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Hey Fly, is there any reason why someone would not just sell covered calls every month, right at the nearest strike price, as a pretty sustainable source of “stock rent”? Thats what I have been doing since beginning of january, and sure, youre not immune to the downside, but the premiums help a lot.
Danny:
I know people that live and die by writing calls. I hate them because it ties me to the stock.
I rather have the flexibility of being able to sell at will or take advantage of full upside.
Nonetheless, if you have time to micromanage, it can give you another 20% per annum.
Never punish yourself for taking a profit.
Danny — I do it in my IRA account, because that’s where I have my more “long term” positions which I like to milk. My trading accounts are just pure stock or option plays.
Not sure why the Fly doesn’t like playing options.