Part 4/9:
David’s methodology emphasized a “margin of safety” by selling call options at least 20% out of the money. His objective was to limit risk while creating a consistent income stream from the premiums collected. He also refrained from holding calls over weekends to minimize potential losses from unpredictable market movements. As a result, he found that, on average, he earned between $2,400 and $2,600 a week through this strategy—a noteworthy accomplishment that included his losing weeks.