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

[fenders53]

(05-02-2021, 08:13 AM)crimsonghost747 Wrote:

(05-02-2021, 07:26 AM)fenders53 Wrote: I've been doing that with GOLD and NEM for nearly a year selling puts about 2-3 weeks out usually.  Probably about 30 times.  I got the timing wrong over half the time and it still worked out because the premiums ranged from good to very good. I ended up assigned about three times.  Sold calls a few times on those.

If I was recommending a strategy.... "I'm not a licensed financial advisor, do your own due diligence".........

Just kidding, do this lol....  Spread out your contracts if you do more than one. Nobody knows what gold will do for sure, helicopter money or not.  I happen to think GOLD and NEM are safer than most for some time to come.  They claim they will be cashflow machines with gold much over $1100.  I just don't see gold dipping like that with about every other commodity going GameStop mode lol.  I think we are supposed to bury gold coins in the yard like a proper gold bug but I prefer the dividends from the big miners.    Gold will never be a large part of my port.

BTW, GOLD is supposedly doing a special dividend this summer.  That would make it's yield larger than NEMs for 2021 unless NEM does something similar.  Pretty good chance GOLD will pop some on that announcement.  I don't think a date is published yet but they should have to cash to do it.  

Crypto is an issue for gold right now.  A 50% correction in crypto will alter that thinking. Until then, some fools will think crypto is a hedge against their spec stocks.

Thanks.
Yeah my plan is not 100% ready yet, but I was thinking indeed of grabbing 2-3 different expiry dates for the calls. One might be 2-3 weeks but I think the others will be much further out, I was eyeing September but we will see. Probably at a couple of  different strikes too. Might also sell a put or two but somehow I feel more like a covered call with this but there is still some math to do on those two possibilities.

A special dividend would be a pretty nice bonus on top of the regular div and the option premium.

The best plan is 100% dependent on ones view of gold price moves in the short term.  I own some long shares due to assignments and I don't sell calls against my entire position .  Just in case gold flies right?  I know that is exactly what I was thinking 9 months ago.  Your narrative made complete sense a year ago too.  It ran a little and pulled back where it still hangs out.  I've done this long enough now and racked up a bunch of 2-3% income plays.  I would probably be down 10% on my long shares had I not sold a few calls.  Actually I think I am currently up 10% on GOLD shares and down 10% on NEM shares.  That has absolutely zero to do with the companies.  Just the timing of those particular put sells.  I really think playing it as a partial income and partial longer play isn't a half bad plan.  If you sell enough time and don't get greedy on the premiums you could let it run some.  If you buy shares tomorrow and sell a call for a 3% SP gain you are accepting the risk of a big slide and eliminating your chance of a decent gain too cheap.  I've done that too often for some quick income in other div stocks.  The upside needs to be proportional to the downside risk.  Telling you what you already know but it is very easy to forget when I am trying to steal $100 income today.