12-19-2021, 12:58 PM
It will be interesting to follow along. Generally speaking, I am not looking for a quick exit necessarily.
You'll get a feel for what I am doing soon enough. Here is an example of a typical trade .
Started off with 100 shares of RTX pre-merger near the low. Should have bought more but hindsight is 20/20. I was willing to own 300-400 shares so I've sold puts for over a year. Always one or two open. They expired worthless at least 15 times and I collect more premium again next month. Incoe FAR exceeds the dividend but I collect some dividends as well. Ended up with 200 shares and when they ran sold some cover calls always out of the money. They expired too and more income. The shares have fallen back to six months ago prices, but I am up considerably. If the stock absolutely launches higher I'll miss out on some gains, but still own some shares. The risk reward is pretty good. I do this with 15 or so stocks most all of the time and the income piles up. If the market gets truly slammed I'll own a bunch of shares suddenly. It would be no worse than if I just bought them now at higher prices. Nothing with a good return potential is risk free.
You'll get a feel for what I am doing soon enough. Here is an example of a typical trade .
Started off with 100 shares of RTX pre-merger near the low. Should have bought more but hindsight is 20/20. I was willing to own 300-400 shares so I've sold puts for over a year. Always one or two open. They expired worthless at least 15 times and I collect more premium again next month. Incoe FAR exceeds the dividend but I collect some dividends as well. Ended up with 200 shares and when they ran sold some cover calls always out of the money. They expired too and more income. The shares have fallen back to six months ago prices, but I am up considerably. If the stock absolutely launches higher I'll miss out on some gains, but still own some shares. The risk reward is pretty good. I do this with 15 or so stocks most all of the time and the income piles up. If the market gets truly slammed I'll own a bunch of shares suddenly. It would be no worse than if I just bought them now at higher prices. Nothing with a good return potential is risk free.