Writing Uncovered Put and Call Combinations [Plastic Comb]

Paul D. Kadavy (Author)

Book Description

Publication Date: July 1, 2009

This book provides a complete education and implementation program for investors who seek an opportunity to achieve double- and even triple-digit annualized investment returns utilizing a strategy of writing uncovered puts and calls on individual stocks and Exchange Traded Funds (ETFs) without owning them. Only one margin amount is required to write both the puts and the calls. It is designed for investors who have experience with covered call writing on individual stocks or ETFs, and preferably also with put option writing, and who are prepared to take greater risk to obtain greater returns. Ways to mitigate risk are also discussed at length in the book.

For the option investor, the simultaneous writing of a put and a call option on the same security can provide a two-fold steady stream of cash income utilizing the same margin requirement if structured properly. It can also provide a chance to purchase desired shares of stock at a lower than current market price, if that is the objective of the investor. This book will give you the theoretical and practical tools necessary to develop and implement this investment discipline. Software templates using Excel are also provided for selecting option alternatives and calculating returns on investment. There is also a file containing a wealth of data on all of the exploding number of current U.S. ETFs, including information about which offer put and call options for writing.

For investors who have time to watch the market, who have the comfort that comes from knowledge and experience with other option writing strategies, and fully understand and are prepared to take additional investment risk, writing uncovered put and call option combinations offers the opportunity for very high returns at a time when the overall long-term outlook for investment returns, both equity and fixed income, seems to be below their historical averages.

Editorial Reviews

From the Author

I have successfully used the put and call writing combination strategy for many years. While it is clearly a much riskier strategy than covered call writing or put option writing, when properly managed it can provide superior investment returns. The program I have developed in this book is based on many years of personal trial and error, incorporating the mistakes I have made and the successes I have had. By following the guidelines in the book, you should be able to quickly climb the learning curve with combination writing, avoiding many mistakes and capitalizing on the opportunities. As you follow the program, expect losses. Also expect that your gains will outweigh your losses over time and provide overall superior performance if you practice what I call a "conservative high risk" approach to investing. This is not an oxymoron. Once you decide to try a high risk strategy, there is a range of risk within it. This book will help you manage that risk and keep it at the lower end of high risk.

About the Author

As a thirty-year career banker and trust officer for Norwest Corporation, now Wells Fargo & Co., one of the nation's largest financial institutions, Paul D. Kadavy was president of numerous banks in three states. He also headed a multi-billion dollar trust department, managed a team of investment professionals, and was a trusted advisor to many of the banks' individual clients. He also subsequently served as president and chief executive officer for another banking enterprise in Las Vegas, Nevada. He is now retired from banking and is a writer, teacher and public speaker.

Kadavy has served on the faculty of the National Graduate Trust School at Northwestern University, The Schools of Banking, Inc., the American Institute of Banking and numerous community colleges in several states. He has been a lecturer on trust, investment and banking subjects to FDIC and Federal Reserve Bank examiners in Washington, D.C. He has been a public speaker for the past twenty-five years.

In addition to authoring Writing Uncovered Put and Call Combinations, Kadavy has also written Covered Call Writing Demystified, Covered Call Writing with Exchange Traded Funds (ETFs), Covered Call Writing with Qs and Diamonds, Put Option Writing Demystified, Short Spider Straddles, Put and Call Option Writing for the Investment Advisor and Financial Planner, Personal Cash Flow and Net Worth Planning Demystified and The Book of World-Class Quotations: The Best of the Best Quotations on Earth. All of his books are available on Amazon.com.

In addition to writing books, he is the author of banking, trust and investment articles for such national publications as Financial Review, Trusts & Estates, Pension World, The Collector/Investor, Cases & Comment and American Bankers Association Trust Management.

See all Editorial Reviews

Product Details

• Plastic Comb: 177 pages
• Publisher: Arrow Publications - Arizona (July 1, 2009)
• Language: English
• ISBN-10: 0971551464
• ISBN-13: 978-0971551466
• Product Dimensions: 8.4 x 5.9 x 0.8 inches
• Shipping Weight: 11.2 ounces (View shipping rates and policies)
• Average Customer Review: 3.3 out of 5 stars  See all reviews (3 customer reviews)
• Amazon Best Sellers Rank: #466,994 in Books (See Top 100 in Books)

More About the Author

As a thirty-year career banker and trust officer for Norwest Corporation, now Wells Fargo & Co., one of the nation's largest financial institutions, Paul D. Kadavy was president of numerous banks in three states. He also headed a multi-billion dollar trust department, managed a team of investment professionals, and was a trusted advisor to many of the banks' individual clients. He also subsequently served as president and chief executive officer for another banking enterprise in Las Vegas, Nevada. Now retired from banking, he is a writer, teacher and public speaker.

Kadavy has served as a faculty member of the National Graduate Trust School at Northwestern University, The Schools of Banking, Inc., the American Institute of Banking and numerous community colleges in several states. He was a lecturer on trust, investment and banking subjects to FDIC and Federal Reserve Bank examiners in Washington, D.C. He has been a public speaker for the past twenty-five years.

He has written many banking, trust and investment articles for such national publications as "Financial Review," "Trusts & Estates," "Pension World," "The Collector/Investor," "Cases & Comment" and "American Bankers Association Trust Management."

Kadavy is the author of many financial and other books including "Covered Call Writing Demystified," "Covered Call Writing with Exchange Traded Funds (ETFs)," "Covered Call Writing with Qs and Diamonds," "Put Option Writing Demystified," "Writing Uncovered Put and Call Combinations," "Short Spider Straddles," "Put and Call Option Writing for the Investment Advisor and Financial Planner," "Personal Cash Flow and Net Worth Planning Demystified" and "The Book of World-Class Quotations: The Best of the Best Quotations on Earth." His books are available on Amazon.com.

Kadavy has completed his first novel and is currently working on a second novel, both of which he plans to publish around the end of the year.

Customer Reviews

Most Helpful Customer Reviews

8 of 9 people found the following review helpful:

3.0 out of 5 stars Interesting read!, May 27, 2007

By 

Mr. Tom E. Keverne - See all my reviews
(REAL NAME)   

This review is from: Writing Uncovered Put and Call Combinations (Plastic Comb)

Have written naked puts a number of times before and although you can loose your shirt quickly with this stratergy am comfortable with the logic behind it. Am not so comfortable with writing naked calls however. This book has got me considering it. As a read it is simple to understand and concise in it's detail of action to take in any situwation should things not turn out as planned,which I liked. I also liked the distinction between trading stocks and etf's and the possible benifits outlined from doing so. The fact it is written by an author with a banking background gives me confidence in his experience of useing the stratergies outlined to use money to make superior returns. Useful book.

6 of 7 people found the following review helpful:

3.0 out of 5 stars Interesting but be careful, April 9, 2009

By 

Edward Huang - See all my reviews
(REAL NAME)   

This review is from: Writing Uncovered Put and Call Combinations (Plastic Comb)

Only 1 chapter describe the author's "strategy" Its really risky as you're short both ways with NO hedge (as compared with spreads) The rest of the book is on options basics which might be informative for those who are new to options. I started out with naked puts and got hurt when market plunged right after Obama's inaguration. Quickly switched to credit spreads and iron condors which are safer and hedged.

3 of 6 people found the following review helpful:

4.0 out of 5 stars All Options, March 10, 2006

By 

Harry Spanakis (Australia) - See all my reviews
(REAL NAME)   

This review is from: Writing Uncovered Put and Call Combinations (Plastic Comb)

I like to read Pauls books because they explain things in a simple and precise manner. I had no idea on understandind Options, but now I am very confident in what I am doing.
I can strongly recommend Pauls books for people starting out in the deritives market.