I have 2 option strategies that I like the most and then a third that I don't have enough positions built up to think about at the time.
1. I like selling put options since you can essentially set your entry price and get paid a premium to wait for the price to come to you. The downside to selling puts is that you could have possibly bought in at a lower price should the markets make a big downward move.
2. Buying call options in the form of LEAPs. Long dated call options. The plus for this is that you can get the right to buy the shares at a predetermined price at some point in the future. I like this whenever I feel that long term the stock price should return to the value that I expect, higher than the strike price + premium. The reason I prefer LEAPs to shorter duration calls is that you get more time for things to play out. The downside is that you can be left with nothing to show for it if the stock price takes longer to materialize or if other factors change.
3. Selling call options. I haven't really dabbled too much into these mainly because you have to have significant positions built up. At least 100 shares per contract that you want to sell. What I like about them is that you can get essentially a second dividend on the shares in the form of the premium. This premium can drastically increase the compounding of your capital. I would prefer to sell shorter duration call options, 3 months or less. The reason I prefer to sell shorter duration calls is because stocks don't typically move as far and as fast as they have the first 3 months of this year. The obvious downside is that you're risking losing the shares should the option be expired.
I'll be posting more information on the calculations that I go through for each option strategy. A lot of people hear about options and are scared away but I feel they offer an opportunity to get the entry price you want or to sell at a given price that you feel the shares are overvalued at. They can increase the compounding which as Albert Einstein is quoted as saying is "The most powerful force in the universe."