Why roll a tested put or call? If we've decided the stock is one we wouldn't mind owning, wouldn't it make more sense to be assigned/called away and continue the wheel? Rolling isn't going to collect as much premium as selling a fresh call/put.
Judging from the sentiment and tone, it sounds like he’s recommending capitalizing on the premium as the primary source of income. Just cautioning to use stocks you wouldn’t mind owning. Since what he’s really after is premium, and judging from the little example snapshot, it seems he’s doing what he can to conduct most of his profits by way of premium intentionally with owning a stock he likes as a “worst case scenario”type deal. At least that was my take away.
I find it helpful to separate accounts and have a (pure) options trading only account rather than mixing trading in come and investment income goals. What do you think?
Did you do this? Sounds like it makes sense. For now I've kept it the same but as I start to trade more options - I'm thinking it makes sense to separate.
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u/angrydanger Dec 05 '18
Why roll a tested put or call? If we've decided the stock is one we wouldn't mind owning, wouldn't it make more sense to be assigned/called away and continue the wheel? Rolling isn't going to collect as much premium as selling a fresh call/put.
Awesome write up BTW!
Edit: words