tag:blogger.com,1999:blog-6587699706949333863.post6545952382134274622..comments2024-03-27T23:39:33.499-05:00Comments on Passive Income Pursuit: Recent Option TransactionsPassive Income Pursuithttp://www.blogger.com/profile/13947101854482544346noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-6587699706949333863.post-78418943457132050692016-12-29T12:08:45.582-06:002016-12-29T12:08:45.582-06:00JC, have you ever looked into selling puts and cal...JC, have you ever looked into selling puts and calls on other asset classes besides equities? <br /><br />One tactic I like to use is selling puts and calls on silver and gold ETFs (SLV and GLD, respectively). You keep writing puts at strike prices below the current price, and then when you eventually get assigned the shares, you start writing calls at higher strike prices until they're called away from you, and then you start over. <br /><br />This lets you generate income from precious metals, and they're not well-correlated with equities (especially gold), so it provides for more diversification. <br /><br />Lyn Aldenhttps://www.lynalden.comnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-8644948642734803392016-12-29T05:24:16.893-06:002016-12-29T05:24:16.893-06:00Anon,
Ideally yes I'd like to just roll the ...Anon, <br /><br />Ideally yes I'd like to just roll the call to be able to cut down on the commission costs. However, in the case of HAL the energy sector is still quite volatile so I typically look to sell the call/open the position when oil or HAL has a decent run up under the premise that "what goes up, must come down". It's a bit of a gut feel kind of thing but I have to balance capturing as much option premium as possible while also not limiting my upside too drastically.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-49464490274986234422016-12-29T05:21:46.730-06:002016-12-29T05:21:46.730-06:00Ferdi,
In my limited use of spreads they are goo...Ferdi, <br /><br />In my limited use of spreads they are good in theory, but commissions can easily make them unprofitable. So far calls/puts have been the best for me although I'm thinking of adding covered strangles to the mix as well. <br /><br />Those $0.05 commissions that I'm paying are really exchange fees I guess. I was able to get 500 free trades for my Rollover IRA so I'm definitely taking advantage of that. Once those are up then I'll be considering moving my IRA to another broker or using my option activity as leverage to get them to reduce my commission rates so options continue to make sense after commissions. We'll see how it goes.<br /><br />Thanks for stopping by!Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-54645659691502484582016-12-27T11:46:37.790-06:002016-12-27T11:46:37.790-06:00JC -- On your HAL option trade have you considered...JC -- On your HAL option trade have you considered doing a rollout trade, since you are considering writing another HAL covered call in the future? That way you could save a little in commissions.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-6587699706949333863.post-34330191027926925612016-12-27T09:16:11.237-06:002016-12-27T09:16:11.237-06:00Hi, JC -- really good to see your trades and to le...Hi, JC -- really good to see your trades and to learn about your spread trades. For now, I'm going to stick to the basics because I still feel pretty much like a beginner as far as options trading goes. Where are you doing your options trades? I notice you're paying just $0.05 in commissions. That's certainly helps a lot!FerdiS, DivGrohttps://www.blogger.com/profile/07330193431527796718noreply@blogger.com