So, semi recently got into options. And have been doing pretty well selling CSPs. Trying to only use companies i dont mind owning, but also planning to sell covered calls once any of the puts get assigned. None have yet however.
My question though is on the timing of swapping to covered calls after a CSP assignment. Generally this only happens after a good dip in stock price, assuming OTM CSPs. Being solid stocks nothing too crazy conventional wisdom would suggest they are poised for a rebound after such a drop. Seems like this would be a risky or unprofitable time to sell covered calls would it not? Is it wise to wait for a rebound THEN sell covered calls on the assigned shares?
Does the appreciation plus premium upside outweigh just holding them and not capping gains? Ive been selling CSPs after a stock has already dipped, limiting further downside, and assumed the inverse would also be a good idea for covered calls. But having just dipped not peaked at time of assignment im wondering how to best enter a covered call at that point.