Selling weekly covered calls reddit, Main goal is to not have the shares called away
Selling weekly covered calls reddit, Basically every Friday afternoon or Monday morning, I sell covered calls that expire the following Friday. May 21, 2023 · Virtually all of those people started selling covered calls in the past 12-18 months when popularity of this strategy exploded on social media, so they've been writing calls in a mostly downward trending market. Beauty of Covered Calls One thing I absolutely love, is that not only can you make money off time (theta) but also delta. As it continued dropping, my covered call contracts would bleed over 70% really quick, allowing me to re sell at a lower strike collecting more premium. I got to sell covered calls 3 times this week on my soxl positions. The logic is that, well, if you’re gaining that much in a week or two, you should be very happy with yourself. Though I usually don't sell weeklies cause things can turn on you quick and you don't have enough time to let things reverse and work themselves out. But rolling in the money weekly calls (before assignment) for a credit Is safer (with less upside) than selling OTM weekly calls and hoping they expire worthless. Three strategies compared under four scenarios The best way to demonstrate why I believe this strategy is so valuable is to compare trading outcomes under four strategies – selling covered calls, owning 100 shares outright, and owning a call option. Any advice or ways to manage the risk would be appreciated. I sell covered calls against my long portfolio, and sell a mix of puts, calls and strangles on meme stocks. . See full list on optionstradingiq. I am wondering if it makes sense to sell calls against them to generate some extra income. I have 500 shares of Apple at $10. Viewing it as losing money is wrong, because by not selling of the upside risk via covered calls, you also incur opportunity cost. They will be OTM weekly’s with a delta of 20 or lower. Main goal is to not have the shares called away. We would like to show you a description here but the site won’t allow us. I tend to sell calls one or two weeks out, at strike prices at around 3% to 5% over. What you are selling of is risk you don't want! In essence, with CCs you are selling the upside above the strike price to the long of the trade. com May 18, 2025 · Master selling weekly covered calls reddit: trading strategies, risk management, passive income opportunities, and professional covered call techniques. Covered calls limit your upside that is true, but that is opportunity cost. Oct 16, 2020 · One thing I've started to do is sell weekly covered calls on SPY, AAPL or TSLA. 40/share).
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