Don’t forget that a good defense can win a game. In other words remember that using options in a defensive nature can help cushion a downturn in the market. One of the useful techniques is called a collar. In this case you sell and out of the money call and you buy a PUT. If the stock goes down you win on both accounts, not to mention that you capture some premium to lower your cost basis.
Now the way you may want to look at this strategy is buying a PUT out further and selling calls weekly. The volatility is back and this strategy is certainly worth taking a look at. Remember that options are NOT suitable for all investors and we encourage you to seek the advice of an investment professional. People can and do lose money.
Tips: By selling calls you are receiving premium, buying Puts costs you premium. WE look to spend the premium we receive for the call for the PUT. Either a zero sum game or keeping premium where possible.