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Strategies & Market Trends : Option Strategies -- Ignore unavailable to you. Want to Upgrade?

To: Hank Scorpio who wrote (2251)	2/25/2021 4:09:54 PM
From: THornsby	1 Recommendation Recommended By Thehammer Respond to of 2591

> My primary goal from a short premium strategy is consistent income generation. My goal with these hedged positions is also income. I am willing to let others get the big gains and on the other side, incur the large losses. I'm playing in the middle, hoping that my selection and risk management outweighs my picks that go south. However, our approaches are quite different. > I've learned a lot these last 5 months or so. Another old market cliche`: Don't confuse brains with a bull market. One of the advantages of hedged positions like spreads is that if you get whacked, the long leg appreciates. You still lose overall but you can lower cost basis if the long leg gets ITM. A roll lowers your break even price if/when a recovery occurs. There are no sure fire ways to beat the market other than riskless arbitrage (conversions, reversals, etc.). But that's small potatoes if you can find them and you can't get size as retail.