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

[fenders53]

(12-04-2020, 03:41 PM)NilesMike Wrote: Just sold out the 55C Jan15 on KO for $.91
This is how we do the Stock, put, call, dividend dance on a boring stock. LOL

LOL Mike, we wear those boring stocks out. Sometimes I fall asleep at the keyboard but you can squeeze some nice return out of these.  I guess they call it "wheel trading" now.  They do on youtube anyway.  Sometimes I can make them cut me an income check pretty much weekly for months on end.  Most of mine finally ran up quick and I have calls sold in the money.  So the fun is over on those for awhile.  I just won't chase them very high.

[NilesMike]

Time to (make the donuts) close out calls today.

[fenders53]

LOL, a lot of my options expired Friday so I have plans today as well.

[NilesMike]

Did some bookkeeping this morning, one tranche "T" launched in June for strictly put/call selling...5 calls sold, 1 put sold, 2 dividends collected. 14.6% return since June.

The dance IS worth it.

[fenders53]

(12-24-2020, 11:42 AM)NilesMike Wrote: Did some bookkeeping this morning, one tranche "T" launched in June for strictly put/call selling...5 calls sold, 1 put sold, 2 dividends collected. 14.6% return since June.

The dance IS worth it.

I have sold puts and calls on eight or so boring stocks repeatedly the past year or so and it does end up with a lowish risk and lately above S&P return if you don't mind the hassle.   I'll keep doing it.  15% return is pretty normal if you don't get impatient selling the puts.  The entry matters a lot IMO.

[NilesMike]

KO has "only" had 5% from the dance, mostly because of the price appreciation. Since end of June, total return on KO is 22.7%

[fenders53]

(12-24-2020, 01:27 PM)NilesMike Wrote: KO has "only" had 5% from the dance, mostly because of the price appreciation. Since end of June, total return on KO is 22.7%

I still play some when the boring ones run a little too high, but you got to learn when to double down or not on the bet. KO has been very good to me.  So have a bunch of other stocks trapped in range.  CVS, WBA and PFE are also easy money when they dip hard.  So is T and MO if you wait for a true dip.  Many more like them. Waiting for the real dip is the hard part.  T looks good at 30 but it isn't when it gets in a downtrend,

[NilesMike]

Sold KO 19FEB21 57.5C for .71

[fenders53]

I miss playing KO. It's been good to me this year but I don't even own and long shares at the moment. I really need to get some puts sold next week. After todays options expired cash is getting excessive again. I need to start selling a larger percentage of longer durations again.

[vbin]

Sold PLTR puts, added MO, CRSP, KRMD, AMRX, NVTA, Bought AMZN. Sold T covered calls.


Small trading position in CCL, GME, MCD, M

[pdaignau]

(12-31-2020, 09:14 PM)vbin Wrote: Sold PLTR puts.
Sold T covered calls.

Do you mind sharing details on these two (Strike price and Expiration Date)? I've been easing into conservative option play and am trying to learn. I understand selling the PLTR puts, but I can't figure out your reasoning with T. T is close to the bottom of its hi/low range, why not sell cash secured puts?

Thank you,
Paul

[fenders53]

Paul,

He will answer for himself but he already owns the T shares. He is adding income to the high dividend. If he gets forced to sell he will get some capital appreciation. To sell cash covered puts requires locking up more capital for a similar premium. Whether T is headed for 35 or 26 next is an assessment we have to make for ourselves. On stocks seemingly stuck in a narrow trading range it is not uncommon that I own shares and have both calls and puts open simultaneously. Those trades would not likely be made the same day or week, but in response to a price swing. Sometimes all options expire worthless. Add a dividend and that is good income. That was a good question though. Selling puts when a rangebound stock is getting oversold is usually good strategy.