Covered Calls: How to Create an INCOME MACHINE (Easily)



Grab your spot at our trading workshop: http://bit.ly/3YwRNo7 #coveredcalls #incomestreams #optionsstrategy *SMB Disclosures* …

10 thoughts on “Covered Calls: How to Create an INCOME MACHINE (Easily)”

  1. Good day Seth…Thanks for your informative videos.I would like to ask. What happens to your synthetic covered call if your short call expires in the money since we don't own 100 shares but a leaps? Do we lose on our trade or what? Please advice as I get confused on these one.Regards. Tshepo Mmotla- South Africa

  2. Definitely. Just did it. If it is a long term hold ; and exercised, you would pay CG.( Buyer could exercise at anytime)

  3. Is it more prudent to sell itm at say 80% delta in the flat to declining market for more protection. How would i calc profit on an itm trade. Would it still net out at extrinsic value only?

  4. I think you have another video that says you can initiate a covered call campaign against the S&P. Is that correct?

  5. DO ANY of the SMB videos properly discuss the RISKS of the get-rich-using-this-options-scheme ??
    NOPE.
    LOL

  6. If the shares only 1 time fall below your strike – you can lose infity of money …. why not mentionned here – as if this would work never ending?? I mean – you need to present both side of the deal and RISKS also

  7. Good clip Seth, thanks. I like selling the weeklies ATM and then rollling. You end up collecting more premium since the weekly premium is higher than the monthly. Just add up 4 weeks of ATM calls to verify. I like the weeklies that have premiums of at least 2 percent. Thanks.

  8. The same strategy can be utilized in the precious metals ETFs GLD and SLV, putting to rest Warren Buffett's argument that gold doesn't pay dividends.

  9. Not touched on: You now have a short term capital gains on those assigned shares, the gains on the covered calls are also short-term taxed, so the real yield is a good bit lower. You also missed out on the ~$1.4 per share from having to repurchase above the assigned strike. Also, it's possible that the stock drops such that you risk selling a call above your cost basis. Just things to consider.

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