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

[pdaignau]

(01-04-2021, 09:20 AM)fenders53 Wrote: PUT Strike  28  EXP 1/15  Premium received 51.  Currently 41   Up 10
PUT Strike 29  EXP 1/8        57/86  Down 29
CALL Strike 28 EXP 1/15      60/65  Down 5
CALL Strike 30 EXP 1/8        38/11  Up 27
CALL Strike 32.50  EXP 1/22 54/3   Up 51

This is all about consistent income for me.  I have no emotional attachment to T.  T pays a div this week so that is mostly locked in.  I have collected $260 premium up front on these contracts and the extrinsic values should fall rapidly as expirations approach.  This doesn't have to work out perfectly to be a win.  We'll see what happens.    

It took me a few minutes to understand what you meant by "Up" and "Down" on each option.  It's the difference you would make if you closed out the position by buying the same PUT/CALL.

A few questions to help to me better understand,

• When did you write all these?
  
• Is there a name for the strategy you're doing?
  

It seems, because AT&T was in the middle of a range and/or it was a "boring income stock", you simply bought PUTS and CALLS surrounding its current price.  Then, when the stocks price fluctuates enough, you close out positions for cheap.  I'll have to see what your thinking is on rolling these forward for small losses.

My quicky-and-easy take-a-way would be to watch the two Cash Secured Puts (CSP) I wrote for Feb. 5th for an opportunity to close them out for a fraction of the cost I made.  If lucky, I could free up my cash sooner allowing me to write more CSPs.

Thank you for sharing,
Paul