Dividends , The Wheel --Cash secured Puts and Covered Call writting

[Porgie Tirebiter]

I don't believe he's talking about flipping in and out of individual stocks. He's talking about selling options premium. It's actually a very safe and conservative way to boost investment yield.

A sell signal is a spike in implied volatility, which is generally associated with a down market. What you are essentially doing is acting as a counterparty to the "slobbering gambling addicts" who are abusing options by using them to amplify risk when making directional bets on the underlying security.

And don't tell me Buffett doesn't work that business. Gen Re and Geico come to mind...