I completely agree. Though I prefer to do it as a diagonal, but only go out a couple of weeks longer with the long call. It's smoother ride.
By going out so long on the long call you're taking on a lot of vega risk, especially when buying it going into earnings. The IV doesn't look too...
I think your approach is pretty sound, and I share your concerns. I find markets like this more stressful than a lot of bear markets.
I'll try to address each of your questions. I'll try to address each of your questions. Do I try to avoid assignment? With covered calls and...
I didn't think you were, and didn't mean to leave the impression that I did. I'm happy to give pointers. Position Sizing: It's hard to answer...
An option's price is split into two parts; the intrinsic value and the time premium. The intrinsic value is the amount the option is in the money....
Sure.
I don't know about that. I've been selling premium since 1984, and now options trading pays the bills. I understand what you're saying though. The...
True. The original poster's question was in reference to a cash secured put.
Ditto. If you want to capture the price improvement, buying the call gives you gives you a good return for the risk. And as a previous poster has...
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