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.
I normally go in the 0.2 ish Delta range, but I don't really have any rules. Just wing it.
I know, I know. I really should get more formalized on that.
I used to be primarily a dividend stock holder and would run something akin to the wheel strategy, but switching to more volatile stocks is a bit foreign. I basically decided this past year to put my IRA all in crypto-related entities. Started out with ETF's. Premiums are definitely better though.
I don't have enough money in the IRA to roll on MSTR (unless the introduce mini's), but I just thought today that I will see if I can find a list of MSTR copycats that may have lower prices and try on one of those.
Have a feeling it will take a while to get used to.