The Wheel to Strangle
What I like to do is slowly enter trades I like using the wheel option strategy. Selling small position Cash Secured Puts until assigned and then flip it into a strangle where I sell covered calls against the shares I was assigned while also selling more cash secured puts to better leverage myself against market direction of both ways. For instance, with the ongoing conflict between Russia and Ukraine, I believe oil prices will continue to rise with the continuation of a low supply high demand on oil. Therefore I use the penny stock $Houston American Energy(HUSA.US$ for my strangle strategy as the premiums are high paying and if I was to stay within the range of both the put and call strike price, I get to keep both premiums without having shares assigned or called away and can re-roll my strategy to continue to bring my cost basis down and make a passive monthly income.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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dustinlint : I can't sell covered calls
... moomoo shows it as a short position.... I talked to customer support and informed them I have 100 shares of xyz... I want to sell a covered call... sell to open... they didn't understand... no I doubt wheel strategy or any sort of strangle or straddle will work here.....???
KiiNGxOP dustinlint: Yea I think they misunderstand what a covered call and a cash secured put is. I tried also contacting them and just found it easier to move my funds over to thinkorswim, but I do enjoy the charts and community here significantly more!