THANK YOU Mark!!! 🙏🙏🙏 You have changed my life. I had thousands of shares of mstr and what you showed over the past weeks has taught me life changing lessons. I owe you bro
Totally agree! This has added a whole new strategy to my repertoire and I do use it regularly now on volatile stocks like Tesla and microstrategy. Thanks Mark, you’re the best!
Excellent video , I bought KWEB at 90s back in 2021 and rode it down to 20s , selling calls every opportunity I got, I walked away with +15% return in 2024 on a stock that went down 70%! Selling covered calls are awesome!
Mark, what a great video series that you created on MSTR and TSLY! I have watched all of them! I really appreciate that you provide the viewers with your thought process on when to roll and where to roll to. You have really proved to me that you win in the cashflow game by focusing on time value (extrinsic) when selling Calls to collect The Juice! I know longer have doubts about selling In The Money Calls as long as I review and focus on The Juice. Thank you for providing the entire summary of your MSTR trades!
@@lcdrpost thank you for that deep compliment. I told you that if you stick with me long enough, you will change how you see this. Seems like you did/are…. Let’s keep it going.
You keep mentioning $543 but I think you have to use your entry point of $473 or so to compare things. If you had bought 700 shares (I think that's where you started) with cash and just held it until today you would be down about $150 per share or $105,000 total. By selling calls both in the money and out of the money you're down about $10,000. So you have made around $95,000 more than just holding the stock. i can't wait to see what happens at the 6 month point! Keep up the good work Mark!
You and I both. Also, I did mention (and put on the screen) where I got it but I talk fast so you may have missed it. I gotta slow down......But yes, you get it. I just keep chipping away at my basis. Eventually it will be free but the stock has to stabilize in here somewhere, right?
Thanks for the update and scorecard! I’m having a difficult time tracking extrinsic value in IBKR, so I’m using TOS to check before I trade. Also having some difficulty keeping track of where my P&L is on the position so I’ve got to work on that. In the meantime I’m short covered calls scattered from 280 to 330 that expire next week. I’m considering rolling the 280 up to 300 as the time value on that position gets lower and lower. You’ve introduced me to a totally new way to take advantage of the volatility. I love it. I just have to keep reminding myself that I’m really trading the time value…. It will always go to zero
Just found your account … need to watch your videos on this!! Brand new to covered calls. Bullish on MSTR but making money on my long position while it goes down sounds amazing 🤣
Thank you Mark!!! This whole MSTR series is a life changer and I have learnt a lot. i have brand new perspective on the covered calls and the JUICE!! Question, if I have stocks of MSTR instead of LEAPS, could I still sell ITM short calls?
Finally bought enough shares from selling puts on MSTR and others and buy shares of MSTR . I own 115 shrs. Sold a covered call at 400 bought it back ar 5 dollars and rolled it out today sold the 420 collected over 200 dollars. Expires next friday. My plan is to buy shares, sell calls and way OTM puts. 😊
@@coveredcalls yeah I know. Still a little apprehensive. It was hard enough to get enough shares to do a covered call. I'll go lower on the next one.🙂👍
I just made a few thousand off of MSTR. I have done covered calls from 360 to where we are now. I watch BTC and sometimes buy back a little too early. I can already tell you have to have patience. if it doesnt go up TOO much TOO fast, then its fine to be in a loss and collect the TIME decay. This has allowed me to not maintain my account balance while going from 360-325. I am only doing this with 100 shares of MSTR (bought at 300) to cover. Just trying to understand the game with not too much money
Mark, thank you for making all these educational videos. I'm using it and although my positions are down, the premium I collected during made them profitable and I still have lot's of time to trade them. Thanks again
Great videos Mark. What are you thinking for your next covered call for MSTR? Big monthly expiration on Jan 17. What will you look for on Monday? Thank you as always.
@@tednugent8365 I believe that the 17th news is already priced in. I am staying with my strategy of being safe because the market and stock are not acting well.
Great video! When do you know to roll out of a synthetic short that has run up on you? As I sold the 1/10 280 - I recovered some by rolling down to 267. Hindsight if I had held the 280 time decay was my friend.
I am starting to conclude that with something this volatile, trying to wait until closer to expiration (more often than not) may be better. Best of luck.
Thank you very much for all the MSTR video's. I have been following you since you started. I wish I knew this 2 years ago when my leaps got away from me. I also want to mention that you have made more money then what is in your spreadsheet by about $2,400 due to the first light blue 400 strikes. The math does not come out correct, should be closer to $11,390. Thanks again for the videos
Thank you Mark. I have gained a lot of value out of your videos. Question. Just looking at your last trade, if you rolled down to 330 again, then the stock goes up to say 350 again. when you roll up again does tht mean you pay intrinsic value twice while the base position only gains that value back? Thank you for your time and effort in educating us.
It is a long term strategy. Just keep on earning that time premium, and in a few months it won't matter. Watch the full MSTR series where you see some ups and downs. You can take his course too which goes into the details a lot more.
Mark, on 1/6 when you rolled up and bought back the 320s would it have been better to go out another week and sell the 1/17 357.50s to help offset the buy back amount?
Hi Mark, New to channel. Really appreciate your work - learning a lot. Q: I have 400x MSTR shares, how much cash/cushion would you suggest to have prior to selling CC’s ATM/ITM? Much appreciated - from Sydney, Aus. Josh
Well, I could and I have a MsTR coming out this weekend of my roll in the money, but I am also trying to trade my plan here, so cannot just make in the money videos :) But when I can, I will and I do. Thank you.
Hi Mark, so if I do a MSTR Buy Write on Friday for 1 week out, the Premium received is 4.4% for the first call option just OTM ($330 stike). Lets say we don't nail it perfectly all the time and only get 2% each week, rinse repeat 52x / year that still works out to ~180% gain in a year. Im I missing something? If it gets called away, then sell a cash secured put the next week out at 1 strike OTM ?
@@coveredcalls Thanks ! I've been contemplating this since March, but have been selling OTM calls that were too high and more worried about losing the stocks, and missed out on all the juice over the months.
I ended up rolling up when it was 370 or so. I rolled half to 335 & half to 345 largely because my account was sending alerts. I wish I didn't of course, but whatever. Anyway that roll required roughly what it required for you. However, that was 60% of my cash. The overall value of my account went up slightly, so not worried about that exactly. I just realized that if we had a longer run up, I wasn't quite prepared. I was wondering if you have any general rule(s) of thumb regarding cash to stock ratio for a crazy stock like this or TSLA? Thanks Mark.
Quick question if I may. If you own a good stock (AMZN, MSFT) that is 100+ points above where you bought it. Unless it's threatening your buy point wouldn't you just sell at the at the money all the time? Or would you sell ITM/Slightly ITM in a Yellow and or Red Market (stock) to capture the intrinsic value along with the Juice? Thanks again!!
In red markets, he sells more ITM. In green he sells closer to or ATM. The more ITM, the more protection to the downside. Things are pretty darn red at the moment. Best of luck.
So far, no reason to end the trade, but if it doesn't get back above the 50-day moving average, I will consider it. Also, I can sell deeper and protect to the downside.
I roll both base and short positions. See the TSLA video that will be out in a couple of days and see the roll I did on the base earlier in this series.
I love your videos but why sell to open a covered call ITM and not OTM? ITM may be a higher premium but OTM has a better chance to keep your shares and the premium?
Great question, but you should watch a few more of the videos in this series to understand. If I had sold OTM calls, I would have gotten my ass kicked because there was no protection from the Intrinsic value.
my confusion is the buy to open... i thought we arent gamblers, that we only sell calls... im sorry if i didnt understand. is there a way to do a paper trade of the way you do it for the very first trade?
@ on the top of your spreadsheet, you have by the open several times that’s what I’m asking about. Why would you have to open if we’re only selling cover calls
Appreciate the reply... Im retired and looking for passive income... nothing more. I'm sure there is better ways to invest it but I want to eliminate the risk as much as possible. I figured with a .08 delta on tesla if It did fill the stock would be at a rebound point anyways and could either ride it up a little or sell a call against the shares. I've been watching alot of your videos and kinda understand what your doing but like you say... you just want the juice. That's all I'm looking for.
I've also done the math and in the history of tesla if I sold the puts on the 1 hr time frame as deep as possible under the bb it would never fill. That in itself removes alot of the risk being filled. What I've been doing is buying the csp at this level and then buying them back when it hits the 20 ema. The 1 hr. Chart gives me a few opportunities a week to make this move. Only a few times have I had to wait 2 to 4 days to let that happen.
One other question that popped in my mind. I closed out my 342.50 covered call for .01 and .02 today and did not roll into next week, due to the 1/17 options expiration that has possible significance next week. In relation to that, when you have a possible event like that, or let's an earnings report next week, etc., do you hit pause on selling covered calls, for concern that stock may run too far away from you? Thanks!
Actually quite the opposite.On earnings, I don't pause selling covered calls. I protect myself. Either sell deep ITM to prevent catastrophe on the downside or go to cash.
@@coveredcalls this is probably where I can learn the most then. Can you give an example where you sold deep ITM calls and the stock ran away from you to the upside? It just seems to costly to roll the calls up, if you don't want your shares to get called away (let's say example is you sold 317.50 calls on Friday and it gaps up to 340 from 328) Monday and never goes below that level, since BTC keeps running, as an example)? My concern with this particular stock is how correlated with btc it is and I don't want to miss any big runs! Thanks!
@ i have videos all over the place where the stock is over my strike. If you are worried about mossing big runs, it’s natural, but you won’t be able to implement this strategy. This is for the conservative investor who wants to make income whether the stock runs up or not. The other 80% of the time. Just being real.
The first video I watched you bought instead of sold and I gave you grief in the comments... Now I can clearly see that you do know what you are doing. So, I owe you an apology! Now I look forward to your videos in order to compare your MSTR results to mine. Going very well so far. Please keep sharing with us!
Wow! A person that owns his mistakes. Mad respect. Thanks for chiming in on that. Now, glad to be helping in any way I can. (by the way, if a few of you hadn't chimed in on my "mistake trade" I might have totally missed it.......
seems like it is a race: get all the "juice" you can as fast as possible to offset and surpass what you have paid for the base position. will be watching to see what happens at end of life of the base position.. as it looses time value near the end.
It is already losing value, but I am not worried....yet. We will see if I can collect enough juice to pay for the whole position and then each short sale is pure gravy.
Hello Mark, do you think purchasing a LEAPS contract priced at $12.58 (with an expiration date of January 16) is a good idea if profitability begins at $454? This aligns with my long-term passive strategy, as it would consolidate nearly all my $MSTR exposure in LEAPS contracts, with approximately 20% in spot holdings. Does this approach seem balanced and viable?
Mark, I don't believe you've ever talked about the kind of conviction you have in the MSTR trade, but I'm guessing you picked MSTR due to it's rise in November, but also due to your beliefs in Bitcoin? There is quite a bit of chatter that brokers may not be properly covered for the number of options expiring next Friday, Jan 17, itm. Also, is your option expiration date loosely tied to the Bitcoin bull cycle, which could peak anywhere from April to end of 2025, per most metrics and history? Thanks for your videos and all the wisdom!
You are right about much of that. I have been in MSTR off and on for a couple of years. But I am a bitcoin maxi. Regarding the 17th, I think that is already priced in. I don't think that the street would let anything happen without a way to have already made money on it. And that is priced in too. Sell the news event possibly, but to me it is all noise.
Buying the calls, instead of stock, is called a poor man's covered call (because you are using less capital to get the same amount of shares to sell covered calls on. Look it up!
I am guessing if you sold CC today for next week you are in the green again. My base position (stock) cost basis has been reduced by 40% in just two months. I have rental properties for years and years before their cost basis is reduced this much. I wish that I could use synthetics in my Webull IRA I would probably already be in profit. The other advantage....Michael Saylor doesn't call saying his toilet is clogged:) Have a great weekend and thank you.
HAHA. But I would take his call if he did. Yes, you get it. Semi-passive income without the toilet unclogging. Close to In the Green. I went in the money and got $8K in juice. Video out soon.
Sell PUTS if assigned then sell CALLS. Much better strategy. I am now holding 3k shares @ $345 avg. Will sell calls on Monday looking for $3 per share premium. I am holding out for the big ride up. Wash, rinse and repeat.
@@justme6998 it is dumbed down in the spreadsheet. If you want to learn more, don’t ask me to explain it in the comments. Watch a few videos…this is the latest video in a 30-video playlist. If you don’t invest time into your own education, you will never learn it by having things “dumbed down” for you.
A PMCC is when you buy a deep in the money long call and then sell short calls off of that. You can sell the short calls from either stock or deep ITM long calls. His full course goes over that in a lot of detail. Best of luck.
@@coveredcallslol I like It! I think it’s referred to poor because it’s less costly to buy the call vs owning 100 shares. But yea, let’s get reach using the strategy ;) !!
What are you going to do if mstr drops to 250 or below next week. A fast and big dump can’t be beneficial for your strategy because you only sold covered call for short time. If mstr doesn’t recover before your long call expiration date. Huge loss would be the case
THANK YOU Mark!!! 🙏🙏🙏 You have changed my life. I had thousands of shares of mstr and what you showed over the past weeks has taught me life changing lessons. I owe you bro
Wonderful! You are so welcome. It's fun learning a new strategy right? Anyway, thanks for that feedback. It is what makes me happy!
Totally agree! This has added a whole new strategy to my repertoire and I do use it regularly now on volatile stocks like Tesla and microstrategy. Thanks Mark, you’re the best!
@@darrenmc5424 excelente…
I agree as well, thank you Mark!!!
@ thank you…
Excellent video , I bought KWEB at 90s back in 2021 and rode it down to 20s , selling calls every opportunity I got, I walked away with +15% return in 2024 on a stock that went down 70%! Selling covered calls are awesome!
@NavShay yes indeed. Good save…
Mark, what a great video series that you created on MSTR and TSLY! I have watched all of them! I really appreciate that you provide the viewers with your thought process on when to roll and where to roll to. You have really proved to me that you win in the cashflow game by focusing on time value (extrinsic) when selling Calls to collect The Juice! I know longer have doubts about selling In The Money Calls as long as I review and focus on The Juice. Thank you for providing the entire summary of your MSTR trades!
@@lcdrpost thank you for that deep compliment. I told you that if you stick with me long enough, you will change how you see this. Seems like you did/are…. Let’s keep it going.
@@lcdrpost it is my pleasure. Not over yet but glad you have enjoyed it so far. Thank you for that feedback!!
Great video Mark, wish I had known about this years ago, please keep them coming 😁
Well you know about this now. So thank you :)
Mark superb trading and defense during this MSTR selloff!! Great analysis, thanks for making this so transparent and easy to follow along!
@@muradpadamsee6654 hi Murad. Thank you. Just trying to be the best example I can….
Keep the videos coming, been following along since the beginning.
@@Schneiderrj84 great. I will. Thank you.
You keep mentioning $543 but I think you have to use your entry point of $473 or so to compare things. If you had bought 700 shares (I think that's where you started) with cash and just held it until today you would be down about $150 per share or $105,000 total. By selling calls both in the money and out of the money you're down about $10,000. So you have made around $95,000 more than just holding the stock. i can't wait to see what happens at the 6 month point! Keep up the good work Mark!
You and I both. Also, I did mention (and put on the screen) where I got it but I talk fast so you may have missed it. I gotta slow down......But yes, you get it. I just keep chipping away at my basis. Eventually it will be free but the stock has to stabilize in here somewhere, right?
Thanks for the update and scorecard! I’m having a difficult time tracking extrinsic value in IBKR, so I’m using TOS to check before I trade. Also having some difficulty keeping track of where my P&L is on the position so I’ve got to work on that. In the meantime I’m short covered calls scattered from 280 to 330 that expire next week. I’m considering rolling the 280 up to 300 as the time value on that position gets lower and lower. You’ve introduced me to a totally new way to take advantage of the volatility. I love it. I just have to keep reminding myself that I’m really trading the time value…. It will always go to zero
TMV is the name in IBKR
In IBKR, Hover over the Headings in your Option Chain and select the '+' to add a column. Search for 'Time Value (%)'
You nailed it.
yes
thx
Thanks for being so transparent and for diligently showing your process
You are so welcome!
thanks a bunch ! seeing the whole campaign math really helps me understand.
@@marcushabel6289 haha. It takes a while for sure…
I’m getting it for sure ! Thanks Mark
@@johnp21M progress!!
Thank you so much, look forward to your videos. I totally get it, we are drinking the juice.
Just don't drink and drive.
Just found your account … need to watch your videos on this!! Brand new to covered calls. Bullish on MSTR but making money on my long position while it goes down sounds amazing 🤣
@@tjmarter190 it’s pretty cool once you get the hang of it.
Thank you Mark!!! This whole MSTR series is a life changer and I have learnt a lot. i have brand new perspective on the covered calls and the JUICE!! Question, if I have stocks of MSTR instead of LEAPS, could I still sell ITM short calls?
Absolutely you can sell ITM short calls. In fact, they work better.
Thanks for showing your loss time as well. 👍
@@jimbobmcdoogle9048 it’s all a part of the process…..
So when do you roll the long calls? Is it around 30 dte to around 150 dte?
@@Batouboi yes and usually on weakness.
Finally bought enough shares from selling puts on MSTR and others and buy shares of MSTR . I own 115 shrs. Sold a covered call at 400 bought it back ar 5 dollars and rolled it out today sold the 420 collected over 200 dollars. Expires next friday. My plan is to buy shares, sell calls and way OTM puts. 😊
Is it less risky if your base position is the actual MSTR stock rather than a LEAP?
For sure. No delta to worry about and no way it can drop below your strike.
Great. You are in the game, but you are leaving some money on the table selling Way OTM.
@@coveredcalls yeah I know. Still a little apprehensive. It was hard enough to get enough shares to do a covered call. I'll go lower on the next one.🙂👍
@@coveredcalls that was my point. Just breaking into the volatility. 🙂
I just made a few thousand off of MSTR. I have done covered calls from 360 to where we are now. I watch BTC and sometimes buy back a little too early. I can already tell you have to have patience. if it doesnt go up TOO much TOO fast, then its fine to be in a loss and collect the TIME decay. This has allowed me to not maintain my account balance while going from 360-325. I am only doing this with 100 shares of MSTR (bought at 300) to cover. Just trying to understand the game with not too much money
Starting with the least you can until you make it through a few swings is a good idea I believe.
Patience is important. Especially near expiration.
Mark, thank you for making all these educational videos. I'm using it and although my positions are down, the premium I collected during made them profitable and I still have lot's of time to trade them.
Thanks again
Bingo!
Great video, great explanation Mark. Great results. It will still take me some time to roll for a debit. But maybe I'll get it soon enough.
Haha. It really takes some getting used to.
Great videos Mark. What are you thinking for your next covered call for MSTR? Big monthly expiration on Jan 17. What will you look for on Monday? Thank you as always.
@@tednugent8365 I believe that the 17th news is already priced in. I am staying with my strategy of being safe because the market and stock are not acting well.
@@coveredcalls Understood - so slightly ITM calls on the 17th or you will sit out this week? Thank you Mark
Great stuff keep it coming 😊
@@ithinkaboutmoney365 will do.. thx
Thanks Mark this really adds clarity to your strategy. I appreciate your time educating us. I love the spreadsheet it is a great visual👍 aid.
Thank you
Great video! When do you know to roll out of a synthetic short that has run up on you? As I sold the 1/10 280 - I recovered some by rolling down to 267. Hindsight if I had held the 280 time decay was my friend.
I am starting to conclude that with something this volatile, trying to wait until closer to expiration (more often than not) may be better. Best of luck.
Yes
That’s amazing Mark❤. You give me the motivation to sell covered calls and get the juice every week.
Yayy......Keep it going....
Thank you very much for all the MSTR video's. I have been following you since you started. I wish I knew this 2 years ago when my leaps got away from me. I also want to mention that you have made more money then what is in your spreadsheet by about $2,400 due to the first light blue 400 strikes. The math does not come out correct, should be closer to $11,390. Thanks again for the videos
Hmm, I will check it. Thank you.
Appreciate the transparency and honesty.
Can't learn from dishonest people.
Love the strategy. I've learned alot.
Great thanks for letting me know. I love it.
Thank you Mark. I have gained a lot of value out of your videos. Question. Just looking at your last trade, if you rolled down to 330 again, then the stock goes up to say 350 again. when you roll up again does tht mean you pay intrinsic value twice while the base position only gains that value back? Thank you for your time and effort in educating us.
Yes it does. The ideal scenario is that the stock closes next week a penny below my new strike price, but hey, I will take what I can get.
Hi...who are you using for your trading platform. Also, did you create your profit and loss tracker in Excel? Great stuff. Thanks in advance.
Think or Swim and yes, I used Excel after I downloaded the trades.
@@coveredcalls Thank you. I use Fidelity. Think or Swim looks more useful.
Really love the spreadsheet! How can I put my hand on this :)
I built it from scratch.
Thank you for your videos and your explanations of your trades. Much appreciated for your insight and honesty.
Glad you like them!
Hi Mark, I think I'm getting it but having trouble tracking everything.. possible for you to share your spreadsheet template?
I don't have a template for that. I just downloaded the trades into a spreadsheet and added things up.
great work brother
Thanks a lot.
Love your video. Learned a lot. Do you have a video about repairing a bad trade? I bought TSLA at 470. How to fix it?
It is a long term strategy. Just keep on earning that time premium, and in a few months it won't matter. Watch the full MSTR series where you see some ups and downs. You can take his course too which goes into the details a lot more.
Exactly thank you for that understanding and comment.
Mark, on 1/6 when you rolled up and bought back the 320s would it have been better to go out another week and sell the 1/17 357.50s to help offset the buy back amount?
Sure would have. Hindsight, but I also like to get two bites at the apple during the same week so.....options = choices......
Hi Mark,
New to channel. Really appreciate your work - learning a lot. Q: I have 400x MSTR shares, how much cash/cushion would you suggest to have prior to selling CC’s ATM/ITM?
Much appreciated - from Sydney, Aus.
Josh
@@joshholder-isaako5689 Josh, I like 40% in working capital.
Great video Mark! Could you please make more videos on ITM, with more calculations? It would be great for learning for the newcomers. Thanks again!
Well, I could and I have a MsTR coming out this weekend of my roll in the money, but I am also trying to trade my plan here, so cannot just make in the money videos :) But when I can, I will and I do. Thank you.
I bought MSTR and I sell puts to open monthly as well. Its working great
Excellent!!
Thanks for these videos, keep 'em coming!
I will. Thanks for watching.
Hi Mark, so if I do a MSTR Buy Write on Friday for 1 week out, the Premium received is 4.4% for the first call option just OTM ($330 stike). Lets say we don't nail it perfectly all the time and only get 2% each week, rinse repeat 52x / year that still works out to ~180% gain in a year. Im I missing something? If it gets called away, then sell a cash secured put the next week out at 1 strike OTM ?
You are missing nothing!!!! Awesome.
@@coveredcalls Thanks ! I've been contemplating this since March, but have been selling OTM calls that were too high and more worried about losing the stocks, and missed out on all the juice over the months.
Great video ❤
Thank you. Glad you enjoyed it.
I ended up rolling up when it was 370 or so. I rolled half to 335 & half to 345 largely because my account was sending alerts. I wish I didn't of course, but whatever. Anyway that roll required roughly what it required for you. However, that was 60% of my cash. The overall value of my account went up slightly, so not worried about that exactly. I just realized that if we had a longer run up, I wasn't quite prepared. I was wondering if you have any general rule(s) of thumb regarding cash to stock ratio for a crazy stock like this or TSLA? Thanks Mark.
@@meandmyRC99 I like to start with 40% cash…
Quick question if I may. If you own a good stock (AMZN, MSFT) that is 100+ points above where you bought it. Unless it's threatening your buy point wouldn't you just sell at the at the money all the time? Or would you sell ITM/Slightly ITM in a Yellow and or Red Market (stock) to capture the intrinsic value along with the Juice? Thanks again!!
In red markets, he sells more ITM. In green he sells closer to or ATM. The more ITM, the more protection to the downside. Things are pretty darn red at the moment. Best of luck.
The latter. Market timing is an important part of my system.
please keep these market vlogs coming!
@@Carlosrossi148 planning on it…
I wish I could spend a week with you learning about options. I just dca :(
You can. I have a VIP program where we can spend a week learning.
Its an interesting strategy only down 10k on a stock that has dropped that much. I wonder at what point do you end the trade?
So far, no reason to end the trade, but if it doesn't get back above the 50-day moving average, I will consider it. Also, I can sell deeper and protect to the downside.
Just 10K!! That is awesome considering the down move of MSTR.
But do you hedge even 10% of your base position value as a cushion?
The whole trade is a hedge, so yes.
can we roll our LEAP calls?
Yes, you certainly can 👌
@@royandrews4334 would it be beneficial as well if i have to roll? By the way, i just ordered your book and I can't wait to read it.
I roll both base and short positions. See the TSLA video that will be out in a couple of days and see the roll I did on the base earlier in this series.
Of course.
What alternative I can use if I dont have a "rollover option" in my brokerage
You have to do 2 legs: the buy back and the new sell.
I love your videos but why sell to open a covered call ITM and not OTM? ITM may be a higher premium but OTM has a better chance to keep your shares and the premium?
Great question, but you should watch a few more of the videos in this series to understand. If I had sold OTM calls, I would have gotten my ass kicked because there was no protection from the Intrinsic value.
@ no protection from the intrinsic value? Interesting, something new I have to learn.
@ muy importante…
@@graceandpanic9281 Watch the whole MSTR series, and you get a pretty good idea of what is going on. Have a look at his courses too.
Hi Mark thanks for the video and for update.
Ciao
Gracie. Ciao!
Thanks for sharing!
Of course. Thanks.
my confusion is the buy to open... i thought we arent gamblers, that we only sell calls... im sorry if i didnt understand. is there a way to do a paper trade of the way you do it for the very first trade?
That may have been the mistake trade. Otherwise, I don't understand your question.
@ on the top of your spreadsheet, you have by the open several times that’s what I’m asking about. Why would you have to open if we’re only selling cover calls
If you had 800k cash... would it be to risky to sell 25 csp on tesla at a .08 delta? Am i crazy? 20k a month? Without really trying to guess?
@@LIGHTNING-1971 i don’t know you or your trading plan but it seems like a decent trade.
Can you explain this trade in further detail please?
Appreciate the reply... Im retired and looking for passive income... nothing more. I'm sure there is better ways to invest it but I want to eliminate the risk as much as possible. I figured with a .08 delta on tesla if It did fill the stock would be at a rebound point anyways and could either ride it up a little or sell a call against the shares. I've been watching alot of your videos and kinda understand what your doing but like you say... you just want the juice. That's all I'm looking for.
I've also done the math and in the history of tesla if I sold the puts on the 1 hr time frame as deep as possible under the bb it would never fill. That in itself removes alot of the risk being filled. What I've been doing is buying the csp at this level and then buying them back when it hits the 20 ema. The 1 hr. Chart gives me a few opportunities a week to make this move. Only a few times have I had to wait 2 to 4 days to let that happen.
@ well thought out.
One other question that popped in my mind. I closed out my 342.50 covered call for .01 and .02 today and did not roll into next week, due to the 1/17 options expiration that has possible significance next week. In relation to that, when you have a possible event like that, or let's an earnings report next week, etc., do you hit pause on selling covered calls, for concern that stock may run too far away from you? Thanks!
Actually quite the opposite.On earnings, I don't pause selling covered calls. I protect myself. Either sell deep ITM to prevent catastrophe on the downside or go to cash.
@@coveredcalls this is probably where I can learn the most then. Can you give an example where you sold deep ITM calls and the stock ran away from you to the upside? It just seems to costly to roll the calls up, if you don't want your shares to get called away (let's say example is you sold 317.50 calls on Friday and it gaps up to 340 from 328) Monday and never goes below that level, since BTC keeps running, as an example)? My concern with this particular stock is how correlated with btc it is and I don't want to miss any big runs! Thanks!
@@coveredcalls and when you say you go to cash, does that mean you sell your base position, if you think the it may not be in your favor?
@ i have videos all over the place where the stock is over my strike. If you are worried about mossing big runs, it’s natural, but you won’t be able to implement this strategy. This is for the conservative investor who wants to make income whether the stock runs up or not. The other 80% of the time. Just being real.
@ yes.
The first video I watched you bought instead of sold and I gave you grief in the comments... Now I can clearly see that you do know what you are doing. So, I owe you an apology! Now I look forward to your videos in order to compare your MSTR results to mine. Going very well so far. Please keep sharing with us!
Wow! A person that owns his mistakes. Mad respect. Thanks for chiming in on that. Now, glad to be helping in any way I can. (by the way, if a few of you hadn't chimed in on my "mistake trade" I might have totally missed it.......
seems like it is a race: get all the "juice" you can as fast as possible to offset and surpass what you have paid for the base position. will be watching to see what happens at end of life of the base position.. as it looses time value near the end.
It is already losing value, but I am not worried....yet. We will see if I can collect enough juice to pay for the whole position and then each short sale is pure gravy.
Hello Mark, do you think purchasing a LEAPS contract priced at $12.58 (with an expiration date of January 16) is a good idea if profitability begins at $454? This aligns with my long-term passive strategy, as it would consolidate nearly all my $MSTR exposure in LEAPS contracts, with approximately 20% in spot holdings. Does this approach seem balanced and viable?
On the surface, that doesn't sound viable to me, but I haven't done the numbers.
Hope is not a method. Give me some juice Mark. Never seen such a strategy. Thank you.
Welcome aboard.
BRILLIANT!
Thank you
Mark, I don't believe you've ever talked about the kind of conviction you have in the MSTR trade, but I'm guessing you picked MSTR due to it's rise in November, but also due to your beliefs in Bitcoin? There is quite a bit of chatter that brokers may not be properly covered for the number of options expiring next Friday, Jan 17, itm. Also, is your option expiration date loosely tied to the Bitcoin bull cycle, which could peak anywhere from April to end of 2025, per most metrics and history? Thanks for your videos and all the wisdom!
You are right about much of that. I have been in MSTR off and on for a couple of years. But I am a bitcoin maxi. Regarding the 17th, I think that is already priced in. I don't think that the street would let anything happen without a way to have already made money on it. And that is priced in too. Sell the news event possibly, but to me it is all noise.
@@coveredcalls Thanks, that same noise has been rattling around in my brain too. I sold less calls, and deeper ITM just to be safe.
@ nice move.
Question: You are not buying the MSTR stock as a base. You are buying the June 175 call instead. Is that right?
Correct!! you nailed it.
Buying the calls, instead of stock, is called a poor man's covered call (because you are using less capital to get the same amount of shares to sell covered calls on. Look it up!
I am guessing if you sold CC today for next week you are in the green again. My base position (stock) cost basis has been reduced by 40% in just two months. I have rental properties for years and years before their cost basis is reduced this much. I wish that I could use synthetics in my Webull IRA I would probably already be in profit. The other advantage....Michael Saylor doesn't call saying his toilet is clogged:) Have a great weekend and thank you.
HAHA. But I would take his call if he did. Yes, you get it. Semi-passive income without the toilet unclogging. Close to In the Green. I went in the money and got $8K in juice. Video out soon.
You covered lots of loss with this strategy. I agree
@@samvan007 indeed
Sell PUTS if assigned then sell CALLS. Much better strategy. I am now holding 3k shares @ $345 avg. Will sell calls on Monday looking for $3 per share premium. I am holding out for the big ride up. Wash, rinse and repeat.
Love it. Great.
Thanks! Just noticed, audio this time is not good. Hopefully this isn’t it moving forward.
@@chixandegg yea, I am traveling and had to use a headset mic and it sucked. Thx for feedback…
how much are u putting at risk, and what are you earning per day or whats yr process like. dumb this down for me please.
@@justme6998 it is dumbed down in the spreadsheet. If you want to learn more, don’t ask me to explain it in the comments. Watch a few videos…this is the latest video in a 30-video playlist. If you don’t invest time into your own education, you will never learn it by having things “dumbed down” for you.
Is this the same thing as a poor man’s covered call? Love your videos mark!! Squeeze that juice baby!
A PMCC is when you buy a deep in the money long call and then sell short calls off of that. You can sell the short calls from either stock or deep ITM long calls. His full course goes over that in a lot of detail. Best of luck.
Thank you very much. Let's call these Rich Man's Covered Calls, right?
@@coveredcallslol I like
It! I think it’s referred to poor because it’s less costly to buy the call vs owning 100 shares. But yea, let’s get reach using the strategy ;) !!
@ just sounds better to me…lol
What are you going to do if mstr drops to 250 or below next week. A fast and big dump can’t be beneficial for your strategy because you only sold covered call for short time. If mstr doesn’t recover before your long call expiration date. Huge loss would be the case
Pray!
Ah Green Lemonade!!!
Yum
Tom Lee predicted BTC would hit $100k in 2021 😂
Exactly. He said by the end of 2021. Only took 3.5 years for him to be right. Otherwise, I like Tom Lee.