I guess you have not been reading my posts. I have not invoked magic. I have stated the mechanism by which covered calls make money and that includes picking the right stocks.
- Stocks that don’t go broke
- Volatile stocks that bounce back
- Stocks whose call options produce the highest returns
Where, when, or why did I post about magic? Does Merlin work for you? ![]()
What I have been thinking about lately is never selling, just follow the stock’s volatility up and down. The recent downdraft was an important lesson in this regard,
- Be slow in rolling down - protect capital
- When rolling up & out - minimize premium loss
- If the stock skyrockets - consider letting the calls expire
All this is based on covered calls, the risk profile of naked calls is waaay too high. Above all, protect capital.
The Captain