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I started selling monthly CSPs 3 weeks ago. I used to pocket 50% on the premium within a week itself and either rolled or closed the positions.
Since, last week, I started selling weekly CSPs as I felt I can predict the price movement much better on a short term weekly expiration, selecting the strike based on support levels.
I sold a CSP ($112 premium for 1 contract) on $COIN at $46 yesterday after the dump and strong bounce, as I felt, it will not dip to $46 by this Friday.
I sold a CSP ($187 premium for 1 contract) on $AMD at $115 (current price $121), based on a short term support level, expiring next Friday (June 16).
I feel, I can come up with short term strike support levels on a daily price chart and hence felt weekly CSPs are better than selling monthly CSPs.
What do you suggest ?
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- 1 year ago
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