writing covered calls to bring cost basis down is this good?
the idea is sound. I would have sold the Aug 7s at that time. For example if you bouht at the close Friday for 6 bucks you could have sold the Aug. 6s for .65. If it stays about 6 you make over 10% in two weeks. Also if it falls (which is all it seems to do) your basis is 5.35. this is how I do it. Problem is when you get that big spike and the VIX doubles you miss out on the big upside. II just can't take the pain so I sell the current month near ot at the money stikes.
As another poster pointed out the VIX is so low that selling the at the money migh not be the best move at this time. I am in at 7.26 with the Aug 7s for .95. Looks like I will be selling some 6s in to weeks