(08-03-2020, 03:59 PM)NilesMike Wrote:

(08-03-2020, 01:13 PM)fenders53 Wrote:

(08-03-2020, 12:45 PM)vbin Wrote: I wonder how much weekly options u get? Last time I checked T and Mo had $10 for weekly options.

Sorry I wasn't clear.  Weekly options only work for volatile stuff.  I do make $300 or $500 for a weekly option sell in something like QQQ or ROKU with a strike considerably out of the money.  There are no free rides as you know.  The NAS could drop 10% in a week and I own 100s of shares, albeit at a decent price.  

Reqarding the boring stuff game.  I am NOT selling 7 day options in T-KO etc.  I could, but you have to commit to WAY too many shares to make it worth it.  Every week or two when the boring stuff has a down day or two I am selling options that expire 2-5 weeks out.  95% of them expire worthless in a choppy or up market.  Spread out the dates and boring options expiring worthless every week and I rinse and repeat it 2-5 weeks forward.  I should be well past 500 hundred contracts this year.  I spread them out because I have no idea where the market goes from one week to the next.   

Reality is never less than 1% a month return or I don't play.  I target 1 1/2 to 2 1/2% per contact for a months waiting.  Add in the dividends if I can pick the expiration dates right.  Few home runs because i am trying to hit singles and I consistently do.  A $50 to $100 win may not interest most here but 500 times $100 works well enough for me with low risk if you stay disciplined.

I am consistently selling covered calls in T and KO, have a separate account just for them.

I sell 2 calls at what I determine resistance to be, then I buy 1 call a strike or 2 above those call strikes (IRA, can't be naked calls)

When KO was 45ish I sold 2 SEP18 50 calls, bought 1 SEP18 55 call for $1.21 Credit

If KO goes nowhere, I collect 1.21 plus .41 dividend for 1.62. 162/4500= 18% annualized.

If KO moves up to 50, I close the trade, buy the calls back and sell the higher call. Since the trade is positive delta. I make money. The stock would be up $500, the 2 calls would be down and the 3rd call would be up a smidge. Net would be between 250-300 depending on DTE left. 

250/4500= 27% annualized.

Downside? None really for me, I'm not selling KO unless called away, then put on the wheel of fortune by selling puts until I get put my shares again.

Guys who aren't doing some options around their positions are really missing an opportunity to crank your return.
The rub is one needs 100 shares minimum

Good luck to all.

(08-03-2020, 03:59 PM)NilesMike Wrote:

(08-03-2020, 01:13 PM)fenders53 Wrote:

(08-03-2020, 12:45 PM)vbin Wrote: I wonder how much weekly options u get? Last time I checked T and Mo had $10 for weekly options.

Sorry I wasn't clear.  Weekly options only work for volatile stuff.  I do make $300 or $500 for a weekly option sell in something like QQQ or ROKU with a strike considerably out of the money.  There are no free rides as you know.  The NAS could drop 10% in a week and I own 100s of shares, albeit at a decent price.  

Reqarding the boring stuff game.  I am NOT selling 7 day options in T-KO etc.  I could, but you have to commit to WAY too many shares to make it worth it.  Every week or two when the boring stuff has a down day or two I am selling options that expire 2-5 weeks out.  95% of them expire worthless in a choppy or up market.  Spread out the dates and boring options expiring worthless every week and I rinse and repeat it 2-5 weeks forward.  I should be well past 500 hundred contracts this year.  I spread them out because I have no idea where the market goes from one week to the next.   

Reality is never less than 1% a month return or I don't play.  I target 1 1/2 to 2 1/2% per contact for a months waiting.  Add in the dividends if I can pick the expiration dates right.  Few home runs because i am trying to hit singles and I consistently do.  A $50 to $100 win may not interest most here but 500 times $100 works well enough for me with low risk if you stay disciplined.

I am consistently selling covered calls in T and KO, have a separate account just for them.

I sell 2 calls at what I determine resistance to be, then I buy 1 call a strike or 2 above those call strikes (IRA, can't be naked calls)

When KO was 45ish I sold 2 SEP18 50 calls, bought 1 SEP18 55 call for $1.21 Credit

If KO goes nowhere, I collect 1.21 plus .41 dividend for 1.62. 162/4500= 18% annualized.

If KO moves up to 50, I close the trade, buy the calls back and sell the higher call. Since the trade is positive delta. I make money. The stock would be up $500, the 2 calls would be down and the 3rd call would be up a smidge. Net would be between 250-300 depending on DTE left. 

250/4500= 27% annualized.

Downside? None really for me, I'm not selling KO unless called away, then put on the wheel of fortune by selling puts until I get put my shares again.

Guys who aren't doing some options around their positions are really missing an opportunity to crank your return.
The rub is one needs 100 shares minimum

Good luck to all.

(08-03-2020, 11:19 PM)NilesMike Wrote: Been doing the same. Sell cash secured puts until you get called, then sell calls against. One thing I'm not sure I understand in your strategy: why are you buying the 55 call? You never really want to sell your shares and while the two puts lose value when share price is 50 you gain money on the one call that offsets it? Or am I gettig this wrong?

It is calls not puts.

Visualize a covered call and a call spread.  The 55 call "covers" one of the short 50 calls. Can't have a naked cal in an IRA. The stock covers the other short 50 call.

Collect 2 short call premiums, buy a cheap call above to "cover", collect premium, dividend and possible 10% stock appreciation (less buyback cost of short calls)

In the spirit of educating, you need to tighten up the definitions. When stocks are PUT to you, they are ASSIGNED. When a call expires in the money it is CALLED away. Thinking of it his way will make things more clear for you.

(08-03-2020, 06:41 PM)NilesMike Wrote: If you are sure you can just buy stocks that rise 3-5% every month then you should do that instead.

LOL

(08-03-2020, 04:27 PM)fenders53 Wrote: ......
I exchanged a zillion PMs with WaMike and got him started. He is probably about 50 trades in by now and has enjoyed a perfect environment for this.  
.........

(08-04-2020, 09:33 AM)MikeWa Wrote:

(08-03-2020, 04:27 PM)fenders53 Wrote: ......
I exchanged a zillion PMs with WaMike and got him started. He is probably about 50 trades in by now and has enjoyed a perfect environment for this.  
.........

It's over 60 by now. :-)

Now, about the "perfect environment"...
It is a full time job with a decent pay and also some fun, but it takes a lot of time.
I am sure my technique needs some improvement, but I spend a lot of time daily to find good deals, not always with good or any results.

And there is of course fire fighting. I had to do several rollouts last Friday to avoid assignments and one stock to be called. Not that I'd mind owning these stocks, but the goal is to get premiums without buying shares.

(08-04-2020, 09:52 AM)MikeWa Wrote:

(08-04-2020, 09:33 AM)MikeWa Wrote:

(08-03-2020, 04:27 PM)fenders53 Wrote: ......
I exchanged a zillion PMs with WaMike and got him started. He is probably about 50 trades in by now and has enjoyed a perfect environment for this.  
.........

It's over 60 by now. :-)

Now, about the "perfect environment"...
It is a full time job with a decent pay and also some fun, but it takes a lot of time.
I am sure my technique needs some improvement, but I spend a lot of time daily to find good deals, not always with good or any results.

And there is of course fire fighting. I had to do several rollouts last Friday to avoid assignments and one stock to be called. Not that I'd mind owning these stocks, but the goal is to get premiums without buying shares.

BTW. I didn't want to sound negative. I still enjoy it, especially premiums.... And I have plenty of time. lol

(07-22-2020, 08:51 AM)EricL Wrote: Bought a little SLV in my trading account. Silver broke the $20 level recently, and with all the money printing being done around the world, I think it will continue higher.