(07-08-2021, 11:00 PM)crimsonghost747 Wrote: Not too sure how I feel about anything with a debit, but it's definitely something I'll look into.Go with what you find comfortable until you have some repetitions in. I wish my IRA broker would allow spreads as I would do a few each month.
In general I'm absolutely terrible with timing, which is why 99% of my trades is selling puts or covered calls. The chance to roll forward for more $$$ has been great for me, my timing can be wrong (and often is) but it usually ends up working well with a roll or two.
I hear you on the timing. I have months when I am barely 50% correct in the first few weeks after I open a trade and it still works out 10 or 11 months a year. If you keep playing with anything gold I promise you will refine your rolling skills. It consistently works with those stocks. Rolling the strike in your desired direction and collecting a little more money will lesson the pain of missing the direction. Doesn't work with more predictable stocks. If they run 15% in the wrong direction you might as well just eat it. Enter wheel phase and sell a CC or eat it. (which I am not quick to do if it's real money). I swung and missed bad on CMI. I'll be making a decision today.
Another thing to consider if you end up rolling GOLD options..... Don't go out too far on the date if you are faced with a roll. First of all you have to wait until they are almost expired or you are buying back premium if they are anywhere close to the money. That has been true 100% of the time for a year. If you get the extrinsic down to pennies you can roll forward a couple weeks and collect more money, maybe move the strike a little too. If you start selling metal options months out you are about guaranteed the price of the underlying swings up and down multiple times during the contract. You are just tying up capital that could be making better income. I prefer to be at decision point every few weeks. Roll it again or just accept assignment if you think you are the top or bottom of the short-term range. Definitely not proclaiming PM expertise. I actually avoided them for decades. Just my experience with about 50 contracts over the past year. It's been fairly easy to dance my way out of fairly big moves in gold spot prices. Gold spot hasn't moved 10% since my first trade but income month after month. Sideways works just fine.