Trying to get to the point where I can do this in my IRA. Unfrotunately, I don't have enough in there to get 100 shares and am restricted to selling covered only.
I don't buy calls as a general rule.
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Trying to get to the point where I can do this in my IRA. Unfrotunately, I don't have enough in there to get 100 shares and am restricted to selling covered only.
I don't buy calls as a general rule.
I don't know how it would work in an IRA. If you are trading a regular brokerage account, you could look into what is called a 'Poor Man's Covered Call'. This is when you buy an option for a year or longer on a stock (which to the broker is like you having 100 shares and is called a LEAP option) then selling short term covered calls on that contract. You can't let them expire so there is a bit more management involved, but it's a great way for a smaller account to get into that game.
Also look into smaller companies to start if you want to go the accumulation route. But yeah, I only sell options other than the leap option.
Oh yeah. forgot I can do poor man's covered calls. It has been a while.
The other thing I am doing is looking indeed for BTC and ETH ETF's with lower prices that are optionable.
I don't know about options on the ETH ETFs, but iBit would be a good one to check out. could be a good way to start and earn some yield some BTC.
I already hold IBIT in my IRA. The premiums are not good where I am comfortable at. The volatility makes it a little fast for my blood!
Yeah, MSTR has gotten me a few times with the volatility. Yeah, the iBit premiums have dropped a bunch since I looked last.
I have been playing MSTR on the options selling strategy and have absolutely KILLED it in the last few months. Still have 200 shares I am playing on, but if I end up getting executed, that's fine because I want to go back to poor man's covered calls so I am not having SO much of the capital taken up on a couple of contracts. Need to spread out the risk a bit so I am not so heavy in that one stock. Will probably move that strategy over to NVDA and TSLA.
Went ahead and sold a short term covered call for this week at 56. We'll see.
What are your rules for setting your covered calls? I always watch supply and demand zones and also heavily rely on the delta. I generally pick something in the .30ish Delta range. Basically the market saying there is a 30% chance of this executing.