Generally, I like to buy and hold. However, I do like to take advantage when the stock takes big swings for no fundamental reason (in either direction). I like to stay long with a core holding, and accumulate or sell shares when the swings occur. However, if the stock isn't moving, I generate more gains by selling options.
So, normally if the stock makes a big run up, I sell covered calls a few dollars out of the money. So, if it runs up even more, I unload the shares at a profit and wait for the pullback to buy more. Most of the time, however, the calls expire worthless. If I decide I want to keep the shares, I roll the call out another month at a higher strike price and collect another premium.
If the stock takes a big dive, I sell puts a few dollars out of the money. This way, if the stock goes down even further, I end up buying the shares at a bargain price, but I got paid to do it. If the share price doesn't go down, I let the puts expire and sell more the next month.
I don't get rich using this method, but it helps generate a little extra cash while I'm waiting for the next move.
Still here, sold FEB 35 calls yesterday. Like I said, I'll be happy to take some money off the table if it hits 35! If it doesn't close above 35 on Feb 15, I'll sell some March 36 calls and collect more premium.
As James mentioned, TEX is not as attractive at 33 as it was in the low 20's so now is a good time to reduce my position a little. Selling covered calls is a great way to do that.