I found all this extremely helpful. You have shown me how to play this and protect yourself with covered calls. I have been playing it wrong and I am glad your knowledge has corrected my thinking! Thanks for being willing to share at no cost to us
@@urvesh0607 One, I was buying a hundred shares and then doing covered calls. But with synthetics, you can have lower cost, deeper in the money and not get burned by the gap of the covered call vs the price you bought the shares at. Also, I was doing covered calls out of the money, because I was always concerned if the shares get called away. This lead to not paying attention to IV and selling the covered call at the wrong time, because you want to sell at the peak IV, so then theta decay and IV crush work for you.
Every time I watch one of these videos where you explain the question that is on everyone's mind (because every other TH-camr tells you that you are in trouble if the strike price goes above and you will be assigned), I feel like I have leveled up in knowledge. These videos are so important! Please keep it up. I am enjoying every one.
There are many ways to play options. If you know the direction of the market and stocks, you can be very successful. If you get good at it, you will never be forced to work for anyone in your life. The juice is also very tasty.
Hey mark, I had to let you know that I was able to buy my 100 shares of Mstr back at 34500 and I bought an extra 10 shares with the extra money just because. I have to be honest I was thinking I might have to buy back higher and I would have because I don’t want to lose my shares. I got lucky this time and I will be more careful in the future. Nothing against plumbers but I’m just a plumber trying to plan for retirement and last Friday I got busy and couldn’t check the market for several hours and when I checked after the market closed my covered call 360 got exercised! Thanks to you I’m starting to see the light at the end of the tunnel!
@@guyhickson7332 great. Plumbing is a fantastic career. In fact, I recommend to kids graduating that they consider the trades. AI is going to crush white collar jobs and the plumbers (and options sellers) will rule the world….
Mark you are Santa Clause to me this a Christmas! Absolutely love your video’s and I highly appreciate you! Thanks for all you do, and have a very Merry Christmas 🎁🎉!
Thank you for another great video Mark, and Merry Christmas to you and yours! You mention the market is currently red, what indicator/s do you use that provides you with the market being green, red, or flat?
One of the very helpful things about these videos that isn't obvious. The stocks you are picking is a big deal. I wouldn't have thought to trade MSTR, very volatile and no conventional metrics, just driven by bitcoin. I am trading TSLA but mainly post election You make your money when the stock goes up and these stocks are all over. I used to trade SPY because it was consistent and went up predictably. Not as much premium but safe. But SPY ran through the shorts so often it was better to just go long. I am in META which is more volatile than SPY or AAPL but more stable than TSLA. i think the difference might be the META trading range seems to be smaller and the shorts don't go too deep in the money. So I roll them quite often taking profits along the way.
Hi Mark, In the video above around 7:25 time into the video, you mentioned that if the short calls are assigned you would be -700 shares short. In that case you would just exercise the 7 base positions at $175 strike to cover the short. In other words you have to have about 123K to buy 700 shares to cover the shorts. Is that correct?
Hi Mark.. TH-cam referred me to your channel with my recent interest in MSTR. Where do you recommend beginner traders not familiar at all with covered calls? Your ebook, TH-cam channel or your online course?
@@tcotroneo Hi. Well I have a lot here but much if it assumes you understand options. Still I have some beginner stuff here too. My free ebook describes a lot and my Cash Flow Machine Fast Launch Course is a complete program from beginner to advanced (5 weeks)… glad you are here….
Merry Christmas Mark Just a quick one - at 07:40 min in the video when you saying your brokerage won’t close your base position if your short calls expire in the money , what would happen if you didn’t have enough cash sitting in the broker and didn’t have any leverage account with broker ? How would you be exercised on those short calls or how would you be short 700 shares of MSTR in that case ?guessing as you mention right after it , you’d be forced to purchase your short calls which would have expired in the money for the Sake of the this example using your working capital?
Quick question, now that I know about the whipsaw concept, is MSTR considered a whipsaw stock since 11/15 till now? or does whipsaw need more higher highs and lower lows than what mstr has gone through the last month and few days? I see it starting 11/15 at 358 then goes to 473 11/20 then 398 11/21 then 423 then 355 then 404 then 358 then 410 then 325 then 364 then 331 then today 360. so these are just ups and downs ups and downs.
@@Nathan00at78Uuiu whipsaw can happen with no trend in place. I don’t feel very whipsawed at the moment. The key as you know now is to focus on that juice and not getting sucked into chasing it up. (Also, congratulations on passing the final exam)…
Thanks so much for helping us to learn. I have watched the whole MSTR playlist, obv the first one too, and I'l be honest I still don't understand 100% how the synthetfics work 100%, although I understand how to open it. If you might please be able to do a video where you explain the details of synthetics to someone who has no experience with them and who had previously only sold CCs or CSPs. FESTIVUS!!!
@@coveredcalls Thank you. As I understand it the main advantage of the synthetic position is that it requires less initiial capital outlay and less capital being tied up, but your downside risk is essentially exactly the same as just owning the stock. If I got it right.
@@coveredcalls That's what I am not yet expert enough to know yet, what are the pros and cons of those two options or the practical differences. In theory I would prefer to own the one which gives me the least downside exposure to MSTR's actual movement and allows me to focus on the juice. Trying to learn, only recently learned what a synthetic is at all and am a relative novice. Thank you for your replies I learn a lot from you.
I think that I almost understand, one thing is still bothering me: When rolling ITM calls aren't those worth more then what you bought them for? Isn't that basically realizing a loss?
That’s also what confuses me. If I sold a call for 20 and now it’s worth 31, if I buy to close I’d now lose 11. I’m not sure where the posture EV or “juice” is coming from or calculated. I don’t see that in fidelity or Robinhood, Every time I had this situation, to avoid losses I bought back the ITM short and sold the long. That’s why I’ve always sold my calls at the breakeven point for the long. Mark, are there other videos you recommend to better explain your set up? Thanks! And happy holidays !🎉
@@coveredcalls I know, I honestly watched all of them! However, everytime you explain that part that we all mostly get wrong - i keep not understanding your explanation. That's why I asked in the comment section, you encourage your viewers to ask and this part is to me the missing link :) Let me explain my thinking and hopefully you can point out what I'm missing: The juice I got from selling a call is in my account, nobody is taking that away from us. That juice became working capital, buying power. Should however the trade move against us (assuming a green market) then by rolling up and/or out we need to use some of that working capital to buy the call back. The extrinsic value of the short call did go down since time passed, but the intrinsic value went up (assuming underlying is rising or even surpassed strike). So the total value/price of the short call since writing the call has gone up. Meaning closing that one would result in a loss/net negative, no? Then we write a new call in order to complete the roll up and/or out. The only option to have a gain/net positive now is if the juice receiveed now is bigger then the difference between the sell to open price to the buy to close price. Since we own stock or a leap option (synthetics) this part did increase in value from the upside movement but this is unrealized profit. Rolling does realize. Thanks !!!
I have been using cash covered puts on stocks I’m wanting to buy anyway such as Mara, riot and other miners that are following the Mstr plan. If we get assigned it’s no big deal because we can then use them to sell covered calls. I just wish I had enough money to buy cash secured puts for Mstr or even Tesla!!!
Merry Christmas. Started watching your videos and I have to say that your strategy is definitely different. Bit confusing to me as I am too naive but maybe one day when I can afford I’ll join your discord. 🙏🏽
Love your videos! My one concern is doing ITM covered calls and getting called away on the shares, even though you say it rarely happens. So my question is this, the person who has those 7 calls that you sold, can they not exercise those options today, while they are ITM, before the expiration? What do you do, if that happens (or what are odds of that happening?)? Can you do a video on Dec. 27 to show what you do, if those calls are still ITM, on expiration date? I'd love to see how the juice looks on expiration date, because I'm having a hard time understanding the extrinsic value being that low, if you are down on the mark price from your trade price? Thanks for all you do!
Mark, I truly appreciate your explanations. I've been a follower ever since I saw how much juice you're making! Could you go where when you have a chance about how you built your base position and what things you look into when establishing a base position?
So to do covered calls We need to buy 100 shares =1 contract. And then if my avrg in MSTR is $360 and if i did covered call for a month with strike price $380 And if my stock goes down i can buyback my options with profit. That is the covered calls and thats what you are doing right? I am new and learning. I am going to watch all.your videos.
Love your show. Thanks so much for your insight into selling calls. As a novice what would be really helpful to me is to see the worst case scenario and see how exactly things can go wrong and then how to avoid that. I know you just roll a call but there's this deep fear that I'm missing something and it could go terribly wrong especially with multiple contracts.
@@TIKIWOLF Thanks for watching. Here is the worst case scenario: the stock drops a to zero and you lose all your money. I don’t know how you avoid that other than having rules in place…set up a trading plan, learn, grow, get educated. Don’t trade from fear other than to set parameters. Happy holidays…
The 330 short calls will have even more delta for Thursday and Friday. It jumped from 0.5 to 0.85 whereas long only increase from 0.9 to 0.91. You are making money because you bought 1 extra call -7 vs +8. If stock price does not drop. Rolling is indeed the way to avoid assignment and it only costs some extra time to collect juice. So, I was correct on yesterday comment
you were right to a degree. the covered calls are catching up and upside is eventually capped, but the deeper in the money calls still made $3.50 more per contract then the covered call (or $6 if you go by the mrk chg column). Not sure which is more correct since Scwab took over TOS. So, even without the 8th contract, he could have just closed the 7 of each out for $2450 (or $4200 if using the $6 mrk chg). profit in a day and reloaded, but that;s not really his strategy. he trades for the income/juice, not capital gains and the $20 of juice pads him from 310-350. maybe it's just not your preferred strategy. Thar's OK. we all have different goals. In any case, they didn't expire, they didn't get called away, and there are still 2 more trading days this week who knows whatll happen? i have a similar position.(but only 1 of each), though i am overall bullish this time of year, i did not close either call and am not losing money. up about $350 today
Thanks for all you provide for information Mark ! It's too bad that you feel you have to explain your strategy over and over again. I also thank you for providing your brokerage platform as I would love use synthetics . Happy holidays to you !
Hi Mark! Merry Christmas! I missed signing up for your trading class on the 15th with the promo price. I booked the 15min call thinking it was a pre requisite to sign up but realized that it was a different link. Is there any way for me to sign up and get the promo price? Pls let me know. I will sign up today.
@@MambaRopes my team handles all of that. I do know we are close to full if not full already. Please continue with the call and maybe if we have a cancellation we can let you know. I think there is still a discount running….
@coveredcalls thank you for replying! I checked again now and sadly it is back to the regular price of 3,497usd. Unless there is a discount code i need to input? Im really keen to sign up
Thanks again. Luckily, I am fortunate to have bought $MSTR at $125 a share in August. Thus, mine are true covered calls. I do sell my calls a little further out of the money, as I never want my shares called away. Would you do anything different if you owned the shares?
I’m in the same boat! Been buying for years until I actually had 100 shares so now I can take it to the next level! Are you using a Roth IRA for your strategy?
I think Mark recommends the same strategy whether you own the stocks outright or using synthetics. Owning the stocks outright is what he wants people starting out with his system to do. Later, he teaches you to use synthetics for leverage.
I've been following you for a couple weeks, and I'm trying to piece together your strategy. I get the whole covered call premise but if your using what I call "roll till you win" method what purpose does the ITM call really serve other then lowering your margin requirement? I assume you don't have any interest in owning Tesla or MSTR in the longer term? Or maybe that's the part I'm missing?? For the call your selling against your putting up alot of capital to start with and if you don't want to buy the underlying to pledge for assignment, but then your rolling it out anyway why bother having the ITM call in the first place?
I wondered this too derek until I realized that my broker (Schwab) will not allow the selling of a Covered Call without a base position (something about the possible unlimited loss if the underlying rises dramatically). And the Long Calls require much less capital than buying the stock for the base position to sell the weekly calls against. At least that's how I understand it. I learn a little more with every video you release Mark, thank you.
@@TraderPhil98use a good broker like IBKR, I sell naked otm calls on MSTR, I have the ability to buy the underlying and the only time I have had to do that was the week it ran to 550, I had sold the 500s earlier that week so I had to buy shares at 500 which I ended up selling at 500 on the Thursday when the price collapsed. I lost a bit on the buy and sell but still kept the vast majority of the $26 in premium I collected.
@coveredcalls I mean having a base position at all, I just see it as tying up capital since your intent is to roll out regardless. You obviously have the capital to buy the underlying. What am I missing?
Right. Buying calls is a tough game. You really have to thread the needle. It might be better if you had bought say the $250s and sold calls against them and made money whether the stock goes up or not. Sorry you are down.
Hey Mark, as an alternative to MSTR (P/B=20), If you're bullish on bitcoin, would you consider investing in bitcoin spot etf, like IBIT and selling weekly ITM calls against ?
I had invested $200K in MicroStrategy back in August 2020, and today it's worth over $1.16M. With over 3,250 shares at $358 each. I ddnt sell any did i do right? Or its better to sell them and buy when its low i think its more profit.. what is your suggestions? Merry Christmas btw
You are just establishing a new position so you will see your basis per share of the new position (some random number) , not the avg price you received when you rolled for credit. You have to track it yourself
I found all this extremely helpful. You have shown me how to play this and protect yourself with covered calls. I have been playing it wrong and I am glad your knowledge has corrected my thinking! Thanks for being willing to share at no cost to us
@@nathanbrake9666 glad you got it.!!!
Can you please share your mistakes which you did?
Thanks
@@nathanbrake9666 glad you are learning.
@@urvesh0607 i do. Just watch.
@@urvesh0607 One, I was buying a hundred shares and then doing covered calls. But with synthetics, you can have lower cost, deeper in the money and not get burned by the gap of the covered call vs the price you bought the shares at. Also, I was doing covered calls out of the money, because I was always concerned if the shares get called away. This lead to not paying attention to IV and selling the covered call at the wrong time, because you want to sell at the peak IV, so then theta decay and IV crush work for you.
Every time I watch one of these videos where you explain the question that is on everyone's mind (because every other TH-camr tells you that you are in trouble if the strike price goes above and you will be assigned), I feel like I have leveled up in knowledge. These videos are so important! Please keep it up. I am enjoying every one.
@@PatrickHoodDaniel that is a great compliment. Thanks you…
Trading time decay instead of direction. It’s making a lot of sense to me. Merry Christmas 🎄
@@kenmoreholdings1334 great!!! Merry Christmas!!
Merry Christmas! Thanks for the great education!
@@Mike_Affholder merry Christmas to you. My pleasure.
Thank you so much for all your videos. I i am just learning options and I love your teaching method. I appreciate you!
@@frogmccuish thanks for the compliment and for watching….
There are many ways to play options. If you know the direction of the market and stocks, you can be very successful. If you get good at it, you will never be forced to work for anyone in your life. The juice is also very tasty.
@@tonynunez6539 well said!!!
when you roll, does it show you what your up from both the initial trade and then the roll? or do u have to keep track?
@@24hrstolive27 oh I have to keep track. I did a math video last week of my spreadsheet.
Hey mark, I had to let you know that I was able to buy my 100 shares of Mstr back at 34500 and I bought an extra 10 shares with the extra money just because. I have to be honest I was thinking I might have to buy back higher and I would have because I don’t want to lose my shares. I got lucky this time and I will be more careful in the future. Nothing against plumbers but I’m just a plumber trying to plan for retirement and last Friday I got busy and couldn’t check the market for several hours and when I checked after the market closed my covered call 360 got exercised! Thanks to you I’m starting to see the light at the end of the tunnel!
@@guyhickson7332 great. Plumbing is a fantastic career. In fact, I recommend to kids graduating that they consider the trades. AI is going to crush white collar jobs and the plumbers (and options sellers) will rule the world….
i am finally starting to get hour strategy. Merry Christmas to you and yours.
@@angelodorsett1 back atcha!!
Appreciate the update! Merry Christmas!
@@Normancito860 👍👍👍
Mark you are Santa Clause to me this a Christmas! Absolutely love your video’s and I highly appreciate you! Thanks for all you do, and have a very Merry Christmas 🎁🎉!
@@playlist5692 ho ho ho!!!!
I'm on IBKR and I can't even add the extrinsic value to my columns, neither the intrinsic for fact. So frustrating
@@davevallee1183 I am on IBKR and I have no problem (time value)
Another excellent video. I so appreciate it. Thanks so much 👍
@@DaveGeisler my pleasure. Thanks for your support…
Thank you for another great video Mark, and Merry Christmas to you and yours! You mention the market is currently red, what indicator/s do you use that provides you with the market being green, red, or flat?
@@j.strawn1310 I have developed a market timing system. See some of my other videos.
One of the very helpful things about these videos that isn't obvious. The stocks you are picking is a big deal. I wouldn't have thought to trade MSTR, very volatile and no conventional metrics, just driven by bitcoin. I am trading TSLA but mainly post election You make your money when the stock goes up and these stocks are all over. I used to trade SPY because it was consistent and went up predictably. Not as much premium but safe. But SPY ran through the shorts so often it was better to just go long. I am in META which is more volatile than SPY or AAPL but more stable than TSLA. i think the difference might be the META trading range seems to be smaller and the shorts don't go too deep in the money. So I roll them quite often taking profits along the way.
@@Roscoe0494 you are correct. Stock selection is key and each stock has a different personality. One must fit their own personality to a stock.
what you did yesterday to roll down was a good Move. I been doing this for a while for other stocks.
@@F10-GT bingo!!
Thanks for the video Mark. Merry Christmas and Happy New Year!
@@KeithHill2 happy holidays to you!
Hi Mark,
In the video above around 7:25 time into the video, you mentioned that if the short calls are assigned you would be -700 shares short. In that case you would just exercise the 7 base positions at $175 strike to cover the short. In other words you have to have about 123K to buy 700 shares to cover the shorts. Is that correct?
@@az-nc1389 yes but you wouldn’t do that because you will lose the juice you paid on the longs.
HI Mark, today MSTR @330 rolled.. good "juice". For next week i try with @340 a little bit OTM... We will see.. Ciao
@@3rcapital yes let’s see. Ciao!
Hi Mark.. TH-cam referred me to your channel with my recent interest in MSTR. Where do you recommend beginner traders not familiar at all with covered calls? Your ebook, TH-cam channel or your online course?
@@tcotroneo Hi. Well I have a lot here but much if it assumes you understand options. Still I have some beginner stuff here too. My free ebook describes a lot and my Cash Flow Machine Fast Launch Course is a complete program from beginner to advanced (5 weeks)… glad you are here….
Merry Christmas Mark
Just a quick one - at 07:40 min in the video when you saying your brokerage won’t close your base position if your short calls expire in the money , what would happen if you didn’t have enough cash sitting in the broker and didn’t have any leverage account with broker ? How would you be exercised on those short calls or how would you be short 700 shares of MSTR in that case ?guessing as you mention right after it , you’d be forced to purchase your short calls which would have expired in the money for the Sake of the this example using your working capital?
@@amirsal2629 good guess…. 🙂
Hi Mark.. thanks for the video and Merry Xmas
@@3rcapital and to you!!
Hey Mark,
If I am understanding correctly. The goal is for the long call delta to be higher than the short call delta throughout the trade?
@@tod8205 not quite “the goal” but it is preferred…..
@@coveredcalls Ok starting to make sense. Ty Mark
Mark explains his strategy over and over again..Because new people are always coming to watch his videos Also you don’t get it all in one session 😊
@@tammywynette8242 true. Thank you.
Merry Christmas, Mark!
@@jc7887 and to you…
Happy Holidays, Mark!
thanks and to you and yours as well.
Quick question, now that I know about the whipsaw concept, is MSTR considered a whipsaw stock since 11/15 till now? or does whipsaw need more higher highs and lower lows than what mstr has gone through the last month and few days? I see it starting 11/15 at 358 then goes to 473 11/20 then 398 11/21 then 423 then 355 then 404 then 358 then 410 then 325 then 364 then 331 then today 360. so these are just ups and downs ups and downs.
@@Nathan00at78Uuiu whipsaw can happen with no trend in place. I don’t feel very whipsawed at the moment. The key as you know now is to focus on that juice and not getting sucked into chasing it up. (Also, congratulations on passing the final exam)…
Thanks Mark for sharing your knowledge. I have started with a small Roth account and appreciate you. Merry Christmas!
@@manuldhia9330 great.. Merry Christmas
Thanks so much for helping us to learn. I have watched the whole MSTR playlist, obv the first one too, and I'l be honest I still don't understand 100% how the synthetfics work 100%, although I understand how to open it. If you might please be able to do a video where you explain the details of synthetics to someone who has no experience with them and who had previously only sold CCs or CSPs. FESTIVUS!!!
@@---tx9xx I will but you don’t need synthetics to be successful selling covered calls. Using the stock works just great too…
@@coveredcalls Thank you. As I understand it the main advantage of the synthetic position is that it requires less initiial capital outlay and less capital being tied up, but your downside risk is essentially exactly the same as just owning the stock. If I got it right.
@ well, would you rather own the stock at $174 or a synthetic at $174?
@@coveredcalls That's what I am not yet expert enough to know yet, what are the pros and cons of those two options or the practical differences. In theory I would prefer to own the one which gives me the least downside exposure to MSTR's actual movement and allows me to focus on the juice. Trying to learn, only recently learned what a synthetic is at all and am a relative novice. Thank you for your replies I learn a lot from you.
Great video brother. It is about to get VERY interesting with MSTR very shortly.
@@FloridaBoyBushcraftSurvival worddd!
Most valuable series on TH-cam 🎉
@@KG-wh8yv well thank you. I am trying to figure out how to do a cliffhanger like the good shows on Netflix😂😂😂
@coveredcalls lol, happy holidays keep them coming. 🥳
I think that I almost understand, one thing is still bothering me: When rolling ITM calls aren't those worth more then what you bought them for? Isn't that basically realizing a loss?
@@laulau069 no and I explain this many times in this video series.
That’s also what confuses me. If I sold a call for 20 and now it’s worth 31, if I buy to close I’d now lose 11. I’m not sure where the posture EV or “juice” is coming from or calculated. I don’t see that in fidelity or Robinhood, Every time I had this situation, to avoid losses I bought back the ITM short and sold the long. That’s why I’ve always sold my calls at the breakeven point for the long. Mark, are there other videos you recommend to better explain your set up? Thanks! And happy holidays !🎉
@ I have a to. Of videos on this channel. Watch enough of them and you will start to understand. Happy holidays…
@@coveredcalls I know, I honestly watched all of them! However, everytime you explain that part that we all mostly get wrong - i keep not understanding your explanation. That's why I asked in the comment section, you encourage your viewers to ask and this part is to me the missing link :)
Let me explain my thinking and hopefully you can point out what I'm missing:
The juice I got from selling a call is in my account, nobody is taking that away from us. That juice became working capital, buying power. Should however the trade move against us (assuming a green market) then by rolling up and/or out we need to use some of that working capital to buy the call back. The extrinsic value of the short call did go down since time passed, but the intrinsic value went up (assuming underlying is rising or even surpassed strike). So the total value/price of the short call since writing the call has gone up. Meaning closing that one would result in a loss/net negative, no? Then we write a new call in order to complete the roll up and/or out. The only option to have a gain/net positive now is if the juice receiveed now is bigger then the difference between the sell to open price to the buy to close price.
Since we own stock or a leap option (synthetics) this part did increase in value from the upside movement but this is unrealized profit. Rolling does realize.
Thanks !!!
Thanks for always sharing your valuable insight.
@@Yasomo89 👍👍👍
do u not sell cashed secured puts? or is main focus buying the underlying stock and then selling covered calls
@@24hrstolive27 sometimes but cc are preferred.
I have been using cash covered puts on stocks I’m wanting to buy anyway such as Mara, riot and other miners that are following the Mstr plan. If we get assigned it’s no big deal because we can then use them to sell covered calls. I just wish I had enough money to buy cash secured puts for Mstr or even Tesla!!!
@@guyhickson7332 it’s coming….bit by bit
Merry Christmas. Started watching your videos and I have to say that your strategy is definitely different. Bit confusing to me as I am too naive but maybe one day when I can afford I’ll join your discord. 🙏🏽
@@amanraj4116 you’ll get it. I don’t have a discord…
@ thank you . Sorry I meant join you as your student. Thank you for putting these videos and also happy new year to you and yours 🙏🏽
@ happy holidays to you…
Love your videos! My one concern is doing ITM covered calls and getting called away on the shares, even though you say it rarely happens. So my question is this, the person who has those 7 calls that you sold, can they not exercise those options today, while they are ITM, before the expiration? What do you do, if that happens (or what are odds of that happening?)? Can you do a video on Dec. 27 to show what you do, if those calls are still ITM, on expiration date? I'd love to see how the juice looks on expiration date, because I'm having a hard time understanding the extrinsic value being that low, if you are down on the mark price from your trade price? Thanks for all you do!
They can, but why would they? Will keep the rest of your comment in mind for the next video.
Ha Ha, you read my mind with this post today.
@@jc7887 i know 😂😂
Mark, I truly appreciate your explanations. I've been a follower ever since I saw how much juice you're making! Could you go where when you have a chance about how you built your base position and what things you look into when establishing a base position?
@@harshdwivedi3853 thanks. Absolutely…
So to do covered calls
We need to buy 100 shares =1 contract.
And then if my avrg in MSTR is $360 and if i did covered call for a month with strike price $380
And if my stock goes down i can buyback my options with profit.
That is the covered calls and thats what you are doing right?
I am new and learning. I am going to watch all.your videos.
@@urvesh0607 that is approximately right. You should watch more to understand more…
@coveredcalls Yes I already started. Thankyou.
@ 👍
Love your show. Thanks so much for your insight into selling calls. As a novice what would be really helpful to me is to see the worst case scenario and see how exactly things can go wrong and then how to avoid that. I know you just roll a call but there's this deep fear that I'm missing something and it could go terribly wrong especially with multiple contracts.
@@TIKIWOLF Thanks for watching. Here is the worst case scenario: the stock drops a to zero and you lose all your money. I don’t know how you avoid that other than having rules in place…set up a trading plan, learn, grow, get educated. Don’t trade from fear other than to set parameters. Happy holidays…
The 330 short calls will have even more delta for Thursday and Friday. It jumped from 0.5 to 0.85 whereas long only increase from 0.9 to 0.91. You are making money because you bought 1 extra call -7 vs +8. If stock price does not drop. Rolling is indeed the way to avoid assignment and it only costs some extra time to collect juice. So, I was correct on yesterday comment
you were right to a degree. the covered calls are catching up and upside is eventually capped, but the deeper in the money calls still made $3.50 more per contract then the covered call (or $6 if you go by the mrk chg column). Not sure which is more correct since Scwab took over TOS. So, even without the 8th contract, he could have just closed the 7 of each out for $2450 (or $4200 if using the $6 mrk chg). profit in a day and reloaded, but that;s not really his strategy. he trades for the income/juice, not capital gains and the $20 of juice pads him from 310-350. maybe it's just not your preferred strategy. Thar's OK. we all have different goals.
In any case, they didn't expire, they didn't get called away, and there are still 2 more trading days this week who knows whatll happen? i have a similar position.(but only 1 of each), though i am overall bullish this time of year, i did not close either call and am not losing money. up about $350 today
Keep it going and sounds like you understand the crux.
@@coveredcalls nice selection on those 330s! I got out around 4 and rolled. Probably should have waited s bit longer!
@ I am hanging in there and trying to squeeze out a few more drops…
Thanks for all you provide for information Mark ! It's too bad that you feel you have to explain your strategy over and over again. I also thank you for providing your brokerage platform as I would love use synthetics . Happy holidays to you !
Well I don't mind explaining the strategy because not everyone is where you are now. We all had to start from the beginning. Happy Holidays.
MSTR
What do you think about increasing the number of issued shares by several times through a Temperary board meeting?
@@johnnyjeong2555 fine by me.
Hi Mark! Merry Christmas! I missed signing up for your trading class on the 15th with the promo price. I booked the 15min call thinking it was a pre requisite to sign up but realized that it was a different link. Is there any way for me to sign up and get the promo price? Pls let me know. I will sign up today.
@@MambaRopes my team handles all of that. I do know we are close to full if not full already. Please continue with the call and maybe if we have a cancellation we can let you know. I think there is still a discount running….
@coveredcalls thank you for replying! I checked again now and sadly it is back to the regular price of 3,497usd. Unless there is a discount code i need to input? Im really keen to sign up
@@MambaRopes can you send my team an email - markyeggeteam@gmail.com Thank you, they can let you know if we get a cancellation.
@@coveredcalls will do! Thank you
Thanks again. Luckily, I am fortunate to have bought $MSTR at $125 a share in August. Thus, mine are true covered calls. I do sell my calls a little further out of the money, as I never want my shares called away. Would you do anything different if you owned the shares?
I’m in the same boat! Been buying for years until I actually had 100 shares so now I can take it to the next level! Are you using a Roth IRA for your strategy?
@guyhickson7332 mine are in a Traditional IRA, but plan to start converting them into a Roth.
I think Mark recommends the same strategy whether you own the stocks outright or using synthetics. Owning the stocks outright is what he wants people starting out with his system to do. Later, he teaches you to use synthetics for leverage.
Not if that were my goal. Good job and congratulations.
Do you keep extra cash on standby to roll?
@@uj5k yes. I let juice accumulate in working capital.
I've been following you for a couple weeks, and I'm trying to piece together your strategy. I get the whole covered call premise but if your using what I call "roll till you win" method what purpose does the ITM call really serve other then lowering your margin requirement? I assume you don't have any interest in owning Tesla or MSTR in the longer term? Or maybe that's the part I'm missing?? For the call your selling against your putting up alot of capital to start with and if you don't want to buy the underlying to pledge for assignment, but then your rolling it out anyway why bother having the ITM call in the first place?
@@derekcheney5186 you mean instead of the stock or do you mean having a base position at all? I don’t follow the logic of your question? Sorry.
I wondered this too derek until I realized that my broker (Schwab) will not allow the selling of a Covered Call without a base position (something about the possible unlimited loss if the underlying rises dramatically). And the Long Calls require much less capital than buying the stock for the base position to sell the weekly calls against. At least that's how I understand it. I learn a little more with every video you release Mark, thank you.
@ 👍👍👍
@@TraderPhil98use a good broker like IBKR, I sell naked otm calls on MSTR, I have the ability to buy the underlying and the only time I have had to do that was the week it ran to 550, I had sold the 500s earlier that week so I had to buy shares at 500 which I ended up selling at 500 on the Thursday when the price collapsed. I lost a bit on the buy and sell but still kept the vast majority of the $26 in premium I collected.
@coveredcalls I mean having a base position at all, I just see it as tying up capital since your intent is to roll out regardless. You obviously have the capital to buy the underlying. What am I missing?
Robinhood just closes my leaps if my CC is even remotely close at expiration so I have to roll or close the cc if it’s even close at all.
@@krisjackson923 interesting
What do you think about doing this strategy with qqq or spy?
@@emrs05 it would work great. Less risk/less return. Smoother. Watch out for dividends.
You likea tha juuuice.
Yes he likea tha juuuuice. 😂😂😂
@@Nathan00at78Uuiu da juuuuuice…
Merry Christmas to you and your family Mike 👍 Let's have a Green 2025!!
Yes let's. Happy holidays.
I got an April 440 strike. I need this to rocket. Thank God i bought time. Down bad though currently
Right. Buying calls is a tough game. You really have to thread the needle. It might be better if you had bought say the $250s and sold calls against them and made money whether the stock goes up or not. Sorry you are down.
Hey Mark, as an alternative to MSTR (P/B=20), If you're bullish on bitcoin, would you consider investing in bitcoin spot etf, like IBIT and selling weekly ITM calls against ?
@@motishorhaham9105 not sure they are mature enough but could consider, yes…
Today is Dec 27 - how'd this turn out with TSLA at $429? your Sold to Open must have been profitable
@@anakaoka check out video that just came out . Yes profitable.
I had invested $200K in MicroStrategy back in August 2020, and today it's worth over $1.16M. With over 3,250 shares at $358 each. I ddnt sell any did i do right? Or its better to sell them and buy when its low i think its more profit.. what is your suggestions? Merry Christmas btw
@@TrendyFinds25 I think with a position like that, you should learn a system for harnessing income and protecting your profits….
Merry Christmas , thanks for all what you do for us, much appreciated !
@@retiredn thank you. Merry Christmas…
when you roll, does it show you what your up from both the initial trade and then the roll? or do u have to keep track?
You are just establishing a new position so you will see your basis per share of the new position (some random number) , not the avg price you received when you rolled for credit. You have to track it yourself
@@24hrstolive27 keep a spreadsheet.
@@coveredcallshi mark when rolling up cc do we need collateral for that?
@ you will need cash/working capital, yes.,