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Coach Mak | Know Your Money Profile picture
@WealthCoachMak
May 20, 2023 • 9 tweets • 3 min read • Read on X
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A brief thread 🧵 about a $JNJ Covered Call

It almost went out of hand but stayed patient with it

In the end it worked out

I created $263 of my own dividends in April and May 🔥🔥🔥

Initial call sold on April 3:

- 4/14 $160c
- Premium: $44

#OptionsTrading #Optionselling
Soon after selling that call the price of $JNJ spiked up

It reached $166+ before the expiration date

$6+ more than my strike price

I wasn’t ready to lose my shares

So I rolled to same strike of $160 a week forward to 4/21

Added premium: $47 Image
$JNJ stayed relentless and didn’t budge much

It closed at $162.5+ by the 21st

So I had to roll the option forward again

Again a week forward and same strike price

4/28 $160c

Added premium: $55 Image
Another week same old story

$JNJ reached $163+ by the 28th

Another rollover

5/5 $160c

Added premium: $63

More premium because I rolled over earlier than usual

2 days before expiration

The price hadn’t got too out of hand yet Image
Same story this week as well

$JNJ staying between $162 and $164

Closed May 5 below $164

Another rollover

5/12 $160c
Added premium: $72

Collecting premiums and still keeping my 100 shares Image
Finally this week I was seeing the light at the end of the tunnel

$JNJ on May 12 was hovering between $160 and $161

It could expire worthless but by the afternoon it was still $.50 more than my strike

So I rolled again but this time to $162.5

I gave up some premium: - $18 Image
Ok so why did I go to $162.5 now and not before

The ex-div date for $JNJ is coming up

If the option is ever going to get called early it is near the ex-div date

So I wanted to go slightly out of the money for my new strike
And finally on May 19 $JNJ finished below my strike price

My option expired

After all the juggling and maneuvering the option expired worthless

I collected $263 in premiums and didn’t lose my shares

The $263 is more than the quarterly dividend I get from $JNJ

🔥🔥🔥
Learn how to sell options

Using your cash or your stocks

It enhances your overall yearly return

Is it free money? No

Are there risks? Yes

But those risks can be managed

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More from @WealthCoachMak

Coach Mak | Know Your Money Profile picture
May 31
How I use delta for my options trades?

I make a variety of different trades

Different stocks and different scenarios

The delta I use is different for each of these trades

A thread 🧵 👇👇

You will definitely wanna BOOKMARK it

$NVDA $AMZN $TSLA $MSTR $SPY $QQQ
What is Delta in Options Trading?

Delta is a risk metric in options trading

It measures the sensitivity of an option's price to changes in the underlying stock

Example:

$NVDA put👇👇👇 Image
It tells you how much an option’s price will move for each $1 move in the underlying stock

For example:

If an option has a Delta of 0.5...

The option’s price will move $0.50 for every $1 move in the stock
Read 13 tweets
Coach Mak | Know Your Money Profile picture
May 11
You don’t have to spend hours and hours to generate cash flow

You can make 2-3 trades in a MONTH using $10,000 to generate $200 monthly

That’s an annual return of 24% before compounding

How?

By selling options

A thread with some example trades🧵 👇

$HOOD $HIMS $SOFI
✅ Sell a $HOOD Put

- 6/13 $45p

✅ Premium: $99 Image
✅ Sell a $HIMS Put

- 6/13 $37p

✅ Premium: $99 Image
Read 4 tweets
Coach Mak | Know Your Money Profile picture
May 10
A thread 🧵 about how I managed a $TSLA Covered Call the last couple of weeks

It’s a thread about rollover

But not the kind that you traditionally think about

On 4/25 I sold this Covered Call:

- 5/2 $315
- 2 contracts

✅ Premium: $236 🔥

$TSLA was at $280 at the time 👇👇 Image
On 5/2 $TSLA stock was around $288-300

So I rolled up the call to the following week

Went $15 higher on strike now

- 5/9 $330

✅ Premium: $228

🔥🔥

Got about the same premium

But allowed me to select a $15 higher strike Image
Then on May 8 with $TSLA around $285-287…

I rolled DOWN the strike price

Kept the same expiration

- 5/9 $300c

✅ Premium: $220

Added $220 in premium for 2 contracts for reducing the price by $30 Image
Read 5 tweets
Coach Mak | Know Your Money Profile picture
May 3
🚨 $HOOD trade idea 🚨

Buy a deep in-the-money LEAPS Call

✅ 1/15/27

✅ Premium to pay: $2,913

✅ Delta: 0.89

But…

That’s not all

You pair this trade with a few other trades

A thread 🧵 👇👇👇 Image
You sell a short call a month out in expiration

$HOOD

✅ 6/6 $60c

✅ Premium: $85

You keep selling low delta calls to earn premium

But…

You gotta make sure you don’t allow the short call to get called away 👍 Image
An alternative trade you can pair the LEAPS with?

Instead of selling a pure Covered Call…

You sell a Call Credit Spread

You get less premium but you are protecting your short call with a short dated long call

This also opens up other possibilities of profits 😉

$HOOD Image
Read 5 tweets
Coach Mak | Know Your Money Profile picture
Apr 15
A Covered Call strategy isn’t a “one size fits all” strategy

There are various different ways to sell Covered Calls

Let’s dive in 👇👇

$NVDA $TSLA $AMZN $QQQ $SPY

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
✅ 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
Read 8 tweets
Coach Mak | Know Your Money Profile picture
Apr 13
Option Selling helps me generate $1000s per week in cash flow

My sweet spot for selling options is Delta 0.15 to 0.25

Let's talk about the benefits of selling options with a delta of 0.15 to 0.25

👇👇👇
What’s delta?

Delta measures the sensitivity of an option's price to changes in the price of the stock

Options with a delta of 0.15 to 0.25 are slightly out-of-the-money (OTM)

Meaning the strike price is above (for calls) or below (for puts) the current stock price
Delta measures the amount an option’s price will change with a $1 move in the stock

Example 👇

- The option is at $2 and the delta is .50 for both the PUT option and CALL option

- The stock goes up $1

- The CALL option will go to $2.50

- The PUT option will go to $1.50
Read 11 tweets

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