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by maest 1036 days ago
Terrible advice.
1 comments

It limits your upside but of all the stock-trading advice floating around this isn't very high on the "terrible" list IMO
It's terrible in that:

1. it is not positive expectancy (because naive strategies like this never are)

2. it involves trading in less liquid instruments, which means you lose more money to transaction fees

3. you're _selling_ options. Even if these are covered in theory, there's so much scope to screw this up implementation-wise, that it's just not worth it.

I see no redeeming features for this particular "strategy".