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 👇👇

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

Options Trading can be as simple or as complicated as you make it

Here’s a very simple one 👇

If you have 100 shares of $NVDA that you bought it at $100…

And want to sell it at $155…

And you want to get paid to wait?

Here’s how you can do it 👇👇 You can sell a Covered Call

Pick any expiry date that makes it worth the premium for you

Let’s pick Dec 20 expiration for this example

You are getting paid $300 in premium

That’s your cash to keep that you receive AS SOON AS the order is executed

What happens then? 👇

I make over $3,000 USD each week selling options

I have rules to my system

Here are my 4 rules: It’s no joke I make between $3,000 and $5,000 a week selling options

The collateral used is anywhere between $150k to $800k

The avg is around $600k

Let’s get into the rules that frame my repeatable system…

Then I’ll show you my trade for this week.

I make more than $3000 USD on average per week selling options

I have 7 rules to manage my losses/risks:

👇👇 Risk management is crucial

But even with the best risk management strategies I have plenty of losses

Losses are inevitable

Key is to minimize the losses and the IMPACT of those losses

If it’s a quality stock then mostly it is a TIME LOSS until the stock recovers

Rules 👇👇

What is Theta in Options Trading?

Theta measures the rate of decline in an option's value with the passage of time

Time decay

A brief thread 🧵👇👇 Theta...

Also known as time decay is a critical factor in option pricing and a key tool for option sellers

Let's dive into how savvy traders leverage theta to their advantage

👇👇

What is Gamma in Options trading?

GAMMA is a crucial concept in options trading that often gets overlooked

It measures the rate of change in an option's DELTA in relation to changes in the stock’s price

Let’s dive into it

A brief thread 🧵 👇👇👇 Quick note about Gamma in Options trading:

✅ Selling options = gamma negative

✅ Buying options = gamma positive

For every $1 move in stock price the DELTA moves by the amount of GAMMA

In simple terms:

✅ Gamma measures how quickly delta changes

What is Delta in Options Trading?

In the context of options Delta is a risk metric

It measures the sensitivity of an option’s price to changes in the price of the stock/ETF

A brief 🧵 👇👇 Delta measures the amount an option’s price will change with a $1 move in the underlying stock

The value of a delta can range from -1 to +1

Example:

If a call option had a delta of 0.50 (50 delta) & the underlying stock went up by $1 the option price increases by 50c

If I had $10,000 and I wanted to just passively sell options and earn income?

Here is how I would do it 👇👇👇

$SOXL $HOOD $PLTR $SPY $QQQ

This would generate $245 -$295 in monthly income

That’s more than 30% annual return when compounded

👇👇👇 The idea is to sell these very passively

I wouldn’t need to check these every day

I wouldn’t need to monitor these every day

Very passive trades

No weekly or bi-weekly trades

Monthly trades that are CONSERVATIVE

Rinse and Repeat

If I had $100,000 and I wanted to keep my trading strategy really simple with not much time and effort?

I would pick 3 HIGH quality stocks

$AMZN $NVDA $TSLA

This would generate a 32% annual return plus potential capital gains

Here would be my system: With stocks like $AMZN $TSLA $NVDA that have:

✅ established history

✅ great products

✅ potential future growth

✅ Lots of Cash

You know they are great companies that won’t tank your portfolio

Here is how I would do it:

I make more than $3,000 per week by Selling Options

Here is how I do it 👇👇

🧵 The two primary strategies I use:

✅ Selling Covered Calls

✅ Selling Cash Secured Puts

🚨 Strategy Spotlight: Bear Call Spread 🚨

It's easy to make money when we are in a Bull Market

But how do you make money in a Bear Market?

Here's ONE way to do it:

A Bear Call Spread

A thread 🧵 that shows how to set it up with an example

👇👇👇 What is a Bear Call Spread?

- It's an options strategy designed to capitalize on a decline or neutral movement in the underlying stock

- It's also called a Call Credit Spread

What is Delta in Options Trading?

In the context of options Delta is a risk metric

It measures the sensitivity of an option’s price to changes in the price of the stock/ETF

A brief 🧵 👇👇 Delta measures the amount an option’s price will change with a $1 move in the underlying stock

The value of a delta can range from -1 to +1

Example:

If a call option had a delta of 0.50 (50 delta) & the underlying stock went up by $1 the option price increases by 50c

I love investing in the BIG Tech and small Tech

So you won't be surprised that I love to trade $SOXL and $TQQQ

And invest in $QQQ

I made 18% in less than 2 months trading

Here are my rules to trade these

A thread 🧵 👇 $SOXL is the 3X ETF for the semiconductors

$TQQQ is the 3X ETF for the Tech heavy Nasdaq (QQQ)

$2701 in locked profit using $14,988 of average collateral using $SOXL and $TQQQ

Here are some rules that I follow trading these tickets

I make $1000s every week from Options Trading

3 Greeks help me do that 😀

A thread 🧵 of threads 👇👇👇 There are 5 Option Greeks

But…

I use three of them very heavily

✅ Delta

✅ Gamma

✅ Theta

Check this out:

I have made an average of $2,954 each week selling options in 2024

I have rules to my system

Here are my 6 rules: It’s no joke I make between $2,500 and $4,000 a week selling options

Let’s get into the rules that frame my repeatable system

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

Top 8 mistakes beginner options traders make

And how to avoid them:

Thread 🧵 Options have great benefits

You can cut losses, protect your gains and control big chunks of stocks with a relatively smaller amount

But…

You can also quickly lose more money than you invested with options

A thread 🧵 about Option’s premium

There are two parts to an option’s premium:

✅ the option’s intrinsic value

✅ the option’s extrinsic value (time value)

👇👇👇 The intrinsic value of an option holder (buyer):

It is the difference between the underlying stock’s price and the strike price

Intrinsic Value of a Call option = Current Price - Strike Price

Intrinsic Value of a Put option = Strike Price - Current Price

I traded over 300 covered calls in 2023 and generated more than $51,500 in income

Here are my 10 steps for trading a covered call:

👇👇👇

$TSLA $AMZN $GOOG $COIN $AAPL $SQ $SOFI $PLTR Choose a stock or ETF you like for the long term and are bullish on:

✅ Are they profitable?

✅ Are their earnings growing?

✅ Do they have a GREAT product or provide great service?

✅ Do they pay a dividend?

✅ Would you want to own it for 5yrs?

📊 Considering a Cash Secured Put?

Buckle up for some trading insights! 🛡️📉

A thread 🧵 that you will enjoy 😉

👇👇👇

#OptionsTrading #Optionselling ✅ Intro to CSPs

Cash Secured Puts – a savvy trading strategy where you agree to buy a stock at a price you're comfortable with

What are Covered Calls?

Covered Calls are a popular options strategy that can be used to generate CASH 💰

How?

From your stocks that you already hold

I sell CCs on $AAPL $GOOG $AMZN $TSLA $AMD $SOFI $DDD $QQQ $SQ $JNJ $TQQQ

Basics of Covered Calls

👇👇👇

#OptionsTrading Basics of Covered Calls:

✅ Sell a Covered Call Option

✅ Collect your cash!

✅ Repeat

If you like CASH, Covered Calls are for you 💸💰

How do you start? 👇👇