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Non-Tech : Kirk's Market Thoughts
COHR 185.83+5.8%Dec 19 9:30 AM EST
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To: Kirk © who wrote (15664)3/28/2023 10:22:29 AM
From: robert b furman2 Recommendations

Recommended By
Kirk ©
sixty2nds

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Good Morning Kirk,

Selling puts when the net purchase price if assigned satisfies the needed dividend yield always makes me feel stupid when the market has a sell off and the fear premium really swells the put premium. I have really tried to wait for the bottomspotter that Joan developed for selling of puts.
Admittedly I get anxious and fire off a sell for a tracking position. Then double down on a lower priced strike for some volume in put sales. If things go right that strike and then the one below it can really help in buying the top strike price if assigned.

The time when bottom spotter is activated is always a good time to do some selling. The very best time is when the put premium swells and the spread between bid /ask also widens greatly.

All things that endorse the idea of being patiently greedy. <smile>

I never really get there with the average of the multiple scale ins.

The one saving grace with selling puts out in time, is the benefit that time decay continuously works in one's favor. As time decay diminishes premium it tends to make me look smarter, but in reality I know it could surely have been traded better.

If we get a real strong run up, I'll buy to close, with the hope of double tripping the same contract. I did that only once in 2022.

The one real rule to never vary from is: NEVER sell a put on a stock you do NOT WANT TO OWN. That takes all of the fear of the trade out of it.

I've become so comfortable with that kind of trade, etf's and index derivatives drive me crazy with swings, to the point I don't like to do them.

Time decay and dividend revenue streams now equal my retirement plan. I have sold some calls, but if I have a stock on a fast price advance, I hate to have to hold it the stock while waiting for the call to expire.

So far I've done very little covered call selling to buttress my income. Most of the time buying a stock via assignment has resulted in a below market acquisition price and I like to keep due to the high yield associated with the dividend.

Bob
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