Conservative option strategies, what did you buy or sell today?

[fenders53]

(05-16-2020, 08:13 AM)john Wrote: Had 4 stocks "put" to me this week
F @ $5  
CCL @ $13.5
KO @ $ 45
ADM @ $ 34.5 I am ok with the results got paid good to get assigned. KO and ADM have dividends coming up.
I will sell CALLS against all of these this week.
Had 6 expire worthless this week
GEO CALL @ $ 16
WFC CALL @ $ 28
T CALL @ $32
WEN PUT @ $16
BTI PUT @ $35
JETS PUT @ $12

Hopefully KO and ADM will run up a buck for you prior to dividend.  

Looks like you'll have to sell the ADM call on Monday as it goes ex-Div on Tues.  I'm an ADM fan but I think it's headed lower after Div. They are facing some headwinds the next few months (VERY low grain prices, saber rattling with China could destroy the current AG trade agreement in a day.  

KO is getting oversold.  I wouldn't  rush that one if the call premium isn't worth it.  KO never stays down too long with that big safe dividend.  

F is tough to sell options on but I would do it to keep the income flowing.  It's stuck down here for a long time I think.   

I rolled a few puts and calls forward this week.  No assignments since the big crash.  Rolling them tends to work out in just a few months or sometimes weeks.  I do have some PFE shares deep in the money on a couple calls I sold too early.  I have many more shares but I got a little impatient and now I'm chasing a couple contracts for who knows how long.

And here is another trick that you might find handy at very specific times.....

You are assigned stock XYZ and it's say $26 and you are in at $28 basis.  The short-term story changed and you are down some and you are now very bearish on the stock.  The closest call is at $30. 15%+ out of the money and the premium is very weak.  You immediately sell the shares and then sell a put at $25 which has a good premium as it's close to the money.  You now have some downside protection without bailing on the stock and conceding the loss.  I did this quite a few times in early MAR when the virus hit.  It was pretty clear which stocks were heading lower.  This is NOT something I do with my core DGI holdings.  Just the income game stocks, which I own very few of in this economy.