/biz/ - Business & Finance

>>21885620
Well in theory all options are priced perfectly and you can never have an edge buying or selling any specific one and you could throw darts at a board and break exactly even after a thousand rounds. That's the theory.
In reality I have a bit over a thousand shares of SOXL. Every month I sell 3 covered calls a bit out of the money. If the price moves high enough that my covered calls are ITM, I buy them back and sell 5 covered calls a bit further OTM. If those 5 get breached, I buy them back and sell 10 even further out. The 10 have never gotten assigned and I regularly make a few grand a month gravy doing this and I have no intention of letting my SOXL go until we enter another sustained confirmed market downturn. Also when the month starts to wind down if I'm still only in the 3 or the 5 phase of my covered call system I'll usually go ahead and sell the rest on the assumption that I won't need them set aside to rescue the others.
So there's the theory and the reality of how I do it.