So during this little mini-bear market, you've been writing at the money covered calls, waiting for the next dip, and buying them back, right?
I covered my calls after the first big drop, and haven't written any since then. I keep expecting the recovery to happen, because it does keep happening. I'm losing, though, because it keeps reversing again.
What's your thought process, and what are you looking at, when you decide "Okay, I'm going to sell calls now" and "Okay, I'm going to buy these calls back now." It can't be the TA we usually follow, because that's screaming "Oversold! Buy Buy Buy!" even as the prices continue to drop. What are the indicators for this sort of market (which, God willing, will be over by the time you respond to this message!)
Doug. |
