Originally Posted by
LandGreen2
im doing the same thing! Trying to start trading in a self directed IRA. Question for the pros:
If simply holding stocks for long term (such as Motley Fool stock Advisor picks), do you still do covered calls on your long stocks, or cash secured puts if trying to get buy a dip in price? If so, 30-45 days out? When picking the strike do you try to maximize the premium (one strike OTM) or put the strike far enough OTM to make likelihood of excercising less likely, but still collecting a little premium?. Sorry if this makes no sense I’m still learning here...!
Yesterday I sold some puts that close this week, (in two days) and some that sell next Friday. I also have some longer term stuff (Feb 19). I do a lot of trading though. In 2020 I will wind up with somewhere near 1700 trades. I think I said in another post, but I TRY to make an average of $75/week for every $20,000 that I am leveraging, whether or not it is thru puts or calls. Some days you are the windshield, some days you are the bug. I am long and underwater in a position right now, but I will keep selling calls on it until it returns. If the pain goes on long enough, I will punt and move on. That's the art in all of this... Hope this helps.