sub
Active Member
Thing is, let's imagine you had 5160 $TSLA, why would you sell any of it? With that kind of capital (assuming the SP is a least where it is now), you can just eep selling covered calls for your living expenses. Where it becomes less obvious is when you need a large amount of cash out, like my situation, for a house, then you may have other options, like borrowing against the shares (I took a mortgage at a stupid low rate), plus I have a year or so to save up the costs of the renovations, so some planning can help there. And what's paying for the renovations, you guessed it, covered calls...
Of course selling covered calls can turn into the wheel selling puts but any given Friday
Yes, of course, and this is my plan. My thinking is, as I buy more shares, which then allows me to sell more calls, I can buy more shares faster. My other goal is that I don't end up with less shares than I had when I started selling options. I was too scared to do it for all these years, now I'm kicking myself. I've held Tesla shares since early 2013, only being out briefly to pay off some student loans etc, then got back in at almost the exact same price. Lucky. My goal is to grow my account and just live off of the option premium. I also have income producing real estate and will be adding more in the next 2-3 years. I might use a little bit of the proceeds in the next few months to do some work on my house, which I'm turning into an Airbnb next year.