Weekly Income Strategy with IBIT Calls 📈
To generate weekly income from IBIT, I employ a well-structured strategy using covered calls. Since I own 100 shares of IBIT, bought at a lower price, this approach lets me extract value from my position while maintaining flexibility. Let me explain:
Strategic Use of Covered Calls
Given IBIT’s trading range ($58-$60) and an all-time high of $61, I’ve chosen to sell call options at a strike price of $72. This strike price aligns with my willingness to sell if the shares are called away, as it secures a substantial profit over my initial cost. Selling calls at this level maximizes the premium while avoiding the risk of prematurely parting with my shares below my desired exit price.
Weekly Premium Harvesting 🤑
By selling out-of-the-money calls, such as the $71 or $73 strikes (seen in my transactions), I capitalize on time decay (theta) and minor price fluctuations. My recent trades show an effective rolling strategy:
1. Sell-to-open calls: I sell calls at prices between $1.50 and $1.53, locking in premiums.
2. Buy-to-close opportunities: When IBIT’s price stabilizes or declines slightly, I buy back the calls at a lower premium ($1.31), pocketing the difference.
Why This Works
This strategy works well with a range-bound stock like IBIT. Premiums remain consistent due to volatility and the ETF’s strong resistance levels. Even if IBIT moves higher and the calls are exercised, selling at $72 aligns with my profit goals.
Sustainable Weekly Income
Each transaction generates quick profits (e.g., $0.20/share or $20 per contract), compounding over time. By adjusting strikes weekly based on IBIT’s movement, I can repeat this process for steady, predictable income while safeguarding my core position.
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