What Is The Best Strike Price To Sell A Covered Call?

In this video, I'm going to show you how to find the best strike price for selling covered calls. Selling covered calls can be a great way to generate income and today I'm going to show you how to do it like a pro.

Today's Video will cover:
Intro 0:00
So you acquired shares 0:22
How to compare strike prices 1:08
Why a higher strike price may help 2:38
How to calculate the % move of a stock 4:40
Why you shouldn't choose the highest strike price 5:40
The final decision 7:50

Recommended Links & Videos:

#StockMarket #OptionsTrading #TheWheelStrategy

[dc-wpoc]

This is the beauty of the "pause" and "replay" buttons. I can go over this presentation again and again until the concepts become clear. Thanks again Markus.
Appreciate the pace of your delivery, the clear diction and the lack of juvenile distractions.

[westmime]

Started trading the wheel strategy this year in may and i am up 47% atm with only 1 negative week. Loving the strategy and loving the videos, cant thank you enoughe.

[Sifatullahsolo]

Hi Markus,

Just wanted to say I love your videos! Your explanations are top-notch, and watching the trading screen in action is a game-changer. Keep up the great work, and thanks a bunch!

[krisnelson]

Love your videos Markus! I've learned a lot with how well you explain everything, and really love how you show us some trading screen time! Keep it up! Thanks.

[PatrickAlexanderThePilot]

Interesting approach, I do the same calculations by looking at Delta and decide on the possibility of an assignment!

[freddydee]

Thank you so much for this training.
It's helping make some cash in this volatile market.

[jboy]

Very good video & explanation Markus! Your software does a great job!

[siriphanpoommala]

hi, what broker are you using to compare or show what strike price is higher or lower to choose ?

[abuyusuf]

You always give good info. I have a question, if I am under PDT rule, I can only do 3 day trades in 5 days. So my question if I buy stock today and sell them tomorrow. is that considered 2 day-trade or 1 day-trade or no day-trade at all since I buy and sell in different days? I am very confused

[simonjons]

Unfortunately, on the 26th, tpr dropped to 35.5. Interesting to hear what you did with that. What is the reason to provide the example with the unsuccessful result?

[fancycavegaming]

Could you cover some of the calculations you might use to handle multiple assignments that end up triggering margin usage? So let's say I had five positions closing this week on a 250k cash 500k margin account and 4 got assigned because the overall market is down. So an approximately $400, 000 position spread across 4 good companies; say google, Blackstone, Microsoft and Fedex, all are at good support levels and can generate covered calls at or above the strike price.

[Pieter]

TPR closed at 35.35 on 8/26 and then dropped further to below 35 on 9/1. Curious to hear what you do next in terms of strike price and DTE for subsequent calls? Assuming you don’t want a strike price below the cost base of 37, do you then go out further into the future to still collect at least a half-decent premium? Asking this not to be critical of the wheel strategy but because I’m trying this strategy myself and often end up in a position like the current TPR situation in your example.

[singoptions]

based on what transpired between the recorded time of this vid and now, Markus should still be holding the stocks and selling calls against it. cheers.

[rosariodipetta]

In this example is good to sell calls at 37 because you get a good premium and you have mpre chances to jump out of stock..so you can restart the process and sell puts for the next week

[saimiride]

Hi thanks for your greats videos, I am following your advice very carefully. But I have a question, nobody talks about a strategy that seems to be very powerful, it is a kind of poor man's covered call "inverted " Instead of buying deep in the money, you sell puts deep in the money (With a maturity of more than one year) and you sell puts OTM to protect your premium. You receive a big premium at first and you protect it by accumulating small premiums. So we lose less money in extrinsic value and you lower your breakeven significantly, what do you think of this strategy? Thanks

[dc-wpoc]

Was surprised to see the Annualized Premium of 36% was preferred over the Annualized Premium of 73%.
Is the wheel strategy applicable to new traders with much smaller accounts and focused on less expensive stocks?

[rameshsubramanian]

Hi Markus. At the end will you keep the stock collect the premium and again repeat the covered call or sell the stock in hand also.

[johnporter]

Nice video ! How does Delta play into your planning?

[PatrickAlexanderThePilot]

Do you have a video on "what's the best price to sell secure cash put"?

[danielstapler]

There's a saying: option writers/sellers eat like canaries and crap like elephants.
Lots of small profits but sometimes a big loss.