With the market up to record heights, I sold a 3050 call the expires next week. I have a good felling the market already has the drop in interest rates baked in. If the fed doesn't drop rates I will by it back tomorrow for a nice profit as I expect the market to drop. If I get assigned a short position, I will sell calls against it until it is taken away. At least that's the plan.
I won't say this is a bad move, but IMO, it is a risky one. Sounds like you have defense lined up, so good for you.
But....
The earnings for the S&P 500 companies have, for the most part, been very positive for this last reporting season. I think the rally has been somewhat tempered by speculation as to whether or not the fed will cut the prime rate.
If they don't cut, you'll get paid, no doubt. If they do, I think you may be in for a rough ride.
In closing, in times like these, most times you sell at record highs, you'll get rewarded... This may not be one of those times.
Good luck.
Im a little early but I bought the Nov 15th QQQ 194 puts
Great to have you back Mike!
Thanks for sharing.
FB and AAPL good earnings. /ES going up tonight. I have until Monday.
This may work out nicely for you. China has suddenly cast doubts on a trade deal.... Equities are "adjusting"...
I saw that. I was very surprised to see it that far down this morning.
Well, took my profit and I'm out. Kept 66% of the premium I collected.
Congrats... It worked out nicely.
Thanks