/biz/ - Business & Finance

Monday

Buy 300 shares of AAPL at 130 (39k)

Immediately sell a weekly covered call 1 strike OTM (131.25 strike) for 3.50.

Stock goes up, you get assigned and collect 1425 in premium, and you do it again next week.

Stock crabs and stays below 131.25, you collect 1425 in premium and do it again next week.

Stock drops and you keep your shares, but overall your portfolio goes down if it drops more than 3% that week, but you effectively reduce the cost of your holdings.

Stock drops like a rock and you get raped.


Is there any reason why I shouldnt start doing this....aside from the fact that im "only" making 1000-1400 a week on almost a 40k investment?

>>21235266
I remember how Hillary had a 99% chance of winning last time around according to all media outlets except 4chins