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Strategies & Market Trends : Option Strategies
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To: chris714 who wrote (1978)10/12/2018 12:03:34 PM
From: Thehammer  Read Replies (2) of 2591
 
I actually enjoy rolling- strangely enough because when I am rolling a trade it usually means that my original order did not turn out profitable however I am now "buying time" but getting paid to do it.

I only write puts on securities that I want to own usually that means adding shares to an already established position with lower cost basis.

I consider the sweet spot at expiration just under the strike price. I will still roll if it is OTM and time value is de minimus. I used to just let them expire but sometimes trying to avoid the small commission and last few pennies of premium turned out to be penny wise and pound foolish.

Sometimes it does allow you to "buy time" - actually you are selling time or insurance. Ha

My other comment is that you don't seem to worry when the trade turns out against you. You need that mentality / mindset and lack of panic to do this. Sometimes it is just a matter of weathering the storms.
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