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

[fenders53]

(11-30-2020, 04:12 PM)NilesMike Wrote:

(11-27-2020, 09:01 PM)fenders53 Wrote: Added HRL to my rotation for parking the conservative part of my cash in puts sales.  That is about the cleanest balance sheet I've ever seen in a slow growing stock.  They should let their hair down and acquire something next time the market dips.

I was trading a lot of KO and T puts but KO is up and I am going to expose less new money to T.  I've been tempting fate selling TLT puts for months on end.  Going to stop that until I feel a little more comfortable I think I know where interest rates are headed in 2021.

Sold KO 53.5 24DEC Calls for .84 (on 11/25), bought back today for .36

RE interest rates: where can they really go? Can't go much lower and if they bump it up the market will stall. They won't change much IMO and I don't give it much concern.

I understand what you are saying as far as the general market goes, but if 10-20yr yields run up half a point on a recovery or fiscal policy I'll get stung with TLT puts going forward. The yield still won't be good if I am forced long, but I'll get stung on puts with a bad entry.  It's not good risk reward to get beat 10% on the entry if the yield is 2% for a long-term hold. I sold TLT puts for months and months with zero assignments.  Had I not slowed down that streak would have ended already.  It was a nice hedge, but lately it isn't.  I suspect the yield curve will steepen in 2021.  Once it settles I can go back to business because a rate drop is my friend. It's just not as easy as selling a KO put.