To The Moon

Bought some to sell covered callS one day 

What Are Covered Calls? 💰📈

A covered call is an options trading strategy where an investor who owns 100 shares of a stock or ETF sells a call option on those shares to earn premium income. It’s a way to generate extra cash while holding a stock, especially if the investor believes the price will stay relatively stable or rise slightly.

How It Works 🛠️

1. Own 100 Shares – You must already own at least 100 shares of the stock or ETF.

2. Sell a Call Option – You sell (write) a call option at a chosen strike price (the price at which the buyer can purchase your shares).

@Daily_Discussion @TigerStars  @TigerStars 3. Collect Premium – The buyer pays you a premium upfront for the right to buy your shares if the stock reaches the strike price before the expiration date.

4. Possible Outcomes:

• If the stock stays below the strike price, you keep your shares and the premium as profit.

• If the stock rises above the strike price, your shares may be called away (sold) at that price, but you still keep the premium, reducing your cost basis.

Why Sell Covered Calls? 💡

✅ Generate Passive Income – The premium you receive is yours no matter what.

✅ Reduce Risk – The premium helps offset potential losses if the stock drops.

✅ Exit Strategy – If you’re okay selling at a set price, this locks in a profit.

Downsides to Watch Out For ⚠️

❌ Limited Upside – If the stock skyrockets, your gains are capped at the strike price.

❌ Stock May Drop – The premium helps, but it doesn’t fully protect against losses.

Example (Using QYLD)

Let’s say you own 100 shares of QYLD at $17. You sell a $18 covered call for a $0.50 premium per share. If QYLD stays below $18, you keep the premium and your shares. If it goes above $18, you must sell your shares at $18, but you still profit from the sale plus the premium.

Covered calls are a great way to make your stocks work for you while waiting for the right selling price! $Global X Nasdaq 100 Covered Call ETF(QYLD)$  @TigerTradingNotes