Lions.. a VERY effective strategy to use in this environment is this.
Own shares in a large cap., high dividend paying company and trade around it.
For example.
Say you own shares in JPM which pays a nice dividend, could be any large cap high dividend paying company, and it is in an uptrend, you can buy calls and or sell puts against it.. You can also set up credit spreads.
*********LIONS.. you MUST MUST MUST MUST know how to set up and use credit spreads!
Setting up credit spreads IS EASY!
In my book A (NOT) So Random Walk On Wall Street, beginning on page 38, I walk thru and show you exactly how to set up credit spreads. LEARN CREDIT SPREADS AND USE THEM! As a trader you have to know how to use credit spreads!!!!
WHY do I need to know how to use credit spreads?
Greg, you might want to add an addendum to this message..."This strategy is for intermediate to advance level traders." You're going to get these new guys slaughtered if they try to use advanced options strategies not knowing what they are doing.
When you're delivering information you leave way too much information OUT of your messages so these new guys can't get a good understanding of what you're talking about. Don't you read these comments?
I'm not being critical, I just don't want to see these new guys get slaughtered.
a-lot of uncertainty in options when you look many months out, the bids spreads are quite large, which is probably on purpose, this will control most people speculating.