By rolling Covered Calls and Put Vertical Credit Spreads, you can make easy income. For the week ending September 14th, I earned over $800 in premium. These were passive trades in the sense that I could make them in just a couple of hours of work.
Schwab keeps things easy by allowing you to select a rollout strategy. For instance, for a Covered Call, I can select a RollOut Call and it shows both the closing position and opening position in the same trade. You can select the existing and desired contracts and see your results in one place. Here is what the screen looks like in Schwab.
I have found that I have a lot of contracts that can be rolled for good profits each month. It makes it easy to get in and out with a nice premium. During the week I roll my Covered Calls typically on an up day and my Puts on a down day. That way I am able to get the best premium. Also, I focus on the contracts that are in the money or near the money. This is primarily to avoid being assigned or taking a loss.
One warning here. The only contracts where I have been assigned are related to the Ex-Dividend dates for the stock. So it is important to keep an eye on these dates. If you want to learn more about rolling options I wrote a post and YouTube video that goes into more detail. Rolling a Credit Spread deep in the money.
I released a YouTube video back on September 17th that really includes two videos on one. I recorded a video early in the week talking about my planned trades. That video has been incorporated in the one below so you can see how my week went. I had 9 positions expiring this week. View the video below and learn what I decided to do and why I made the decisions I did rolling Covered Calls and Put Vertical Credit Spreads.
Thanks, and Happy Investing!!
