>Method 2
>1) How is selling a call a hedge, it limits your profits.
Valid point. With NUGT I sell calls every week for 5% a week profit. The money is then funneled into AIM put trading when needed (but truth be told I just like having a $2000 couple thousand bucks a week coming in so I can buy toys). Covered calls is considered a mildly bullish strategy.
>2) if the stock goes down, that is when you should SELL the put, then buy back on price increase or let expire, or the premium helps you buy the stock at a lower price.
For the bearish side, I'm not trading static puts. I'm swing trading, buying and selling them every other day using AIM. Compounding at a very high rate.
See Post #41754
Ryan
