Originally Posted by
Big E 757
First of all, no one WANTS to fly a 737. (Signed, Happy Airbus Pilot). The rest of your post is very true though. I don’t think Fidelity allows the kinds of options trades that can decimate an account though. Covered calls....I know some use the Snider method with success. I’ve only traded covered calls in my account on stocks I was ready to sell. Instead of flat out selling a stock, I’d sell covered calls against it until the options got exercised and then I’d get a better price for the stock than selling with a limit order, or make some extra premium while I waited. I’m interested to see about cash secured puts. If those are available to trade, I would only use that to buy stock I wanted to own anyway, or make some premium in the mean time while I waited for the stock to pull back.
this is what I was thinking of doing in IRA or 401. Seems like a low threat way of making a little extra if you are buying or selling regardless.
BTW...This seems to be exactly what Snider method does once a month. Huge thread on chit chat about SM on the investing sub forum