anyone do any options trading

[hogsanity]

I picked up positions in about 8 stocks that have weekly options, and am just selling the 1st out of the money call every Monday morning. I researched and found stocks that did not have much movement, did not want to continually get called out.

[JoeyCapital]

I trade options to hedge for clients and speculatively for myself, but I don't really understand your terminology. What is it you're doing? Selling covered calls every Monday?

[ricepig]

I trade options to hedge for clients and speculatively for myself, but I don't really understand your terminology. What is it you're doing? Selling covered calls every Monday?

Yeah, I wasn't sure of his game plan either. I'll dabble in them time to time, from all sides.

[hogsanity]

I trade options to hedge for clients and speculatively for myself, but I don't really understand your terminology. What is it you're doing? Selling covered calls every Monday?

that's exactly it.

[JoeyCapital]

You trying to generate income?

How much are you able to generate in excess of treasuries (lol, I guess any income would be in excess of treasuries right now)?

It sounds like you found a few stocks that don't have a lot of upside so you can sell calls against them. Do you like the stocks long term?

The first thing that popped in my head was, if you want to invest for income, then invest for income. If you want equity like growth then buy companies that you think can grow.

If, however, you are generating solid income or you like the stocks long term then there's nothing wrong with what you are doing. Covered calls is a solid way to generate some yield on positions that you like but expect to be flat short term. I doubt it is going to generate enough income to justify being invested in companies that you don't believe in, though.

[hogsanity]

You trying to generate income?

How much are you able to generate in excess of treasuries (lol, I guess any income would be in excess of treasuries right now)?

It sounds like you found a few stocks that don't have a lot of upside so you can sell calls against them. Do you like the stocks long term?

The first thing that popped in my head was, if you want to invest for income, then invest for income. If you want equity like growth then buy companies that you think can grow.

If, however, you are generating solid income or you like the stocks long term then there's nothing wrong with what you are doing. Covered calls is a solid way to generate some yield on positions that you like but expect to be flat short term. I doubt it is going to generate enough income to justify being invested in companies that you don't believe in, though.

I like a couple of them, couple are speculative, and a couple are energy companies that are beaten up right now, but are still solid. Right now, 4 of the 6 don't have a lot of immediate upside, but I want them long term, and just did not want them laying around doing nothing when they have weekly options available. Not making huge premiums on them, but its enough every week to justify doing it.  None of them have a price over $10 per share either. 

[vandybuff]

Someone mentioned treasuries ... laugh if you wish, but 30 yr T trading very near 3.00 might be a good buy and / or long option.  More bluntly put, ''do you see any economic vitality coming -- me neither".

[JoeyCapital]

Someone mentioned treasuries ... laugh if you wish, but 30 yr T trading very near 3.00 might be a good buy and / or long option.  More bluntly put, ''do you see any economic vitality coming -- me neither".

Like the dude from Taken said, "good luck".

I wouldn't want to be long anything with that type of duration. Rates are gonna go up. Either because the fed does its job or because people start demanding more yield to hold our debt.

[vandybuff]

Like the dude from Taken said, "good luck".

I wouldn't want to be long anything with that type of duration. Rates are gonna go up. Either because the fed does its job or because people start demanding more yield to hold our debt.

yes, 'someday' they will .... but imo short term is continued soft demand ... and these are so liquid if I can make an annualized 8 percent (on the bonds only) over the next month or two I am happy .... I am too dumb to do the big stuff properly. 

Oh, I had to come back and modify because I missed your fantastic joke ... that being 'because the fed does its job'.   A governmental agency doing their job .... thanks for the hearty laugh! 

[JoeyCapital]

yes, 'someday' they will .... but imo short term is continued soft demand ... and these are so liquid if I can make an annualized 8 percent (on the bonds only) over the next month or two I am happy .... I am too dumb to do the big stuff properly. 

Oh, I had to come back and modify because I missed your fantastic joke ... that being 'because the fed does its job'.   A governmental agency doing their job .... thanks for the hearty laugh!

You very well may knock it outta the park, but that kinda feels like picking up pennies in front of a bulldozer (or truck, or whatever that stupid cliche ends with).

It takes a special cat to be able to trade like that. I wish you well!

[vandybuff]

You may be correct ... we will see .... and as always, the best of success to you and everyone investing.

[hog.goblin]

I like a couple of them, couple are speculative, and a couple are energy companies that are beaten up right now, but are still solid. Right now, 4 of the 6 don't have a lot of immediate upside, but I want them long term, and just did not want them laying around doing nothing when they have weekly options available. Not making huge premiums on them, but its enough every week to justify doing it.  None of them have a price over $10 per share either. 

Good candidates for covered calls (Overwriting) are large-cap stocks with exchange-traded options that provide attractive premium income.

I fear you have some positions that could have some excess risk for getting premium income through covered call strategies.  Keep in mind this premium income is short-term capital gains (and not tax efficient).

[BENTON PIGGEE]

I sell a cash-secured put on SPY, then when it gets exercised, I sell a covered call, doing it over and over, 2% return on average with next month's expiration, in a tax-deferred account. I also get a dividend. I use MACD and Stochastics to help decide when to buy and sell. Any thoughts/advice?