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Strategies & Market Trends : Option Strategies
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To: THornsby who wrote (2249)2/25/2021 2:00:06 PM
From: Hank Scorpio  Read Replies (1) of 2591
 
The risk/return payoff has always bugged me about selling premium and it really the main reason I have not gotten into it in a bigger way. I am coming around on this, however.

We definitely have different goals here. My primary goal from a short premium strategy is consistent income generation. This does accomplish that, but the risks are definitely there. Really, the reason I started was almost out of spite. I just didn't believe that it would make money consistently and I had to just run an experiment. I've learned a lot these last 5 months or so.

In another month I will likely have to abandon the system, however, as the landscaping season will start up again and I won't be able to babysit. I have considered moving to monthly expirations but I'm going to look more closely at hedged positions first.

Thanks for the comments.
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