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

[fenders53]

(01-03-2021, 07:36 PM)pdaignau Wrote:

(01-03-2021, 11:07 AM)fenders53 Wrote: If you will check the thread daily I will post up my live T trade details for discussion.

I don't post too often, but I usually check the site several times a week.  If you don't mind sharing, I'd be more than happy to learn.

I too have 300+ shares of AT&T.  I have this on DRIP.  I personally don't think AT&T is high enough to start writing covered calls.  I'm not sure I'd risk that on these 300 shares.

I did write 2 cash secured puts for Feb. 5th at $27.00.  I don't think AT&T will get this low unless the whole market tanks.  If I did end up with 200 more shares, I'd either sell them or write covered calls against them.

Paul

OK, I will post the details tomorrow.  NilesMike and I will likely have a different spin and that's OK.   You don't have to adopt a strategy with hard and fast rules, but you can if you prefer.  What you shouldn't do is randomly buy and sell them at any given strike or expiration.  For a long time I just let them all expire.  There are a lot of times that is far from an optimum plan, for a number of reasons.  The tax status of your account has some bearing on decisions as well.  Of course you don't have to sell covered calls on your current T position.  For income stocks I tend to do that with at least some of my shares unless the stock is rock bottom and or below my basis.  I usually wait for the stock to run some, but not always.  Selling covered calls is a good way to give your shares away too cheap in a quality growth stock in a bull market.