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.
How Profitable Is Writing Options
- Thread starter ironchef
- Start date
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.
I thought the discussion was selling options, puts and calls, covered and naked...
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?
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.
More food for thought: http://www.ruf.rice.edu/~yxing/straddle_201305_03.pdf