My first trade!

[cdcaveman]

This would work in a world where volatility remained constant... IMO you need to start back reading more about options....

 

[TSLexi]

Quote from cdcaveman:

This would work in a world where volatility remained constant... IMO you need to start back reading more about options....

Elaborate, please. I'd write puts when IV is low, and if I get assigned, I'll wait for IV to rise, at which point I'll write calls.

 

[Took2Summit]

Quote from TSLexi:

Elaborate, please. I'd write puts when IV is low, and if I get assigned, I'll wait for IV to rise, at which point I'll write calls.

In theory you need to actually do the opposite if you want to do this. Write puts in high IV (stock down, 52WL, etc) write calls in low IV (stock up, 52WH, etc)

writing puts in low IV would mean (generally) a rising market, stocks at highs (correction around the corner). and then writing calls in high IV would mean market has already corrected and you are capping your gains on the upside.