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Conservative option strategies, what did you buy or sell today?
Had ADM PUT to me Friday @ $34.5 It ran up this morning so I sold 100 @ $35.52 then sold a put for 5/29 $34.50 strike for .50
What do you think, ok strategy or should I have let it possibly run more and collected the dividend?
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(05-18-2020, 09:03 AM)john Wrote: Had ADM PUT to me Friday @ $34.5 It ran up this morning so I sold 100 @ $35.52 then sold a put for 5/29 $34.50 strike for .50
What do you think, ok strategy or should I have let it possibly run more and collected the dividend?

Strategy is fine if that was what you had in mind.

I get in trouble when, I change goals in midstream. Best for me is the plan of getting in and getting out BEFORE I put the trade on, when I deviate-no gouda.
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(05-18-2020, 09:03 AM)john Wrote: Had ADM PUT to me Friday @ $34.5 It ran up this morning so I sold 100 @ $35.52 then sold a put for 5/29 $34.50 strike for .50
What do you think, ok strategy or should I have let it possibly run more and collected the dividend?

That's pretty much the inverse of what I would likely do.  The market gave you the pop to sell a covered call and the stock goes ex-Div tomorrow.  Sorry if I caused that move.  Your basic plan is to sell a put and if you get assigned sell a call right?  A lot of people do that when the numbers works out.  

I tend to sell puts when a stock has a few down days, or is actually oversold and I think it might have some support.  If I can pick an expiration before an-Ex div I do that very often.  I can possibly grab put income, a dividend and shares near a price I picked.  Maybe even a covered call soon if it's just an income play and not a core DGI holding.  

I suspect ADM is going to drift lower in the near-term so it all may work out well enough for you in the end.
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John, if you see this before market close you could undo that ADM trade if you want the Div. It look's like a better day to sell an ADM call than a put. Disclaimer.... my crystal ball may be broken in the short-term so do what you are comfortable with.
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(05-03-2020, 05:13 PM)NilesMike Wrote: I am doing something similar. I got rid of my speculative account, long story, and am going to just grind out wheel trades on quality dividend payers. Sell puts until I get the stock, then covered calls until it's called away. Rinse and repeat. Right now I'm on a CC with T. Sold the October 32 strike. If it's called away, max profit is 11.9% for 168 days. If not called it's 8% return, with capital risk. Should be able to grind out 12-15% a year on these.

My DGI portfolio is down about 11% from ATH, livable.

Closed the T-CC trade for 5% in 3 weeks.
Will wait for a nice down day to reposition.

Down about 1-2% from ATH account balances at the moment.
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(10 hours ago)NilesMike Wrote:
(05-03-2020, 05:13 PM)NilesMike Wrote: I am doing something similar. I got rid of my speculative account, long story, and am going to just grind out wheel trades on quality dividend payers. Sell puts until I get the stock, then covered calls until it's called away. Rinse and repeat. Right now I'm on a CC with T. Sold the October 32 strike. If it's called away, max profit is 11.9% for 168 days. If not called it's 8% return, with capital risk. Should be able to grind out 12-15% a year on these.

My DGI portfolio is down about 11% from ATH, livable.

Closed the T-CC trade for 5% in 3 weeks.
Will wait for a nice down day to reposition.

Down about 1-2% from ATH account balances at the moment.
That's great news with the SPY still down about 10%.  It's going to be a process for me to just match the market unless we finally get a real dip so I can deploy more cash.  I haven't shared many conservative option play details because it's boring to read, but I've done mostly what I said I would for months now.  I'm just grinding it out with a lot of puts sold on solid DGI stocks.  Very few have been exercised in this market though.  I am going very light on the covered call sales as that has failed me too often.  I still only have one account that is at a new ATH and it's nowhere near as large as my retirement account.
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