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/biz/ - Business & Finance


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23843750 No.23843750 [Reply] [Original]

>1. Buy any stock that's not total garbage

>2. Sell 1 month in advance covered calls on the stock

>3. Repeat every month

You'll find the average return for doing this is 40% annually.

>> No.23843772

>>23843750
thank u kind sirs will do with my pajeetuscurrynigger.finance

>> No.23843839

Post your transaction history faggot

>> No.23843938

>>23843839
I just figured this out ngl but the math makes sense. Here are the scenarios

>1. Your stocks decline in value

You lose money but you lose less than you would have otherwise if you were not selling covered calls

>2. Your stocks remain stagnate

Your covered calls generate return of 40-50% a year just being continually sold and expiring

>3. Your stocks rise in value and the calls get exercised

You lose out on the capital gain from the where your stock price is and the strike price, but you still collect premium from the options AND have your stocks sold at a capital gain.

If options 2 or 3 happen, you will repeatedly profit.