/biz/ - Business & Finance

>>22593511
Yes, covered calls aren't a panacea but I'll just tell you what I do and you can give it some thought. I own a lot of SOXL and sell monthly covered calls. I start by selling 3 calls usually 30 or 40% out of the money. This yields something like $1500-$2000 a month depending on current IV. If the price of SOXL moons and my covered calls go ITM, I just roll them up and add another couple of calls to take care of the loss so now I'm short 5 calls. If it moons even more I will roll those 5 calls up and add another 5 calls for a total of 10 short calls. These 10 short calls are so ridiculously out of the money compared to where the month started that should they happen to get assigned then fuck it I probably doubled my money that month just on the appreciation of the stock so it's time to sell and take a breather anyway. This has never happened.
Now imagine it's a normal month and we get close to expiration and my 3 calls are way OTM. I go ahead and sell the other 7 calls for a bit extra premium and everything expires worthless a few days later. Wash rinse repeat next month.
I'm not saying this is the Holy Grail perfection but I've backtested it, walk-forward tested it, etc. to the nth degree and it has failed none of these. Even last month where the whole market just mooned hard out of nowhere I made money on my calls.
With the premium from these calls I buy more leveraged ETFs. Current favorite is FNGU