Sometimes in trading, you have to take the opportunities as they come!
Caught a dip and just rolled an MSTR contract that expired Friday for 370 up and out to expire the 17th at 380. This not only secures another 1000 profit if it sells on the 17th, but I also made nearly $600 for rolling the option!
And 5 minutes later, that opportunity would have been gone! It pays to pay attention to the markets!
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.
Definitely you have to take the opportunity as it comes