been in a very clear uptrend. Expensive, but because it had great earnings. A Put-Spread would indicate the stock is going down. You do a Put-Spread to protect yourself. If you don't think the stock is going to collapse, this is not a bad way of doing it.

Options. If you write them every month and they expire on Saturday, do you wait until Monday to write a new option? If he knows he is not going to be exercised by the last hour on Friday, he will rewrite on Friday because he'd rather pick up those extra 2 days of option premiums over the weekend. If there is any question, he’ll wait and rewrite on Monday.

Options. If you either don't get Put or Called or you do, do you go back to the same stock? There are a number of stocks that he likes and he can see where the earnings momentum is, and he knows what the option premiums are, he tries to write them when they are down. He won't always stick to the same name.

Puts? Loves this one. Buys when it is down. Super high volatility. If you like this company, this is a great way to own this stock.

Buying options. $55 strike in January and $60 in March? He is not a big believer in buying options. He only sells because when you buy the probability of making money is quite low. (But if you do, you’ll make a lot of money.) If you sell, you’ll always make money but you'll never make a fortune.

(A Top Pick July 20/11. Down 10%.) Sold Aug Puts for $1.05. Stock took a severe drop along with a lot of stocks. Could have bought the Put back but because of volatility, the price increased. A way to get around it is to Short the stock, which he did.

(A Top Pick July 20/11. Down 8%.) Sold Aug Puts for $1.05. Stock took a severe drop along with a lot of stocks. Could have bought the Put back but because of volatility, the price increased. A way to get around it is to Short the stock, which he did.

(A Top Pick July 20/11. Down 5%.) Sold Aug Puts for $1.05. Stock took a severe drop along with a lot of stocks. Could have bought the Put back but because of volatility, the price increased. A way to get around it is to Short the stock, which he did.

Writing a covered call on a stock where you are underwater 10%, would you go more than one month in order to make some decent premium? Never think about getting even. If you lost 10%, you have lost 10%. Every position, think about it as though you just bought it.

Natural gas? Doesn't like natural gas because there is too much of it. With all the new finds in shale gas, it is great for us because maybe we become energy independent.

Writing covered calls and writing puts simultaneously on bank stocks during high volatility times such as 2009? Doesn't like this strategy because you expose yourself to a massive amount of downside risk. This means you are calling the market.

Buying a Put when it reaches its high of around $347-$350 with the idea of selling it if it goes down to $320-$310. Good strategy? This is a classic earnings momentum stock. He doesn't like to buy options because by definition you could lose 100% if you're wrong. If you are going to do it, buy a longer dated option (2 month or 3 month), pay the premium and then sell it as it migrates in 1 month.

Market. Sovereign risk is the key negative that we are going to have as investors for a very long period of time. Most of the developed world, excluding Canada and Australia, has a weak balance sheet with huge deficit problems. We’ll always have volatility but between now and when the US debt ceiling is raised, it will be exceptionally high. He continues to use options to catch volatility but is also hedging his portfolios.

On covered calls, do you look at the dividend as well or just do the covered calls? He doesn't pay attention to the dividends. In the scheme of things, if you write a covered call at the money, you'll be making 3% a month. Worrying about the dividend is infinitesimal to him.