Top Five Reasons to Sell Weekly Call
An amazing income opportunity is now here with weekly call options.
Weeklys” come out every Thursday and expire the following Friday. There are no new Weeklys in the final week where
the monthly options expire. You can just write the next week from the monthly list.
How Weeklys Super Size Your Trading
You Get to Sell 4 Times a Month!
Selling call options four times a month versus once is a pure gift. An experienced covered call
writer can earn A LOT more premium. Doubling the monthlies in many cases is not unreasonable. Also, if you use a
long-dated put for protection, this “insurance” can be paid for very fast due to more writes per
8 Days a Week Versus 30
Forecasting eight days instead of thirty is a piece of cake; it’s much easier to look at what is
happening in the week ahead. One of the biggest complaints about covered call writing is what to do if the stock
really runs up and you have to either forgo the increased gains over the call option strike you sold or buy back
the call at a much higher price. If this happens, it’s a lot easier to adjust over one week and reset with a new
trend the next week.
Accelerated Time Decay
Call writers depend on time decay. With Weeklys, time decay is greatly accelerated. There have been
times that calls I sold on Thursday morning on introduction eroded over 30% by Monday’s close. How cool is that?
You can write near-the-money calls or at-the-money-calls and collect the higher premiums due to the rapid time
Skip Earnings Week and Relax
How many times have you crossed your legs and held your nose during earnings week? Well, now you can
just sit it out. Weeklys offer the ultimate in flexibility. You can also trade the news that week before or after
the event. Again, you can be in or out of the market weekly. THAT is flexible.
Selling Weekly Puts for Even More
Weeklys offer an astonishing opportunity to super size returns by selling a naked put or a put
spread (to limit risk and to use less margin) for more premium. Just follow normal put selling rules; sell below a
strong support point, at least one strike out of the money and maybe more if the premiums are good.
It’s amazing how many experienced investors and fund managers do not know much about weekly options.
The word is spreading.
There is a lot to know about the various covered call writing strategies for up, down or sideways
markets. The more you learn, the more you earn. For more call strategies click here.