In February I made $11,637 USD in net profits trading covered calls.
I have a system, here are my 7 rules:
I have a system, here are my 7 rules:
Itβs no joke, using my system I made:
$11,967 in February
$9,837 in January
$15,613 in December
This is net profit after accounting for some losing trades.
Here are the 7 rules:
$11,967 in February
$9,837 in January
$15,613 in December
This is net profit after accounting for some losing trades.
Here are the 7 rules:
RULE 1 - Sweet Spot:
I sell Delta 0.20 - 0.30
This forces me to sell out of the money
This is a great balance between risk and reward
I sell Delta 0.20 - 0.30
This forces me to sell out of the money
This is a great balance between risk and reward
RULE 2 - Weekly Options:
Sell weekly options if possible.
You will maximize the time decay and maximize your monthly income.
Sell weekly options if possible.
You will maximize the time decay and maximize your monthly income.
RULE 3 - Sell on Friday:
I usually sell mine on Friday, so I take advantage of the time decay over the weekend
Yes, option time decay includes the weekend
This is especially important as we head into the spring and summer months with many long weekends
I usually sell mine on Friday, so I take advantage of the time decay over the weekend
Yes, option time decay includes the weekend
This is especially important as we head into the spring and summer months with many long weekends
RULE 4 - In the Money Game Plan
Have a method for when your options end in the money
Know your game plan ahead of time...
Have a method for when your options end in the money
Know your game plan ahead of time...
Rule 4a - My typical game plan:
- Buy back the option
- Sell some of your odd lot of stock to raise cash (see rule 7)
- Sell new call options for next week, and generate more income
- Buy back the option
- Sell some of your odd lot of stock to raise cash (see rule 7)
- Sell new call options for next week, and generate more income
RULE 5 - Liquidity Counts:
Trade options on
$SPY
$QQQ
$IWM
$TSLA
$GOOG
$AMZN
$AMD
$NVDA
$AAPL
They are extremely liquid, and we want to enter and exit positions quickly, easily, and for fair prices.
It also means we get our sweet spot each week.
Trade options on
$SPY
$QQQ
$IWM
$TSLA
$GOOG
$AMZN
$AMD
$NVDA
$AAPL
They are extremely liquid, and we want to enter and exit positions quickly, easily, and for fair prices.
It also means we get our sweet spot each week.
RULE 6 - Know when to roll 'em
Know theta, and when your NEXT option theta is higher than the price of your current option, consider rolling the option.
You've made your money, time to roll
Don't wait around for every penny, this can cost you opportunity
Know theta, and when your NEXT option theta is higher than the price of your current option, consider rolling the option.
You've made your money, time to roll
Don't wait around for every penny, this can cost you opportunity
Rule 6a - What is a roll?
You need to understand what a calendar roll is:
Buy To Close your current option
Sell To Open your next option in the future
Always Delta .20-.30
Keep the income coming in
You need to understand what a calendar roll is:
Buy To Close your current option
Sell To Open your next option in the future
Always Delta .20-.30
Keep the income coming in
RULE 7 - Odd Lot:
This is the best hack
DONT COVER ALL YOUR STOCK
Hold a bit of stock in reserve so you can sell them if you need to and buy the short option back
So donβt own 100 shares, own 110 or 115 per contract
This is the best hack
DONT COVER ALL YOUR STOCK
Hold a bit of stock in reserve so you can sell them if you need to and buy the short option back
So donβt own 100 shares, own 110 or 115 per contract
Want to learn more about making an income from covered calls?
This beginner's guide is the best one on the market today:
Written by the legend himself, @BusinessFamous
gumroad.com
This beginner's guide is the best one on the market today:
Written by the legend himself, @BusinessFamous
gumroad.com
@BusinessFamous As a BONUS
For the first 20 that buy today:
I will give you ANOTHER tool to get you started selling Covered Calls
For the first 20 that buy today:
I will give you ANOTHER tool to get you started selling Covered Calls
$10 off a CFU membership for 3 months
- Access to all my trades
- Access to what members are trading
- Live trade alerts
- Library of videos, books, and livestreams
@joincfu
joincfu.com
Promocode will be emailed to you right after you open Turbocharge!
- Access to all my trades
- Access to what members are trading
- Live trade alerts
- Library of videos, books, and livestreams
@joincfu
joincfu.com
Promocode will be emailed to you right after you open Turbocharge!
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