Aug 18 in Monthly passive income
5 Methods To Select Covered Call Strike
I found this very helpful, so I thought I share how to select a strike price for a covered call (credit to “Options with Davis”):
Method 1: With a low Delta of 10-15 (10-15% probability being ITM at expiration)
Method 2: Above a resistance area
Method 3: When SRI is above 70 (Stock is “overbought”)
Method 4: Expiration date is BEFORE earning call
Method 5: Roll when price reaches your strike (50 Delta)
How many of these do you use when you sell your covered calls?
I will definitely incorporate them more deliberately.
If you are interested in learning more. Here is the link
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5 Methods To Select Covered Call Strike
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