I haven't really scrutinized and analyzed the article on straddles and strangles that I just posted, but now I am wondering with these 4 basic strategies(sp?) -- selling covered calls, selling puts, straddles, strangles, how can one integrate them into a good over all plan to generate consistent, relatively low risk income? Why would I write a straddle or a strangle instead of just selling calls?
Also, can you share your opinions on good stocks to do these strategies with?
I have been writing coverd calls on CSCO, QCOM, NTAP, NEWP, JDSU, JNPR, BRCM. Only because these are stocks I already own. I'm trying to be a ltbh investor, but I figure I might as well write calls while I am holding them during this dismal economic environment. I have been content writing the calls, but after finding this thread, I'm convinced that there must be some relatively simple strategies we can use to improve our returns.
I want to also thank you and the others for sharing so much of your knowledge with us newbies. Also a big thanks to those who PM'd greetings to me recently.
Thanks |
