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I started writing options a year ago and it was a better move than if I held my portfolio & left it. After making approx 30% the previous year...I got a scare with Centro but got out with a low stop loss.

Having a portfolio of more weighted materials\energy and some financials I had mixed success...

From the 50+ option writes I made approx 3% pm. Always getting a good premium for writing at the money. However offset my portfolio with a 12% loss and it equals 18% up for the year- yes I know in a bear market the last financial year. Yet it was lucky timing for preservation of gaining positive interest, all up.

It not so exciting as picking a short\long call\put yet it can give some protection, and some protection is better than none. This next year I will write a few on stocks I wish to keep then take a little more risk with some other strategies. I will stick to energy then in time hope to pick the time that financials bottoms out.

PLUS you get far better premiums for writing covered calls than you did a year ago. As volitility in the markets suites the option\put pro.

I have known some guys who take out a put + call option on same stock and  seem to always make a buck. Then again nearly everyone wants to tell u about their winners & not their losses. Lucky year in the worst stock market year to date for 26 years. Covered calls will need to be apart of my upcoming years strategy for Rio BHP and the more stable stocks. Use the volitile stocks for your option guesses.