admin Weekly Options Covered Calls Strategy
Below is a quick video I did summarizing using covered call strategy with weekly options.I got cut off in the video at the end but I was done and didn’t want to re-record:)
Summary,
- Weekly covered calls strategy can generate decent premium vs. traditional monthly covered call strategy (rough rule of thumb is 2x income vs monthlys)
- Can use weekly covered calls to be more flexible because you are realizing the time decay quickly so can move around around on your strike prices each week for the covered calls you are selling depending on where the stock has moved.
- Selling covered calls is a good strategy for paying for a protective put if you have gains in the stock. Pay attention to volatility in the put premium you are paying for and buy far enough out so you dont have fast time decay on the put.
- Covered calls with weeklies can also be be used if you don’t want to buy the stock you could instead be long a farther out far in the money call option and sell weekly calls against that long call. Its much less capital tied up just being long an in the money call vs. 100 shares of a high prices stock.
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