Hey Freemarkets, I like as sure as things as I can make them. I have made a ton of money over the last few years with spread trading. But lately with the way the market moves with the increased volitility, holding a spread is becoming dangerous because your potential loss is multiplied by your hopefull credit. For example, on an S&P option spread, you might get a credit of $500 for 10 bull puts, but risk $9500 for it. If the S&P craters in a week like it has, you can bail for a small loss. But to make back that loss with a spread itself, it might take 2 months. If you're doing a condor by buying the bear call, that will make up for the other side's loss, but you need to get that same credit amount which has been hard to do.
So, what I've been doing with the majority of my money is just simple covered calls with the e-mini trading on the side. I'll buy typically AAPL (because the options are so expensive) and sell 2 or 3 strikes in the money. If AAPL is say $65, I'll buy 2000 shares and sell 20 $60 calls against it for say $6 each. I'm almost guaranteed to have the stock called away at $60, but I net a $1 profit per share on them.
It's as close to a no lose situation as I can find in this crazy market.
I have a large base position in MRVL which I love and think is going to double or even possibly triple come Nov through next year that I roll a collar on each month. I have a few other stocks that I've done this on for the last few years that I now own free because of all the profits on the puts and shorted calls.
I really feel safe with covered calls because of the obvious reasons.
When the market settles down and the VXN and VIX fall back to 15 or less, I'll then probably go back to spreads because of the risk/reward.
AI
Market Data 
Markets 
