Roll With The Changes lyrics

In the world of online trading, a trader can buy a given weekly optionable security (a multiple of 100 shares worth) and consistently generate weekly cash flow by utilizing the popular options strategies of selling covered calls and cash secured puts - without being too concerned about the ever fluctuating price of the underlying security.
If a trader buys the 100 shares and immediately sells 1 call option and 1 put option, both with roughly at-the-money strike prices, at the expiration of these options, the trader will be called out of the stock position or will take assignment of 100 additional shares (at the put strike). The key for consistent success with this strategy is to roll the sold put option to the next week's expiration late in the current week's term - in the event of a significant downward move in the price of the underlying security. This will be a cash flow positive step because the trader will gain the time value of the next week's put option: -the trader will close the current week's put option by buying it back (at a loss) but then recoup the loss plus the extra time value by selling the next week's expiring put at the same strike price. You just keep on rolling until the price of the underlying security comes back up to where you can either favorably take assingment or allow the put to expire. So there you have my recipe for options trading success in a nutshell: roll with the changes