dasherHampton
Platinum Member
- Jan 19, 2018
- 2,543
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market is a bit shit, but i've started writing covered calls against some very large positions that I intend to hold indefinitely. starting with monthlies with low premium and low risk to get my hands dirty
That's a great way to get started on options. I always ask myself "at what price level would I sell this stock?" and go as far out as I need to to get a decent premium at that price.
The furthest out I've ever gone is like 15 months, and only because the calls were going for a ridiculous amount. I usually go about 3-6 months out. Seems to be the best balance of risk/reward.
The downside is selling/trading options right now is that the retailers seem to be losing their abandon for buying puts/calls. It seems much harder to find those great 40-50% annual return type deals right now, and believe me - I spend hours every day looking. Hopefully they start to throw money back into the market soon lol.