ed,
I thought about selling puts on my DELL, AOL, TYC. In fact I did sell TYC Apr. put which will be worthless. As for DELL, I want it to be called away for diversification. AOL is overbought. Sure enough, it's down much today.
I agree with you on this strategy. After selling cc, if the underlying stock breaks out on the upside, I may sell put on the same strike and expiration. This way, I can still catch about 1/3 of premium of the original cc.
However, this time, realizing my DELL and AOL will be called away in Apr., I used the anticipated capacity to write Apr. puts on LU (65), CNXT (70), and gblx (40). Got the idea on gblx from you and Jill. If I get those stocks, it serves the purpose of diversifying my port. I will then write cc on them in April. I have to say I love the volatility. |
