Selling Options for Income Part Deux

[captainccs]

@dxmas413

I don’t know if anyone even looks at this board anymore. Since I originally posted my updates here, I decided to do so again. As a refresher, I originally started an experiment after reading some posts on selling covered calls by the Captain. It was fairly successful… after 12 months(9/20 - 8/21) I was up 65% and it peaked at 79% after 14 months. Then came the FED!!! After dealing with falling knives for 2-3 months, I closed up shop before I lost all of my profits. I stayed out of options for the remainder of 2022. However, I didn’t stop thinking about them and decided to start up again once the Fed was finished tightening. Well, I jumped the start a bit and started up at the first of the year. I did so with a significant change to my strategy.

Unfortunately your formatting got screwed up.

I no longer post at NPI because the board died of the political disease.

Initially I also sold puts but they turned out to be riskier than covered calls. Your strategy sound fine but one has to realize that bear markets do screw it up. I now only sell covered calls but check to avoid falling stocks and earning season that can bring nasty surprises. Since i last posted at NPI I have further refined my Covered Call Selector app and i’m getting good results but beware bear markets.

I’ve been posting at Macro Economic Trends and Risks (METaR). Have a look…

Covered Call Selector Update

The secret to optimizing a covered call strategy is locating the best calls to sell. One might have a large number of stocks to play with, at one time I was using 70 stocks, and each option chain has dozens or hundreds of options [expiration dates and strike prices]. 70 stocks might have over 7,000 possibilities and one only wants less than a half dozen. Clearly eyeballing the option chains is not a viable solution. At first I was using spreadsheets to evaluate individual option chains and that …

The Captain