what am I missing about writing options?

[systematictrader]

options both long and short have unfavorable distributions. You ideally want to build strategies that build portfolios that take these skewed distributions and make them a more normal with some positive skewness.

Can you please tell me more bout this with an example if u dont mind

 

[systematictrader]

You gotta have a big enough list of stock their is always a pull back somewhere

Very true
Wfc lagged big time after the market so did wba and pfe right now and many ithers

 

[systematictrader]

Well, most stocks are correlated to the market. Some just not volatile enough to bother with. Some are too volatile. Some are too expensive for my account size. So that leaves me with pretty short list of stocks. But I actually prefer to deal with a few stocks that I think I have a "feel" for. Selling premium is just a way to get some "income" while the market is dull.

Have you hward of verticals ? You can touch any stock with that no matter what the price

 

[HappyDays]

A question I have for those who sell premium for a living...... It seems with cash covered puts you know your risk it isn't really infinite. The danger more seems to be in selling naked calls. If it keeps going parabolic you have no more risk provided you had the capital to buy a hundred shares. Granted there is whipsaw risk that it comes back and forth at the strike but you could just keep taking the hedge on and taking it off. What am I missing?

There's no need for more capital to buy shares.
As the sold option goes ITM, go deeper ITM, and buy the option 3-4 strikes below at about 80 delta or so.

 

[cesfx]

There's no need for more capital to buy shares.
As the sold option goes ITM, go deeper ITM, and buy the option 3-4 strikes below at about 80 delta or so.

Sort of a double down on a position going bad? I think you might just lock in a loss doint that.
It will cost more than the sell call itm value, why don't just buy the short back and reduce risk exposure?

 

[HappyDays]

Sort of a double down on a position going bad? I think you might just lock in a loss doint that.
It will cost more than the sell call itm value, why don't just buy the short back and reduce risk exposure?

for his own reasons, he wants to buy shares and continue holding the position.
I suggested an alternative to buying shares.