I am planning to sell covered calls. Please let me know candidate stocks to do it. I am willing to put 5-6k at the start. I do not want to enter low cap or super volatile stock. Reason being, with covered call i will put 5-6k which is a lot of investment and buying gamble stocks may lose it. Goal is to take premium and generate passive income. If possible, i want to hold that stock for long time. I feel intc(slightly overpriced but can buy 100 units in 6k), dbx(more volatile and can go back to 20s range), att(i will never go pass 40, but decent dividend) are possible candidates. Any more suggestions welcome.
$DKNG
yes, what do you think about pton ? will it robound back to 150 ATH ?
$AMC
TQQQ
Only do CC if you plan on exiting a position. Pltr about 3 weeks ago when it hit ATH was a great candidate. Personally I think it's hard to start selling CC since earnings are coming up and we are shit in the past week (mean reversion). You could do it on china tech stocks since the sentiment is ass and will probably depress the stock price for a while so you won't get assigned.
You can always rebuy or close out the trade for a small loss, no strategy is 100% but over time CC throws off extra
Small loss is relative. Depends on how long you held and greeks
You’ll make pennies for a lot of effort. What’s the point?
won't it be 50-100 / month ?
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Gazni, stop fighting for peanuts, go for sonepur mandir once again !
CC are for rich ppl. With 6k the highest you can go is 60$/share Good CC tickets are like qqq, msft, aapl, goog, amzn (I am a tech person so only can suggest in tech area) but all of the require more than 6k alternatively take a look at PMCC (or better add direct cash leverage instead?)
how about intel. i can get 100 stocks within 6k and try cc for a month. It is trading around 53 , planning to set 57 as a limit. How much do you think i can make if it stays around 53-56
how much? dte matters a lot. Then there is an earning season so expect inflated premium rn. If it stays under your strike you make 100% of premium imo: i am not bull on intc, I personally hold large position in amd
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Only do it for the long stock positions in your portfolio.
That's literally what a covered call is
yes, but minimum 100 stocks. I have some like pltr but i don't want to lose it so will not do it.