Worked well this year,low risk,moderate return and less stress. I buy good companies with good fundamentals,coming off positive earning news. Sell slightly in the money calls and out of the money puts. Even if the stock drops a little or stays the same, make around 20% over 6-9 months. This of course depends on the volatility. If stock takes off, do not make as much as holding it naked but it is safe.
That is called selling a straddle or strangle vs. your long. Since the stock market slowly advanced the whole year that was a pretty good strategy. If the stock market tanks, you could lose a GREAT deal of money doing that.
Not really, I roll down my puts and also the calls if I need to. I also sell extra out of money calls against my stocks if the market looks weak. The key is picking good companies.