In the latest Options Income Weekly, I discuss the recent market sell-off and why we’re making a pivot to selling calls on a number of positions in the current market environment.
Last week, the major indices delivered their worst performance since 2020. Stocks were savaged by fears of inflation, recession and higher interest rates, with the S&P 500 falling nearly 6%.
As I’ve been discussing in recent weeks, we’re adjusting our tactics at Options Income Blueprint in light of recent volatility. This has included selling puts that are further out of the money and closing positions earlier to lock in profits.
Last week, it also involved accepting shares on a number of positions rather than continuing to roll our puts. While I know many option sellers prefer to sell puts, sometimes the math of selling calls is simply much more favorable. Plus, selling covered calls allows us to capture potential appreciation in the underlying shares in addition to generating income.
In today’s video, I take a closer look at the math behind this decision and the benefits of selling calls in the current market.
The whipsaw trading we’ve been experiencing is likely to continue for the foreseeable future. While volatility will not determine the stocks we trade, it will continue to determine the tactics we use to keep the cash rolling in.
267 Kentlands Blvd #225
Gaithersburg, MD 20878
P. (866) 257-3008
(Monday-Friday 9:00 AM-5:00 PM EST)
Publisher of actionable and proven strategies and tactics to help investors build wealth and reach seven-figure portfolios.
Get notified about new articles, special events, training, and much more
Leave your info below to get more options and trading ideas to your inbox
Yes, send me news to my inbox.