At the risk of sounding like a broken record, I’m continuing my theme of the past week of looking for opportunities to sell premium in mostly delta-neutral options trades.
“Delta-neutral” basically means I’m looking to collect income in sideways consolidations while the broader markets sort out this current correction.
Not only is this a good tactical bet for sideways, sloppy, and messy markets, but it also provides nice portfolio diversification if you have a book of long positions like I do.
We’ve got a well-known mega-cap stock to use as our vehicle today, so let’s get to it. [Read more…]