Currently long on all my positions about 25 total contracts on various stocks/etfs – mostly big tech. Want to create cashflow so I’ve been trying to find the balance of collect as much premium as possible while not getting called away. Typically it ranges from .10 -1.00 per contract on weeklies and have yet to get called away. Have been doing this for about 2.5 years and making an extra 5-10k a year doing so.. have been called away about 4 times in total and stocks came back down and I bought back with no missing gains.
What am I missing? Feels like a money printer so far.
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Take this shit to r/thetagang
Depending on your risk tolerance, this is a fairly good strategy. If you are satisfied with the return and the risk, keep it up.
Convert your thinking to projected profit per day or premium percentage of investment. Aim for 4%. Also, $15k means nothing if you’re spinning $500k to do it. Again … percentages. Hard to impress traders with amounts. Relatively is king.
>You’re not missing anything, you’re just lucky. So far, your strategy has worked well because the market has been rising. But if the market turns downward, you will likely get called away on your positions and miss out on potential gains.