Oh, no doubt that there are more profitable ways to do things, but I love selling as it involves just a couple of hours per month and I can sleep easy.
I sell monthly and have found that ~80% of the time they close worthless and I sell the next batch, the other ~20% I roll them out and/or down. I can be less conservative and increase the 80% towards 90+, but I have so far never had an issue rolling out - it has occasionally taken a few months ( I wrote a post on it - Disney) but we always get there in the end
Thanks for the reply!!
I agree. Since my trading is in a US IRA, I have to used defined risk trades, so I sell a put spread instead of a put.
When do you look to roll? I usually do it between 10 and 7 days out? Since I use an GTC Limit exit at 50% I'm not looking for worthless. How much of a buffer Out of the Money (OTM) do you look for when rolling as the price can still wobble a bit toward expiration?
If I need to roll I will normally wait until a few days out. I don't like to wait till expiration day
I always sell spreads now
Cheers
I posted from this week's trades. Please lend an idea on the IWM call position over there if you would?