Should You Sell Calls?

On tastylive, Tom Sosnoff and Tony Battista discuss rolling options for improved delta exposure amidst increased volatility, while announcing new shows and expanded FX market coverage. Underperforming key long positions in Intel and Boeing impacted returns, highlighting the importance of strategic options trading.

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[notseekingconverts]

If I want to own the underlying, covered calls will help pay margin interest for more of underlying I want to hold.

[Andrew-pmuj]

I just sell what has positive expected value. Selling calls seem to be the positive EV play in recent months.

[alphabeta]

2:00 *Win rate on 20 delta calls vs 20 delta puts: 64% vs 85%*
3:55 Selling 20 delta calls essentially breaks even over long period of time

[richardthorne]

These guys are the best. I am predominantly a long term dividend investor that sells covered calls strategically much further out in time and at safe strike prices and I have only had one long-term dividend stock called away. It’s been an incredible strategy for me in my retirement years. I bring in close to $60K in dividend income and I’ll do around $50, 000 in realized options income this year in which a great chunk was covered calls …I also run a separate wheel strategy in my portfolio margin account which represents around $20K of that amount. But i have only used 5% of my buying power b/c of the lower VIX.

[PEOdysseus]

you know you guys could make this more visual for us to learn more - show the selling call scenario vs strangle, etc.

[MStar]

So I guess calls are only really or clearly good when it's a down market or sideways? If that's the case yet we know the market goes up mainly... Then why even bother? I guess for those that need the monthly income for living??

[djayjp]

Pretty funny how often Tom contradicts the studies lol. He said the results don't include managing early, but that's not the case.

[Commysumngtus]

Selling Puts scare me in this topped out market. Stairs up. Elevator down.