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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 bad based on 2020, but if you look at pre-COVID it might be. I know you're trying to minimize theta decay on the long contract, but you might...

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 cash secured puts I don't really care, but my preference is to roll the short option. Mostly what I think about is where that leaves me on Monday. Is...

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 that question without understanding my strategy for covered combos. I trade as a continuous strategy exclusively on the SPY. I do spreads (primarily...

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. The time premium is the price of the option over and above the intrinsic value. If you're trying to make your money by selling premium, that means...

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 carry on SPY LEAPs is about 650 basis points last time I looked.

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 written, you'd be creating a synthetic stock position. It'd be simpler and cheaper to just by the stock. Put writing (not naked put writing) will...