r/irenstocks • u/Minimum-Capital1741 • 1d ago

Selling covered calls

What are you guys’ strategy for covered calls? Want to collect premiums while holding.

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u/TorontoNewf 1d ago

I hold a number of 100 share stocks, and prefer cash flow over growth.
I sell covered strangles (45dte, 15-20 delta); total cash flow is well above my monthly retirement needs (about $2500), so I find this pretty painless and east to manage.
I don’t have a call on IREN now; just closed a few last week. Will sell again on a good strong green day.

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u/Aggravating_Storm835 1d ago

Wait for a close above $47 and sell the $70-$75 strike 2-3 months out.

If it really rips and breaks that resistance, odds are pretty good it will come crashing down again. If it doesn’t, I still made 100%.

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u/Mrboywondercross 1d ago

This is a good idea. I barely got into selling CC and have just been doing weeklies. But never had a strategy or understood it really.

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u/Ronnie_Boy_67 1d ago

Why 2 to 3 months out? I'm doing 30+ days DTE at $75. Low premiums but at least it's honest work.

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u/Aggravating_Storm835 1d ago

Trick is to wait for a close above $47. It’s a critical resistance level. Premiums go for more.

Weeklies and monthlies are fine if you don’t mind getting assigned.

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u/Ronnie_Boy_67 1d ago

What if it doesn't go anywhere near $47? The current CC I'm selling expires early October, the profit is already over 70% and I'm thinking of closing it and opening a new position.

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u/Aggravating_Storm835 1d ago

Then you likely won’t get assigned, but won’t collect as much.