My 1990 Covered Call Strategy - Eg for Today (Patreon)

Q's came in from my statement in my video yesterday. Day Ralio has it above. It is real simple. Let me walk thru how and what I did for years and years.

REM THIS STRATEGY NEEDS A FEW THINGS

1) analytical skills or a tool

2) intimate familiarity with select assets

3) patience and timing

Trading Strategy Overview

In the 1990s, my original trading method involved monitoring a limited number of assets—approximately six. The strategy was to establish positions, sometimes I would have them, sometimes I would buy write.

Key was to wait for price spikes, and then sell call options. This approach was heavily reliant on spikes in Volatility, leading me to develop a mean reversion strategy. At that time, calculations were done manually.

Example Trade: CLSK

Let's break down a trade I would do today using this strategy with CleanSpark Inc. (CLSK):

• Stock Purchase:

  • Current stock price: $11.50

  • Purchase 100 shares on margin: $575 (assuming 50% margin requirement) MARGIN IS KEY FOR THE ROI also u have to have it anyway to sell calls.

• Option Sale:

  • Sell a $12 Strike Call Option expiring in September for $2.04 per share

  • Total premium received: $204

• Return on Investment (ROI):

  • Investment: $575 (rem half margin)

  • Premium received: $204

  • ROI calculation: 204 / 575 = 35.5%ROI Note this is not 15% but a lot higher.

Summary

• Initial Investment: $575 (on margin)

• Premium Received: $204

• ROI: 35.5% for one month - this time varies on volatility , sometimes a month, sometimes 2 weeks, sometimes 6 weeks. Depends on the calendar and the premium available.

Hope this helps