A. It never go up constantly in the past. rut always go up 30-40 pts., then pull back 20-25 pts. it is like zig zag
if u sold rut June 850 call at 15, it will move like
15=mkt top, sell to open
5=mkt bottom=buy to close=10 gain,
10=mkt top again (time value lost some already), sell to open=10
10cents =mkt bottom (time value loss to zero on June OE), buy to close=10 cents=10 gain
U can also sell put if mkt is at bottom...
but use the following strategy if mkt goes down more:
If u sell June put when mkt=bottom, but mkt continue to fall, u can swich from june put to july put, i.e. buy to close june put, and sell to open JULY put instead=so u can get one more month to recover. It is much safer to swich to july put at this point, then u can earn more when mkt rebounce.
sell call at mkt top is safer than sell put at mkt bottom because mkt never go up straghtly, but could crush more.
If u buy naked June call at mkt bottom, then mkt falls more, ur call will be worthless on OE, but if u sold put, it will recover soon after mkt rebounce=TIME VALUE is on your side
u need to have a lot of margin in ur account in order to sell put. Maybe 15,000 for selling one put=15
Sorry for the delay, can not type much at work.