Covered calls option strat
First I only like selling contracts against stocks I would like to continue to hold.
My stratigie is first to chart the underlying for support, resistance and gaps. Using those levels I try to pick a strike that is above current price a garage and generally around 10% for higher priced stocks ($50 or more) or 3-4 strikes out of the money. This way I can ensure profit from the underlying if it does exceed my expectations in a manor in which I do not mind selling. If they do not exceed I can be thankful for the premium collected.
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WesWes26 : Where did you come up with this strategy, and how long have you had it for? I'm just starting to learn about the market and am interested in some long term trades as well as options trading.