Hi Toofuzzy, I'm not suggesting selling options on all of a position. Also, if the market is in a steep decline the odds are that I will not be in a AIM directed position to sell anything. I'd only be able to sell a call on a portion of what I have to continue generating cash.
Also, selling a put when the market is on the way down can make sense, especially if you are using a delayed buy, as you will get in closer to the bottom. Though different than Orcroft's buying after the second uptick it still would put you in a better position for the next bull market swing by reducing your average cost per share, plus generating some cash, always nice. Doing this helps make your next sell point sooner.
This has been a great discussion. Let's keep it going as I'm learning a lot.
Best,
Allen
