Short Puts: Rows of Marching Soldiers

Strategy: Sell regular near-term short puts for solid performers, use the net credit to make speculative purchases of long calls for big payoff.

Short puts:
Like a row of marching soldiers: progressive tiered short puts for solid companies, 2-4 months out with a strike at 20% below current level. Net credit each position around 1K, net risk: 10-15K
Use 50% of the net income to make long bets on promising companies

Long calls:
Near-the-money long calls, 4-6 months out, invest around 0.5K, for promising companies or based on overall market and sector performance
Sell when call is 1-2 months away, unless it's almost worthless at that point

Do this repeatedly