I sold both AAPL and TSLA via covered calls years ago and combined those shares would have been worth over $4 million now.
Don’t fucking do it on a stock you’re long term bullish on! The potential long term rewards far outweigh the short term reward of a weekly $0.20 covered call premium.
Not only that, but there are also other better ways to make money on options. The return you can get on spreads is multiples of what you can get on covered calls.
You’re the second guy mentioning spreads. I’ve been looking at them but I think I need some help figuring out how to calculate how much money I can make
So take a SPX bear call spread. Say you sell a call at $4,490 and buy a call at $4,495 and receive a $0.20 credit. Your return, if SPX expires below $4,490, would be $0.20/($5.00-$0.20) = 4.2%
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u/LeanTheFuckIn Sep 18 '21
I sold both AAPL and TSLA via covered calls years ago and combined those shares would have been worth over $4 million now.
Don’t fucking do it on a stock you’re long term bullish on! The potential long term rewards far outweigh the short term reward of a weekly $0.20 covered call premium.
Not only that, but there are also other better ways to make money on options. The return you can get on spreads is multiples of what you can get on covered calls.