EASY MONEY with COVERED CALLS: How I Earned 10% Profit in Just 3 Months!

[@StockandOptionMyLifeOfLearning]

💰 Join my Patreon to get all my Live Trade Alerts, Open Orders and Weekly Top 5 Stocks: www.patreon.com/mylifeoflearning 💯 My Options Trading Course: mylifeoflearning-randy.mykajabi.com/offers/EgeavtWJ 🔔 Subscribe to this channel for Free stock and option trading Tips: kzbin.info 📕 Get a copy of my My Option Trading eBook "New Beginnings: The Option Trading Story" www.patreon.com/mylifeoflearning/shop/153029?showEditSuccessToast=true 📕 📈 Purchase My Spreadsheets (as seen in my videos): etsy.me/3HHq5ge 🧐 My Favorite Software for Backtesting Options (exclusive discount): bit.ly/4cyviXQ 🪬 Protect your trading account & online data with the VPN I use (special discount): go.nordvpn.net/aff_c?offer_id=15&aff_id=101790&url_id=902 👉 Seeking Alpha: Special discount with a FREE 7-day trial using this discounted affiliate link: www.sahg6dtr.com/B37MNP/R74QP/ 📺 Watch Next: Covered Call Option Trading Explained with Examples: kzbin.info/aero/PL3j38I2YtGw0GuZi4OOSzGcx3Oq_SMr2K

[@alexderkach1861]

Thank you! Great video!

[@StockandOptionMyLifeOfLearning]

Thank you 😊

[@mortenmortensen1295]

Nice video, Randy. Covered calls are great for sure!

[@StockandOptionMyLifeOfLearning]

Thank you Morten 😊

[@tonny9168]

Thank you so much, Randy. I learnt a lot from your videos, especially trade management. Quick question: you used a lot of dividend stocks in covered call trades. Do you always have good liquidity, especially when it comes to rolling in the money options? Also, you stated in one of the videos that you used to trade a lot of credit spreads but moved to CSP and covered calls because your account grew bigger. Is there any other reason why you stop using credit spread? I love your videos about credit spread for the Amazon trade.

[@StockandOptionMyLifeOfLearning]

Thank you for that! The liquidity really depends on the stock. Some dividend stocks have a lot of open interest and others don't. I prefer to trade higher open interest options, but I am willing to trade lower interest ones also. I just keep on mind that I have to be patient if I need to roll the position. I have one REIT I trade (ESS) that I have done really well with and it usually has less than 10 open interest contracts in the strike prices I've traded over the past several years. You just can't expect to get in and out of them really fast. When it comes time to roll them, I plan that several days ahead to give me time to work the trade. But generally market makers jump in and I get filled for a fair price. It just might not get filled for a fair price, if you're trying to get it filled quickly. If I was not willing to take assignment on low OI options, I would probably not trade them. I like credit spreads. I like everything about them, except I don't like spending the money on the insurance. If I'm trading a position that I think is more volatile, or I just want some protection in case the bottom falls out of stock, then I do still trade credit spreads. I just keep in mind that they're difficult to adjust if they go in the money. The other thing I don't like about them, is that sometimes traders who use them use way too much leverage. Here's a video series on credit spreads that I think will help show what I like and don't like about them: kzbin.info/aero/PL3j38I2YtGw272tus6umU_zxFdwnJ8E0c

[@tonny9168]

@StockandOptionMyLifeOfLearning, thank you so much for the detailed reply. I learned a lot from your KZbin videos, and my trading has improved a lot (I hope I don't jinx myself). I have been using credit spreads to manage my trades. If PMCC or covered call gets in the money, I just run, put credit spread on the opposite, and then decide what to do on expiration ( in most cases, I will roll). Yes, credit spread is great, but people get in trouble when they overleverage. Be blessed, Randy, and good luck in your trading.

[@jaer5]

Great video!

[@StockandOptionMyLifeOfLearning]

Thank you 😊

[@KurtVogel88]

Magnificent. Very well done.

[@StockandOptionMyLifeOfLearning]

Many thanks!

[@sassylinda4617]

Would KR still be a good covered call company?

[@StockandOptionMyLifeOfLearning]

I don't think KR is undervalued anymore. I believe it's more fairly valued. So, if you're comfortable trading options in a fairly valued company, it might be worth considering. However, I'd wait until after earnings. It's supposed to announce earnings in 2 days.

[@sassylinda4617]

Ok great. Thanks so much.