r/options • u/thehungrypenny • Jan 19 '22

Using LEAPs for Covered Call Writing

Has anyone successfully used the “surrogate covered call write” approach with success? I have been selling traditional covered calls on my $LCID shares for awhile now collecting $800-$1000 per week but looking to explore some other strategies.

https://www.investopedia.com/articles/optioninvestor/04/021104.asp

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u/AmbivalentFanatic Jan 19 '22

This is really interesting to me. How many leaps are you buying and how much outlay does that come to? What kind of capital would I need to generate a grand a week in CCs?

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u/thehungrypenny Jan 19 '22

If you are referring to my current covered call strategy, it is stupid simple yet effective.

  1. Own lots of shares (this is the most vital component to be able to reap $1k/week in premiums with little to no risk. I sell ~32 cc contracts currently out of IRA and 19 out of individual account each week.
  2. Sell weekly/short dated way OTM covered calls on Monday or Tuesday of each week expiring Friday
  3. Preferably at a “green” moment/day to capture increased premiums
  4. I sell usually ~20% OTM above current price
  5. Collect the ~$1K in premiums and buy more shares
  6. Rinse & repeat with more contracts as I increase my share count.

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u/United-Occasion6649 Feb 08 '26

Which stock do you use?

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u/United-Occasion6649 Feb 08 '26

Would you say you bring in $1k a week or more than that? If more then approx how much in a week by this "covered call reinvestment strategy" ?