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Re: chipboarder post# 220977

Friday, 02/11/2022 3:50:51 PM

Friday, February 11, 2022 3:50:51 PM

Post# of 232839
Buy/write strategy for a rising market says buy the stock, write an “out of the money” call with a 2-3 week life and ride til the expiration. If it does nothing…pocket the premium and repeat, if it increases and you get sold out, pocket the premium plus a few points to the strike price and if it decreases the premium provides a “cushion” .buy the call back and roll downward.

Two out of three outcomes make money and the third is somewhat hedged (and 3 weeks is short). The time value erodes quickly in the last few weeks and that is what you capture.




https://www.tastytrade.com/concepts-strategies/covered-call

https://www.tastytrade.com/shows/market-measures/episodes/comparing-covered-calls-01-07-2022

okpj
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