A Covered Call strategy isn’t a “one size fits all” strategy
There is no single way to sell a Covered Call
There are various different ways to sell a Covered Call
👇👇
A thread 🧵
There is no single way to sell a Covered Call
There are various different ways to sell a Covered Call
👇👇
A thread 🧵
✅ Selling on Long Term Holds
On the occasional times that I sell Covered Calls on my long term shares…
I look to sell at a delta 0.15 or lower
My goal is to make some extra income
And not lose my shares
I do this very occasionally after share prices have jumped
On the occasional times that I sell Covered Calls on my long term shares…
I look to sell at a delta 0.15 or lower
My goal is to make some extra income
And not lose my shares
I do this very occasionally after share prices have jumped
✅ Poor Man’s Covered Call
In my options account if I sell a CC on a stock that’s tied to a Long call
I will sell at around Delta 0.15-.20 or lower
Between a week or a month long expiration date
Varies based on stock and market sentiment and how the technicals line up
In my options account if I sell a CC on a stock that’s tied to a Long call
I will sell at around Delta 0.15-.20 or lower
Between a week or a month long expiration date
Varies based on stock and market sentiment and how the technicals line up
✅ Wheel Strategy
If it’s a wheel play…
Then the only thing that matters is the price I bought the shares at
I want to sell a CC at or above my cost basis
If it’s a wheel play…
Then the only thing that matters is the price I bought the shares at
I want to sell a CC at or above my cost basis
✅ Wheel Strategy - Part 2
There will be times when you bought the shares or got assigned the shares via a sold put & the stock tanks
In this case I like to be opportunistic & sell below my basis sometimes
But these are at a low delta where managing isn’t too hard
There will be times when you bought the shares or got assigned the shares via a sold put & the stock tanks
In this case I like to be opportunistic & sell below my basis sometimes
But these are at a low delta where managing isn’t too hard
✅ Wheel Strategy - Part 3
There will be times when I get assigned on great stocks like $AMZN or $NVDA at a great price…
When I will remain patient
I will let the stock price appreciate before selling any CC
Capital gains are part of the CC equation
There will be times when I get assigned on great stocks like $AMZN or $NVDA at a great price…
When I will remain patient
I will let the stock price appreciate before selling any CC
Capital gains are part of the CC equation
✅ Selling Shares
If I want to sell a stock at a particular price (but not too desperate to sell)
Then I will keep selling at that strike price until I get rid of my shares
I might roll it over a couple of times to keep getting more premium
But eventually I want to sell
If I want to sell a stock at a particular price (but not too desperate to sell)
Then I will keep selling at that strike price until I get rid of my shares
I might roll it over a couple of times to keep getting more premium
But eventually I want to sell
So yeah…
There are many ways to sell a Covered Call
There is no one way to do it
Of course there are nuances based on which stock it is and how the technicals have lined up
There are many ways to sell a Covered Call
There is no one way to do it
Of course there are nuances based on which stock it is and how the technicals have lined up
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