Generally, I am looking for cash flow.

• I favor selling puts on stocks that pay dividends in case I end up owning the stock.
• I will sell puts on non-dividend stock that has a good premium.
• I will occasionally buy a stock that pays a good dividend.
• I sell out of the money calls on all of the stocks that I own.
• I will occasionally roll out a call on a good dividend paying stock rather than have it called away.
• I will occasionally roll out a call on a stock if I can get additional premium and  roll up to a higher strike price.
• I favor selling puts and calls for shorter periods over longer periods.
  • Usually the closest month has the higher percentage return.
  • This allows (forces) me to evaluate the stock more often.
  • Options that are rolled out often violate this rule.