Anyone using covered puts

[crimsonghost747]

(12-02-2018, 08:57 PM)fenders53 Wrote: OK, you are good with holding the stock longer term so it's back to my put "no risk" logic.    And I don't disagree with your opinions on T.  It does tend to snap back off the dips.  And yes, short-term options are tough to sell on T.  Very few non-tech stocks under $40 offer much premium on a short option.  I won't enter a position with only 1% upside potential, but yeah if you successfully did that monthly you just beat the S&P 500 return most years.

Yes, it's extremely rare for me to touch options on stocks which I do not wish to own long term. Though in most cases 100 shares of anything is "too much" for me to buy on one go, so the goal with these options trades is to get rid of them at some point. But as I like the fundamentals behind the company, I don't have to get rid of it in a week or two. I still consider there to be risk (I've had some losses along the way) but the fact that I'm not in a hurry to sell certainly mitigates it.

I agree it's pretty hard to find sub $40 stocks with decent premiums. I have several I've used in the $50 to $70 range: WFC, DAL, WBA, RDS, OMC. But yeah below $40? Only T for the moment.