is a place where beginner, intermediate, or experienced traders come to get consistent results without taking on a ton of risk.

I’ll show you how my approach will dramatically reduce risk while allowing time decay to work in your favor.

Trading is something I’ve been doing for over 20 years. Furthermore, in order to generate more income off my trades I started trading cash secured puts and covered calls around 7 years ago. 

Target goal is 2.5% a month across all strategies using high probability trades!

Options as a strategic investment chapter 1 and 2 covered call writing

Chapter 1 just has definitions for out of the money, in the money etc.

Covered calls
Sell itm covered calls for more downside protection
Sell both itm and ATM/otm for best of both worlds
Find return if called away, be happy with it before taking the trade
Go with stocks you want to hold medium to long term.
Be willing to sell cc below cost basis for a locked in loss but safer than original call. Can also roll down only part of the position
Sell cc at different expirations, shorter term for more theta decay
It’s unlikely to have a loss on high prices low of stock where you cc itm
When stock goes up it’s ok to roll up for a debit

Action to take at or near expiration
For itm, optimum time is when time value almost completely disappeared, for otm when return by near term option is less then return from longer term. Find the return per day in both cases.
FYI selling 10 options costs around $100 I’m early 90s!
Rolling usually earns more than letting get called away (when it cost money to buy stock)
Summary: cc reduces the risk of owning stock and makes portfolio less volatile to short term market movements. Writing itm is more conservative then otm.
Returns should be calculated BEFORE entering trade. Including commissions and dividends.


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