05-17-2020, 02:34 PM
(05-17-2020, 12:33 PM)NilesMike Wrote:I have a lot of puts open for KO right now. I picked my strikes right and they keep expiring so no shares yet, but I am going to add more. I am about to add more T and MO puts to the list as well. I'd like to take some vacations in peace this summer and need to get even more defensive until fall.(05-17-2020, 10:59 AM)fenders53 Wrote: Did you miss the part that I am dumping the shares first, then immediately selling a new put a few bucks (or whatever) cheaper? There are no new shares. The same 100 I had (per contract obviously), unless the stock runs as I then incorrectly called the bottom. I'm not averaging down a dog with additional new shares.
What's your exit strategy? Just sell it and run? I definitely do that sometimes if it makes sense.
And BTW I didn't know DAL was a sure dog at the time.
On speculative trades, yes. If it runs too far against me, I buy the put back (for a loss). I never get married to any of those underlyings.
If the put is sold for better entry on a stock which I like, I'll try to sell a covered call if the premium is acceptable. If the premium is too low, I will just sit on it and collect dividends.
I actually opened a new taxable account where I will be selling puts and covered calls in KO only, with all profits going to buy more KO shares.
For the record, if you, Otter or Eric lived closer I'd tell my wife to seek advice from you if I were struck by lightning tomorrow. Take that as a high compliment even if I argue with you guys for entertainment.
You and I can handle ourselves. John scares me a little lol, and I really am trying to help. At the risk of annoying him, I think he is still chasing a little too much junk in a sketchy market. Specs are fun but it has to be a very small part of your game or you'll get burned soon enough. Even 25% junk can wreck you so bad for years that you'd be better off in an index fund. CV19 hurt me with only 10% spec when I happened to pick the wrong sectors.