I have yet to write any June calls, only because the premiums on the 10 stocks I own are so very low. I have found that when the premiums are this low it is better to simply wait until the individual implied vol. are better. I can actually reach my cash objective by writing 4 to 6 times a year so I try to never be in a hurry or anxious to trade.
The mistake I made on CREE last month.was to be greedy and accepting too low a premium. (UF, I may get it back around 28 this month.)
In so far as being intimidated by the MM's and Hedges it simply causes me to be careful to do all of the homework e.g. check premium %, Historical vol.,Implied vol., Option calculator, spreads, open interest, and volume of the option.
If I have any advantage over the professionals it is that I do not have to trade at any one point and I follow the market very carefully on only the 10 stocks I have and the 10 or so I watch very carefully. All are stocks I have been interested in for years and in some cases over a decade.
I know how they trade based on news, market conditions, Beta, earnings, warnings, and what happens in their sector.
I sell when the stock is basing, is in a trading range, or is in a mild up or down trend. I also try to sell on the prices approaching the upper Bollinger Band.
I may not get any June or Julys this cycle and will be going on a month or more long RV trip in mid-June so I may step aside until the Aug cycle. |
