Weekly Options with Covered Calls - a Winning Combinations

Weekly Options with Covered Calls – a Winning Combinations

Selling Covered Calls with Weekly Options: A Low-Risk Income Strategy  

Weekly options allow traders to sell covered calls at a much faster rate than traditional monthly contracts. By utilizing this accelerated time frame, covered call writers can potentially generate significant income over the course of a month.  

For those unfamiliar, a covered call involves selling call options against shares of a stock already held long in your portfolio. This caps upside potential in exchange for immediate premium income received.  

Weekly covered calls work in the same fashion but present more opportunities. You can sell calls each week against your stock holdings, aiming to collect premium on 3-4 contracts per month rather than just one.  

This compounds your income generation in a short period. Plus, the quicker time frame means calls decay faster due to theta, increasing your probability of profit.  

The downside is reduced time for your shares to be called away at a higher price. So focus on stocks expected to trade sideways within a tight range.  

Tech, consumer staples or blue chips tend to suit this strategy well. Watch for high implied volatility (IV) too, since that inflated premiums.  

Avoid attempts to time the market – always sell calls above your cost basis to limit risk. Close positions before expiration for maximum flexibility.  

By maintaining a portfolio of weekly covered call positions over time, traders can achieve consistent, lower-risk supplemental income from option premiums. The accelerated timeframe makes this an excellent strategy to consider.  

arrow-red-3

optionstradingsystems-owpmotherpop

arrow-red-3

Enter your name and email below to get started now…

trade for a living

Discover approaches to trading options that you can use in formulating your own business blueprint, your own trading business operations manual so maybe you can start trading for listening too.

  • Learn how you can use weekly options in a smart way to develop your own additional average weekly paycheck
  • Find out how you can use and options combination strategy called a credit spread to pluck off “free money” from the options market
  • Learn about weekly Binary Options on NADEX and how you could potentially make a superior return each week
  • Discover how to read Price charts in order to discover patterns of profit.  Find out how to cash in on these patterns of profit over and over and over…
  • Learn how Reading trade volume can help you determine the start of a potential big move
  • Find out how to trade the big move setups more boldly with our “No lose” strategy in options
  • Find out how to potentially produce superior investment returns in a consistent way year after year by selling options instead of investing in stock
  • Learn about our strategies for hitting big home run moves and options from week to week
  • See how you can use special indicator to show you when to get in and to get out of an options trade
  • Discover how you can stack Weekly cash flow Systems to produce potential average weekly paycheck cash flow powerhouse centers
  • And finally discover the seven strategies for trading options from home for a potential very good living.
  • Now you’ll be able to pick your way of trading options so you can start trading options smartly right away

$7

addtocartnoppal1

Cheap-Options-Newsletter-Weekly-Options-Mastery.png
CHEAP-OPTIONS-SIGNALS.png
Spread the love

Similar Posts