Cure for the optimist?

 I have definitely been looking for upside in the market since around June 08.  This slow moving disaster of an economy has taken a long time to spill its guts along the roadside.   I think this market is going to go basically sideways for quite a while, but that won't preclude a few (or perhaps a lot) scary drop-offs during that time.  Even though the market has been tracing out a negative ramp since Oct 08 for some reason I keep expecting things to turn around and not go lower.   The November lows were tested out and bested (worsted?) yesterday, but today the market is having a good day, with a lot of volume--a good sign.  

    At this point I would have definitely been better off closing out my equity position last Friday, the option values were near zero.   Being in just the equity position is no worse than my previous strategy, but it certainly doesn't feel good when the market is tanking.    Clearly I was optimistic, gambling, when probably I should have been playing it safe.    

    Thinking about my strategy this weekend,  I think I can summarize my strategy as:

• Basically a bullish strategy
• Take 60% of premium when I can get it (glad I did that this time)
• Maximize premium (generally at the money options) 
• Hold on when the market drops--provides some much needed insurance--rest of portfolio is tanking too
• Try to maintain capital, generate maximum premium, have time be on my side
• Beat straight, no frill call writing strategies by taking short term gains, being on the sidelines for some of the drop-offs. 
• Stagger the trades, don't do it all in one shot, avoid being completely wrong

   Some behavoirs to avoid:

• Expecting the one day turn-around
• Trying to play the down side (time is against me, too much of a gamble, too hard to time)
• Letting the position partially unwind (equity only), very bullish--more risk

Monday's trade  $77.74  SZCCZ ($78 call) 3.45   Debit  74.29  Premium  3.71  60% credit  76.52

Tuesday's trade  $75.84  SZCCX ($76 call at 3.35  Debit of 72.49 Premium 3.52 60% credit 74.60