Kerim suggested this might be a good idea. By now most of you are probably aware that NilesMike and I employ an income strategy that involves selling covered puts and calls. Done correctly it can be very lucrative. We are still DGI investors. I truly feel like I am intruding on the "What did you buy today thread" with my put sale posts. I can't help but think many of you believe we are just gamblers. It isn't so. I first explored this idea when I learned Warren Buffet frequently employs this strategy at Berkshire when entering positions. But this isn't a strategy thread so much. If anyone wants to share a highly speculative option purchase, please share the risk of your trade as this is not a gambling forum.
I have sold about 135 options since SEP 18, 44 sells in 2019 already. Most of mine expired worthless yet again last week so I'll be active here starting this week as I have a lot of cash to deploy. I'll post up a sentence or two explaining why I sold an option, and my assessment of the risk of my trade. I do hope others will ask questions as we go. I'm not a pro for sure, but I have done this through horrendous up and down months and feel comfortable I can adequately assess risk reward. Hopefully this makes more sense as we proceed. Let the market pullback some and you'll see me attack this strategy with a vengeance.
Please post this thread often NilesMike, for better or worse. I will share my mistakes as well as my victories. This is about sharing and growing knowledge. I enjoy the socialization but I'm not here to impress anyone. I am going to build my DGI port with our shared strategies. Everyone knows the market is overbought right now. It was stupid easy after DEC pullback but it doesn't get much harder than now. Let's show them that it's turns out OK, and less risky even when it isn't easy, as long as you keep your head.
I truly do hope people challenge my decisions so I can defend them. Transparency is good. Bragging after the fact not so much. I welcome challenges from others that are not even playing with their own money yet. Let's see how this goes.
I have sold about 135 options since SEP 18, 44 sells in 2019 already. Most of mine expired worthless yet again last week so I'll be active here starting this week as I have a lot of cash to deploy. I'll post up a sentence or two explaining why I sold an option, and my assessment of the risk of my trade. I do hope others will ask questions as we go. I'm not a pro for sure, but I have done this through horrendous up and down months and feel comfortable I can adequately assess risk reward. Hopefully this makes more sense as we proceed. Let the market pullback some and you'll see me attack this strategy with a vengeance.
Please post this thread often NilesMike, for better or worse. I will share my mistakes as well as my victories. This is about sharing and growing knowledge. I enjoy the socialization but I'm not here to impress anyone. I am going to build my DGI port with our shared strategies. Everyone knows the market is overbought right now. It was stupid easy after DEC pullback but it doesn't get much harder than now. Let's show them that it's turns out OK, and less risky even when it isn't easy, as long as you keep your head.
I truly do hope people challenge my decisions so I can defend them. Transparency is good. Bragging after the fact not so much. I welcome challenges from others that are not even playing with their own money yet. Let's see how this goes.