Selling options

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#1 Tue, Dec 31, 2019 - 10:41pm
Joined: Oct 6, 2019

Selling options

I am relatively new to this site and could not find a dedicated options thread, so I am starting one to see if there is any interest. I realize that most people here are probably stackers, but why not make some extra fiat from our knowledge of the PM markets?

I primarily trade ETFs like GDXJ, GDX, GLD and SLV due to their high volume and liquidity. I only sell options and never buy them (except in a spread) because I want to profit from time decay. When I trade in my IRA, I trade cash-secured puts and covered calls. However, in my taxable accounts, I also trade vertical spreads (bull-put or bear-call credit spreads).

In our current market environment, selling cash-secured puts on the above securities as a bullish strategy is my favorite approach because the seasonal pattern for gold is up through the end of February. However, PMs and mining stocks are overbought right now, so I also have some short-term covered calls in place as I wait for a possible pull-back before selling any more puts.

If anyone would like to discuss option strategies in more detail, please post.

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