(03-30-2020, 10:03 AM)Otter Wrote: Not sure if this counts as conservative or not, but compared to my recent options forays, it feels like it.
Bought 400 shares of SLV @ 13.23, Sold covered 5/1/20 13.50 Calls against it for a quick 6% premium.
Silver may continue a downturn in the near term as an industrial metal, but I'm thinking the endless money printing eventually brings it up from decadal lows.
This qualifies Otter. Take some money upfront on shares that hedge your port. Pretty much the same outcome as selling a near the money put on SLV. You get paid today and you are OK with the outcome either way. There are months grabbing some income is the only reason I am up. Anyone selling options is spoiled right now with these premiums.