Poet,
Let's just say I had more paper wealth a year ago. I've been selling calls, and doing some buy/writes, which has generated some cash. But overall, I'm certainly down, because my core strategy is still LTB&H. One problem with selling CC is that as the stock goes down, you can still get about a 5% premium, but that 5% in absolute dollars goes down with the stock price.
I have a question about selling puts v. buy/writes, for anyone on the thread. A similar strategy, intended to collect premium. Obviously buy/writes require more cash than selling puts. But there are repair strategies with buy/write, if the underlying equity goes down, you can buy back the cheaper call and sell a lower strike. Assuming the stock doesn't go down more than ~5% a month, you can at least break even. If you sell puts, and the market goes against you, I can't visualize an effective repair strategy, other than assignment and then selling calls. Am I missing something?
John |
