This thread has become a call buying thread the last week or 2. I know I'm a primary source for that, and I even think there are good reasons for that (my own call buying positions says I believe that).
However, in a return to the days of yore when I sold options for a bit of income, I realized this morning that I had some cash that I COULD use to buy more calls (I'm running out of that
), but I wasn't going to. But I could use that to open a weekly put sale. And while I've otherwise stopped working weekly puts, I also know that I'll be watching price changes daily for at least the next month, so I can monitor a weekly put position as well, basically for free (time and energy that is).
So I sold December 4 500 puts today for $6. I am almost 100% confident I can make more with that money by purchasing calls. But it's that little sliver of doubt, plus a need to keep that cash pretty quickly available, plus the realization that I have enough purchased calls, that has me collecting income money on that bit of cash.
As aggressive as that strike price is, the position is already ahead 15% or so.
Lesson of the day - double check that account you're buying or selling in. Fidelity at least defaults to my brokerage account for any new trades, making it easy to open new positions in the brokerage account instead of the Roth or some other account.
Today's reminder of this lesson will earn me $100 on the round trip of opening in the wrong account, realizing the error, and immediately closing the position (including the double commission, not including any margin interest I might get charged for a 30 minute margin position). That could have gone very differently of course. The last lesson on this topic cost me about $100 - maybe repetition will help.
EDIT: Actually this error cost me more like $2k between the entry price in the wrong account to the entry price in the right account. That one in and out transaction though - that was profitable!
