Where's the Beef in AI?

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.

  1. Stocks that don’t go broke
  2. Volatile stocks that bounce back
  3. Stocks whose call options produce the highest returns

Where, when, or why did I post about magic? Does Merlin work for you? :winking_face_with_tongue:

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,

  1. Be slow in rolling down - protect capital
  2. When rolling up & out - minimize premium loss
  3. 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