Working Algorithm for Trading Options

Here's my "working" algorithm on trading options...  I am pretty new at the game, but hope to learn by trying things and getting feedback.  What do you think about the below?


 Algorithm

  • Start: Sell a put on a symbol you don’t mind owning

  • If the put goes ITM

    • Roll the put out (and down, if possible)

    • Or, buy the shares

    • Need to have a cushion 

  • If own shares, sell covered calls on it

    • If covered calls go ITM, roll up and out.


When the market drops

  • Sell puts

  • Spreads on VIX

  • Buy LEAPs


When the market goes up

  • Sell calls

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