Anyone willing to share some options trading tips?

[cantdrv55]

A couple of years ago I read up a lot on trading options and was relatively successful for a short time. I was hoping to supplement my income by quite a bit but realized I'd need to have more capital than I was willing to put down in order to accomplish my goal.

I read a recent article in either Money or WSJ about a fella who owns about $28k in a certain stock and was writing covered calls on them. When all was said and done, he was hoping to net about an 11% gain. I understand the strategy but was wondering if anyone here has been able to realize even higher profits. I don't own that much in any individual stock, only in retirement accounts which I am unwilling to risk, so I am looking for a higher return strategy.

I've never sold puts or naked calls as I believe those strategies are for more advanced traders but I now have a couple of small accounts that I am willing to risk. I trade with OptionsXpress, if that matters any.

Would anyone be willing to share their options trading strategies?

[lukeh]

I know this isn't what you want to hear but after 20 years in the business the best options strategy I've found is to avoid it. I did covered calls for years and drove myself nuts. I've found when the market dropped I'd still lose money and when the market went up I'd have been better off just buying...holding...then selling at a profit. I did pretty well when the market was flat but overall didn't beat the market. Good luck and I look forward to seeing what strategies people have to share.

[Steve Viegas]

Sell high, buy low?