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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Robohogs who wrote (165963)3/21/2012 1:39:57 PM
From: Salt'n'Peppa1 Recommendation  Read Replies (2) of 206131
 
Robo, that article only regurgitated the blatantly obvious. Put writing is a bullish strategy. Markets have been bullish. 'nuf said.

If the author had any sense of what he wrote, he could have said that a put-writing strategy, when done carefully, will be highly successful in a bullish market, a flat market and even a slightly negative market (where the market drop does not exceed the option premium).

I am trading in both directions most of the time, with open put-writes and call-writes.
My particular approach is to trade with the general market direction - more puts than calls in a bullish environment and more calls than puts in a bearish environment.
My approach is also very stock selective and relatively conservative. I tend not to write the front month, focusing on lower premium and lower perceived risk.

I do agree with him that naked put writing is no riskier than covered calls when applied sensibly and watched closely.

S&P
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