SPY vs QQQ - which is better for writing covered call?

Discussion in 'Options' started by rabbitsfoot, Apr 17, 2019.

  1. That's should be fine I guess. If my goal is to buy and hold it, then writing high probability calls is just getting me a little something to reduce my cost basis.
     
    #11     Apr 18, 2019
  2. I'd like to respectfully clarify that I'm looking for suggestions over SPY and QQQs, not for learning why covered calls is bad.
     
    #12     Apr 18, 2019
  3. ironchef

    ironchef

    I am not telling you it is bad. I am saying if you play the game long enough, it is hard to come out ahead if you do it mechanically.

    To play it to win in a buy-write, you need to have a correct opinion of the underlying. If your opinion is correct, the high IV instrument will net you a higher return in general.

    I am done here. Good luck.
     
    #13     Apr 18, 2019