In IRA's I'll do CSP's usually for less than 60 day duration. Goal is 15-24% annualized yield and not be assigned. Always writing OTM PUTs. Will re-purchase, roll or be assigned depending on return profiles available on Options Friday. Plan to convert assigned position to a CC.
In taxable account I do CSP's for lesser return (12-20% AY) , but will leverage my cash. Currently just over 3x leveraged.
10 expired , 4 closed PUTs so far this year with no losses. 8 open with 1 OTM, Zero assigned. That may change as I have 1 May PUT that is now ITM. Friday is a long way away. I'll see what happens this week.
John
--- In ConservativeOptionStrategies@yahoogroups.com, "wavemechanic" <olesmithy@...> wrote:
>
> Probably do as many (maybe more) CSPs as DLSs. Try not to be assigned (roll, pray, etc.) but if I am then subsequent actions depend on market/stock analysis, resulting in the usual range of possibilities (CC, long, sell) but aimed at relatively short term positions (sorta like not buying green bananas if your hair is grey).
>
> Bill
> ----- Original Message -----
> From: joe & leigh
> To: ConservativeOptionStrategies@yahoogroups.com
> Sent: May 17, 2010 1:01 PM
> Subject: [ConservativeOptionStrategies] short puts
>
>
> i would love to hear from members how they trade short puts.......last 2 years been doing more of those than dls with similar results.....positive is it requires less monitoring and work.....i do have how i have been doing it on the file section
>
> would love to hear how others use short puts for an income strategy especially do they adjust or love to be assigned and follow with covered calls.....especially would like to hear how people use the most important facet of trading....money management.....drjoe
>
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