03-15-2014, 09:15 PM
Are you doing all of this in a tax-deferred account?
With respect to one's main portfolio, I am comfortable with the cash-secured puts on stock that you want to purchase, but want a better price. And I am comfortable with selling the covered calls as a way to juice returns on something you want to get rid of. The only play that I have not personally made my peace with is selling covered calls on something that you want to hold long term.
I'm also cool with using options to scratch the gambling itch, so long as it is only play money. I'm still sitting on some F calls myself!
With respect to one's main portfolio, I am comfortable with the cash-secured puts on stock that you want to purchase, but want a better price. And I am comfortable with selling the covered calls as a way to juice returns on something you want to get rid of. The only play that I have not personally made my peace with is selling covered calls on something that you want to hold long term.
I'm also cool with using options to scratch the gambling itch, so long as it is only play money. I'm still sitting on some F calls myself!