Originally Posted by
badflaps
Y'all are talking about a market that has tripled in a short period of time, I'm not sure I would count on that kind of performance in the future, especially with the coming economy.(Diminished tax base, job loss,etc.)
Options, when traded properly, have little to do with the relative performance of the stock market. Properly built spreads make money up or down as long as the movements are within reasonable limits. Usually 1 to 2 standard deviations. I am not for selling naked options but in up markets you sell puts on down moves, down markets you sell calls in rallys. Down markets usually pay more profits.