How To Make Income Selling Covered Calls Properly

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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[ClaraAnke]

Nobody can become financially successful over night. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals.

[personaltrainersg]

My Strategy - I have large cap stock that I want to keep if possible. Goal - low risk income.
First, use chart to read Weekly Bollinger Bands & Daily, Weekly, Monthly Support/Resistance Levels
- If in upper range of BB & at resistance - Sell 30 day higher delta covered call (0.25)
- If in bottom range of BB & at support - Sell 30 day lower delta covered call (0.15)
- Take note of earnings. Sell options that expire before earnings.
Did I miss anything?

[liammateo]

Hit 200k today. Thank you for all the knowledge and nuggets you had thrown my way over the last months. Started with 14k in last month 2023

[LeTigre]

I think expiration date is a function of checking that your gaining time value premium in a linear fashion for each week you go out. I’ve found sometimes it’s best for 1-2 week expiration because going 3-4 weeks out barely gives any extra premium. Just something to evaluate each time

[jonowens]

Henry, at the beginning of your video, you discuss selling call options, but your screen is set to buy calls. This would most likely bring the premium collected much lower than shown, but it’s still valid content for today and the future. Continuing to show how we should repeat the covered call process is important, just like in the wheel. Thank you

[genericwatcher]

What people don't realize is that the money you make on these per option is $50-100. So unless you own LOTS, you are making very little and you aren't going to get rich. Not saying you cant' do this over and over and over and over and it will add up... but just want to keep people's expectations realistic.

[dogegamer]

The problem with covered calls is the only ones with decent premium are the high vol assets like Tesla, Bitcoin Miners, tech small caps. Then you end up blowing your account when you get called away. It's better to just hold the assets and take your own premium in interest payments at the end of the day.

[vijaysaiveerapaneni]

Love your videos. Way different compared to people who try to sell something in the name of quick money. Very educational. I have a good amount of experience in stock market but I have never made a consistent returns. Your strategy seems interesting. I tried out a couple of times, and it worked. I need more experience to be able to say if it's gonna work in a long time or not. However, my question to use that you do make YouTube videos, trying to educate people and make revenue out of them. Can put a small video of how much YouTube pays you for the number of subscribers or the viewers? Talking about transparency will help a lot in people trust in your videos.

[Brigadorski]

I like NIO at $6-7. I think we will see NIO at these depressed levels in 2024, Q2-Q3. I would love to sell calls on NIO. I remember when it was in the 60s, I flipped NIO for 2X when I bought it at $30 some time in 2020.

[Brigadorski]

Ok, I fomo'd. I took 100 shares of NIO at 9.20 and sold the CC at the 10 strike for 0.1 credit expiring this week.

[sfavorite]

Do you sell options in a company name? Or, do you sell in your personal name? Salute

[hnguye]

Nio is definitely not a safe stock at all. I learned my lesson

[charlesjames]

I have to cut you off just 2:30 into your video. Selling CCs is NOT a bullish strategy. It`s not. The ideal scenario for selling CCs is the flat-to-slightly-bearish direction. Why? Because the flat part insures that the NAV will PROBABLY not rise above your strike price (if you followed recommended Delta choice of 20%ish) and cause your shares to get assigned away. Slightly bearish because, slightly bearish is at least not falling knife bearish, and as long as you keep collecting option premiums you continue to lower your cost basis, and so you can handle slightly bearish because overall you are stil in the black. The bullish strategy is NOT doing CCs at all, it is owning the stock, or the index, so your upside potential is not capped, as it is by definition when you are doing CCs. Your 'double bottom' thesis as your downside protection also was not valid, as NIO is way down since your video, to 6.08 as of 2/15/2024. Good luck in your trading.

[zaheraldik]

confusing video plus NIO is horrible stock to sell covered calls, it is in free fall .

[entertainmentinternational]

Ill tell u something i had to do which was great and i didnt relaize it.. i was stuck in 8.50 cc and price is 1.45 above.. i made alot of premiums.. i then rolled it out made 5k more to 9 strike..then it went up i rolled it back to 8.50 collected 18k more.. then it traded sideways and on a dip i rolled it out same strike 4 weeks 8.50 and picked up another 24k.. i figued if im stuck at 8.50 i pulled out extra 50k in premiums with same 8.50 strike... o well... if this pulls back 1 dollar and i can buy them back for cheap it would of been best move i did....and im in 8.15 a share.. never thought id hope for a pull back..lol

[kuanhhuang]

Thanks Henry. It looks like it's time to trade OTLY again. I sold 10x $1 Put a couple weeks ago. The premium is juicy.

[lcbtcethada]

Henry - when do you roll a SPY covered call option that is over your SP? I’m thinking of rolling my SPY $460 ending this Friday today vs later on the week since market is green. Thoughts?

[dedysetiadi]

try itm covered call and a call credit spread on top of that. supercharge income!!! 3-5 week expiry. let mek now what ya think. if youre shorting the underlying do a itm covered put and pcs.

[Fragty]

do you sell the covered call in the same order (stock leg) or do you open the positions separately?

[kakitling]

Thank you so much for your video, you opened a door for me to earn some passive income in my retirement. I have one question about selling cover call. If I sell a cover call at $10 which expire at the end of next month, from now and the end of the month, if the price goes higher than $10 in the middle of the contract, will my shares be called away on that date or at the end of the month?