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Been trading options for a little over 4 years now and the learning never stops. I do mostly neutral trades when volatility is high. A lot of iron condors and butterflies on a small list of mostly ETFs. I started out writing covered calls in my 401k but in an up market, you miss a lot of upside, although even small premiums are nice on top of dividends. So I started writing more puts in stocks I wouldn’t mind owning like mentioned above. There are so many great strategies in the options world, just make sure to take your time to learn and focus on just a few that work for you.
Also, if you’re going to trade options, I highly recommend TD Ameritrade as their Thinkorswim platform is pretty hard to beat. TastyWorks is good too and was started by the guy that sold Thinkorswim to TDA.
There are many times I will Sell a Calls maybe 5-9 points ahead of the stock price.... Yes, if the stock goes beyond that stroke price, you may lose the stock... Sometimes that is OK... Sell Puts and pick it up again on a pullback. Or many time I will roll the Calls farther out to keep the stock, pick up dividends and also more Option Premium on the roll...
There are several ETF's that sell covered calls on the stocks held in the ETF and distribute the premiums to the share holders as dividends. I currently hold QYLD which is currently paying >10% annually and pays monthly. As I get closer to retirement I'm slowly getting out of growth positions and looking for medium risk dividend ETFs. My plan is to turn off DRIP and use the dividend cash to live therefore no need to sell stock to take a distribution. Other ETFs in my portfolio that meet this criteria: PFF, GHY, GHYB, HYLD, ISD, NCV