Serenity：Lesson on Covered Calls for passive compound return: Put selling was for advanced swing traders…

推文摘要

这条推文含有财经/市场相关信息或标的符号，核心内容是：Lesson on Covered Calls for passive compound return: Put selling was for advanced swing traders, but this is for everyone. PLEASE LEARN THIS: If your port $300k -> $1M+: ☁️It's an extra IPhone 17 Air+ /week. If your port < $300k: It's a few hundred a week. Ex…

AI 财经深入分析

原始内容

Lesson on Covered Calls for passive compound return: Put selling was for advanced swing traders, but this is for everyone. PLEASE LEARN THIS: If your port $300k -> $1M+: ☁️It's an extra IPhone 17 Air+ /week. If your port < $300k: It's a few hundred a week. Ex. $NBIS ($180 strike, $1k+ profit/week, $1.3M shares) This scales up with portfolio size, but you can only do this with smaller portfolios because of liquidty issues when you get to Nancy Pelosi. Step 1 (Photo 1): Look at option chain (photo 1). Click 1 week expirty (eg. October 10th). Step 2: Look if premium is worth selling or not. If i have 10,000 shares of Nebius. Divide that by 100, so 10,000/100 = 100 covered calls. You can now sell 100 CCs so at $180 that's a .12*100*100 = $1200 EXTRA a week for your shares basically for strikes that will almost never hit. (I believe NBIS to $200+ but not in a 5 trading days). Step 3 (photo 2). Look at IV = an estimate of volatility. Usually higher the better for premium. You need to understand WHY though. For regular weeks with no major news, high IV is good. If IV is jacked up and it's earnings day, throw this post out the window. Step 4. Learn this yourself, how much a stock usually moves a day (on a positive day). NBIS usually 6% a day max on a good day (not including random MSFT deal). There's 5 trading days left in the week. Do 6 * 5 = 30% is kinda max expected increase for the week. Now choose a premium beyond that. In this case, 35-37% break event. So in this case if you dont want your shares to called away, you can sell $170 (if you don't care about long term capital gains as much) if you plan to hold 30% + 7% buffer room so $180 calls. Even if you don't know how to read IV, it's usually the same rule of thumb above. Amazon for example doesn't really move more than 2-3% a day, so IV is 33% (lot lower). Step 5. (Photo 3) Choosing the limit price is pretty important, usually it's around the middle of the two strikes but you can look at the last trade. And then if you have 10,000 shares, you can make $1195 a week off it. I personally prefer doing this on Fridays, or Tuesday/Wednesday on a rally. But this is something that doesn't really require too much timing if you're choosing something really OTM. Risks: 1. Sometimes an unexpected event happens like a $17B MSFT contract and it blows past your CC. You might miss out on profit, but if it goes up 38% in a few days, I genuinely don't mind much and don't complain about profit. 2. If you expect news to happen like with $IREN probably skip out on selling CC's. 3. Have the shares available don't sell naked. _ Same thing applies to every other stock, just learn how much it moves every week, and sell a strike way beyond what it would normally move. Obviously the premiums aren't the same across stocks, you'll make more off this with high growth stocks. They will decrease a lot if you just hold SPY. I did my best explaining it lol, sorry if it's still complicated or I missed out on some disclosures but this is the general rules of what I do in my head most of the time. You can try paper trading Covered Calls for a few weeks if you're unsure.