09-28-2021, 10:11 PM
I do employ a few options a month in a similar manner and it does work out most of the time. The average option income is enhanced. For most of my positions I have to be very OK with owning them. I put myself at risk of owning some volatile stocks and perhaps I don't like the assignment price as much as I did when I placed the trade. I'll deal with it because it's a minority position.. But I trade lot of capital at times. Corrections happen and I am not going to be OK with suddenly owning $300k worth of crap stocks. That is how it would end eventually. Recently is a decent example. Forced into a bit more oil than I liked but my thesis was reasonable. If this dip continues I am overweight BMY, HRL, solar and UTEs. I won't stress it because I know the companies well. I can sell some calls and correct the allocations.