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Very informative and helpful. Do you Roll the Cash Secured Put to avoid assigning?

IB platform is archaic. Doing the analysis and making the subsequent adjustments is 1000X easier on tastytrade platform.

thanks for the video, keep them coming please, IB platform can be very confusing sometimes

Thanks a lot Sir!

how do you know if a gamma exposure is positive or negative? i mean how can you know if the asset manager are long or short the option?

If I'm selling a DITM CC that has -.94 delta and the IV is 300%, the div isn't till aug and the contract expires in 18 days, are these good indicators? The break even is actually above the current stock price too. The only thing I have concerns is the bid-ask spread is not great, but the mark price is still good premium, but. I'd have to play with that in hope of getting it filled.

Those free vids are better than other people's 197$ courses. But the video description could use some work, this reads too much ChatGPT-ish.

Another way to use DITM call options is a replacement for high dividend income stocks. You get downside protection unlike high dividend stocks. I have reviewed a number of high dividend stocks and very, very few outperform an SP500 index stock for total return over time.

I calculated the deep in the money calls for AAPL from today 05/28/24 to the 12/20/24 for 2 periods of dividends. I would have waited until it was closer to first x-dividend date for better returns but this is just a real example. The annual returns shown are what you would receive if someone exercised the option on these dates. These were calculated using the average bid and ask price. You want the stock to be taken otherwise you won’t make as much or loss money. Dividend Date Strike 1st Last 12/20/24 Down Side Protection $130 14.3% 6.8% 5.9% 14.3% $140 17.7% 8.3% 7.1% 17.7% S150 19.5% 9.1% 7.7% 19.5% $160 22.0% 10.2% 8.5% 22.0% $170 26.0% 12.0% 10.0% 23.1%

Is that graph the only tool you use to make these DITM covered call decisions? If not, it would be nice to see the thought process in a real trading scenario. I have yet to see anyone do this on YT TBH. Maybe because it's the magician showing his tricks? LOL! I don't know. I'm learning all this currently myself and YT suggested your video. Also, up till now, I've learned that covered calls are a strategy for making more money on a stock you expect to go up in value anyway (over a decent amount of time) and if it doesn't, you can still make money, until it does. And if the price slips too much, you should be exiting the stock early and hopefully the CCs have covered any losses. Or, if you are long on the stock, just work covered calls like on a monthly basis or weekly, if you can invest the time, during your "wait" for the stock to go higher again. I've never heard of covered calls being THE strategy and reason for buying a stock. So, I'm sort of wondering what is right or wrong now. Because, in the end and as I see it, covered calls on a stock is a trading strategy on a longer term investment in a stock. So, I'm leaning towards buy stocks for why you want to buy stocks as an investment (longterm) and use covered calls to generate more money off that investment. The other reason is because, I've learned there is a 100% trading strategy, the call debit spread, which with the same "bullish" intentions on a stock, you can trade options with a lot less invested capital, and thus make a much greater ROI than with covered calls (obviously with higher risk). So, if I didn't want to buy a stock for a long term investment, I'd go with the call debit spread. I think..... 🤔😁

I do these deep in the money calls all the time and here are a few things to review for better returns. 1) Both stocks with and without dividend can be used. 2) If dividend stocks are used, buy near and before the first X-dividend date and sell after the last dividend date for the time period chosen. 3) Since the stock may be called at any time the annual returns should be checked at 3 different locations. At first dividend date and this return should be at least the annual dividend yield. At the last dividend date and this should be an annual yield you want. At the date the option expires and this again this should be an annual yield you want. This yield may be higher or lower than the last dividend date. 4) For any option make sure to compare several strike prices. Also compare the percent down from the purchase price to the strike price. By comparing these two this will give you a risk reward for the different strikes.

I just started doing these in May24 with the options purchased out to Dec 24 / Jan 25 with the intent to sell an option each month going forward. Have you done any detailed videos on such a strategy?

Thanks for the video, it was very thorough and helpful.

If the underlying stock price rises significantly, how does rolling the CC further out help? 4:15 It would seem that extending the contract expiration would only increase the probability of assignment by allowing _even more_ time for the stock price to rise.

Hi In order to implement this strategy one needs to put BOTH a maximum price on the purchase price for the 100 stocks AND put a minimum price for the sell of the call option. How can I give both of these price limits (minimum for the sell and maximum for the buy) in a way that either both are executed or both are not executed (I don't want to buy the stock if I cannot sell the call option for the the minimal price and I don't want to sell the call option if I cannot buy the stock cheap enough)?

Interesting approach. I may try $ORCL to see how this works out.

Clear, concise & actionable.Gavin you are great teacher improving lives of many people !

Very good content. Thanks so much ❤!

Fantastic Sandra thank you!! If you ever do one similar to this but using a PUT for a downside move or maybe using the Price Rsistance or Price Support bars instead of trend lines that woud be good too. I think i can just reverse the process and it will work but in case there's soemthng else to be aware of.

Thanks for the greatg vid.

Thanks Gavin

TSLA, stable ? 👀

Optimal video. Great

Top tool, i use this and help me ti control my accoun

Would a spread been more conservative but probably less “profitable?

Another great video!

Great content! Thanks for posting. How can I download the options spreadsheet (and is it in xls or xlsx format)?

Gavin is great teacher .’if any one wants to get in-depth education his courses are great before you embark on to option trading.

Best option education .Gavin is amazing ! I have attended his mastering option course,great course from great teacher.prior to his course I was flying blindly.

Hello do you run a discord community??

Well done Gavin, a lot of useful information. Thank you very much

What would be impact on other Greeks theta vega & What if market moves sharply in other direction.Could you please give some insight How to handle it..

Hi one of your follower from India. New perspective however looks highly risky & timely adjustments would play a crucial role.

Very interesting the notion to hedging a position with a different asset no correlated

Thx for the video! If you would have a Delta Dollar position of 30 000/500= 60. Would you recommend buying 4 puts Delta 15 or any other combination? Thx!

Great video Thanks.

Hi Gavin! I can’t private mentoring related info in your website. Do you by any chance do that ?

Can you use a DITM covered call for dividend capture? Let’s say the stock is at 40, pays a dividend of .30 and you sell a DITM covered call with an extrinsic of .15, you can collect those .15 because the buyer of the call will exercise to collect the dividend. You only need to hold the stock on the ex dividend date and you can get assigned very quickly. I know these numbers are made up, but I think the principle would work. Have you ever tried this?

Interesting concept Gavin. Do you hold these to expiration and let the shares get called away?

Very interesting but I had a hard time following the entry template. Do you have another explanation ot this trade elsewhere?

Hello do you run a discord community?

What is the name of the site you work on during the explanation in this video?

Thank you Sandra. Is there a way to use user defined trendlines as a trigger for a purchase? I want to be able to draw my own line and set up a purchase based on a tag of the line.

This video is so valuable, thank you for posting. Posted the link over on my TOS and working on the setup

Thank You

Could we have a review of the import function?

@optionstradingiq in which cases is it better to hedge via underlying, vs adjustment of IC? Adjustment if IC will entail higher TX cost, but buying/selling underlying will entail lock up of more capital. Thx!

I always had trouble using this strategy. At start the pnl curve is similar to synthetic long, so if the underlying has not moved in your favour then you end up with huge mark to market losses. Is there a low cost adjustment possible in such a situation??