Broken, I agree with you. It's a good way or to buy stock at better prices or to keep the premiums. I've been selling puts since a year with success too. The only time I had to buy back with a little loss were when the Ericsson trial date were postponed and the stock felt. When you don't have the good timing, you may have problems. I very rarely buy calls as I think you buy wind.
Even if you don't like to sell puts more than 3 months away, I think the 25$ january 05 puts are a great sell. If they put it to you, you can buy at 16.50. In the contrary, you keep the 8.5$ per share ! At what price do you think we will be at that time ?
In your post you sayed that if the shares are put to you, then you sell calls. Can you explain what is your strategy and when you sell the calls.
Let's take the following example. You sold 25$ puts on may at a price of 2.50$. If on may 16th the shares are at 24$, they put them to you. Would you then sell 22.50$ or 25$ calls but on june. Am I right ?
BTW I've just sold Jan05 25$ puts. That way, I conserve my shares, avoiding the risk of trading, and I make money with the options.
Market Data 
Markets 
AI
