if writing covered calls same thing applies you would want to write the calls when there is a spike in volatility. if you write them in low volatility you will not make as much premium and any small blip will get you exercised. but if you had a good run and your ready to get out anyway it would make no difference.
Just a question, I didn't think you can perform a covered call on a index (spx?) without some serious cash, because you have to buy all the stocks that are members. Also you have to buy even amounts. You aren't talking about buying ES right? I'm no seller.
What is the definition of properly capitalized? Is it an absolute number or relative? How should us small retail traders define properly capitalized so we won't go under?
Very good question. I can buy SPY and sell calls on it but how do I sell covered calls on ^SPX? Perhaps buy an equivalent amount of SPY and sell SPX? But then why would I want to do that?
That is about it. The idea was to get the long term upward effect of the market, enticing it with a little call writing. End when it is hunting season (aka autumn) you protect it with deeper ITM calls.
No seasonality with market vols although VIX seems to overstate based on chart. But hard to exploit with spikes being daily event.