selling a spy option

SanMiguel said:
As the market goes down, which strike do you intend to sell?
If you get assigned at 290 and then you sell a call at 300, you're good for that month but what if your shares reduce to 250.
You can sell 300 again but it won't be worth as much.
Then market goes down to 230, what do you sell.
If you sell close to the underlying then you could be called away, locking in the loss on your shares.
That or you have to roll up each time it gets close.
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Yes, that's the issue. The option selling strategy works best when the underlying doesn't really move so you can keep selling the same strikes month after month. In reality, it does move. Options are not a stand-alone trading strategy. They are tools to exploit an expected move.
 
ET180 said:
Yes, that's the issue. The option selling strategy works best when the underlying doesn't really move so you can keep selling the same strikes month after month. In reality, it does move. Options are not a stand-alone trading strategy. They are tools to exploit an expected move.
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That or if you don't mind selling more puts. But then you're basically averaging down in a dropping market.
 
never2old said:
in theory anything is possible, its only when real money is on the line does it mean anything.

take if from me a 73 year old that's weathered the storms of 50+ years of investing in many things - 'past performance is not indicative of future results'

you've seen the responses, so, if you have convinced yourself its a good trade, go do it, you are in the drivers seat.

as I posted up thread, paper trade this one week at a time for 4 weeks & if you are still convinced 'put your money to it'

if you have 25 years to buy & hold you'll likely be OK.
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75 years and 25 years ? I’ll be ok within 3 years look back 70 years
 
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