09-26-2013, 10:21 PM
I do both covered calls and cash secured puts. Currently the only covered call that I have open is 2 on WIN for Jan at $9. WIN is a speculative play/yield chaser. Bought 200 shares for $8.50 a month back and then sold the call at $9. This way I would make a little money on the shares and receive 2 dividends.
I only sell covered calls on speculative plays or on positions that I think are overvalued. I sell cash secured puts on positions that I want to have and would love to buy, but at a little cheaper price. This is probably one of the more conservative option trading strategies, but it lets me sleep at night. Also much less work with this strategy. And I don't use margin when trading options. Too risky in my book.
I only sell covered calls on speculative plays or on positions that I think are overvalued. I sell cash secured puts on positions that I want to have and would love to buy, but at a little cheaper price. This is probably one of the more conservative option trading strategies, but it lets me sleep at night. Also much less work with this strategy. And I don't use margin when trading options. Too risky in my book.