This Roller Coaster Only Goes Higher - Don't Fight It

There's an old expression that advises that it's generally a bad idea to fight the Federal Reserve. They have pretty powerful tools even when there's some concern that the quiver is beginning to empty. Janet Yellen, its Chairman, may give every indication of being a dove, but my guess is that when on the canvass and feeling threatened, she would be a formidable foe to anything that creates a threat. Right now, the most immediate threat that can be recognized is that of a rising interest rate environment, although there are still those that worry about deflation, as well. But at least most everyone is agreed that interest rates have more than just mere relevance.

I like that kind of gap between what the market is expecting and the risk level where I may be able to achieve my desired ROI. One negative factor, however, which limits the ability to respond to an adverse price movement that might make unwanted assignment possible, is the lack of expanded option availability. I like to have those available in the event that a rollover of the put contracts is necessary, in order to avoid assignment, while then awaiting a bounce back in share price.

Source: Seeking Alpha

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