No. of Recommendations: 2
Another way to split the difference: write repeated cash-backed puts. A strike or two above the current price so you get lots of upside if it pops, a strike or two below the current price which give a net entry price that is closer to the apparent historical average. Each time stock is assigned, sell it and write another put that keeps the stock price in the middle of your cluster. Each time a contract no longer has a decent maximum remaining rate of return (7-9%/yr maybe?), close it and write another one
And bear in mind that the cash backing the put is still earning interest.
