Cousin Calvin

Two Citigroup Income Generating Option Strategies

Marco I am on board with your strategies, I too have sold puts on C, but further out than August.
The problem I have with your thinking here is that you are writing about an income strategy.
In my way of thinking, when you sell calls and puts you have only opened a position. You do not generate any "income" until the position is closed or traded, premiums are kept and the original capital is intact, (in the case of buy/write). Rolling calls and puts forward is a pull back from the original position, at a loss, and living to fight another day. Nothing wrong about that escape hatch, I have used it more than once but it is not generating income.

FAS and FAZ: A Short-Seller's Dream?

Ultra, just an observation, watch out for Implied Volatility on any any Put you might buy.
I thought I played FAZ just right by buying puts. FAZ did drop but so did the option. Stupid me, my loss. Volatility was the culprit. With high volatility sometimes calls and puts can go up and down together, which is the opposite of what you are looking for.


On Jun 13 04:22 PM ultrashorts wrote:

> Another great way to play this is to buy puts on FAS or FAZ. I'm
> holding some FAS Oct 9 puts myself to profit off any potential down
> leg in financials as well as the inherent decay of the leveraged
> ETF.