Learn Covered Calls and Cash Secured Puts
Are you looking for a strategy to add extra dividend income to your long term holdings?

If so, I have the perfect educational content for you below 👇

In this course, I break down how to master covered calls and cash secured puts. I use these weekly within the market as it gives a 70-80% success rate upon entering each trade.

All 5 Star ⭐️ Rating on the course so far.

Check it out below 👇

Devin LaSarre's avatar
To anyone wondering: No, there is no free lunch. This isn't magical cash that the market is stupidly handing over to you.

There are many good books and even some exceptional free online resources to learn about options pricing and use cases.
Preston | Investor Insight's avatar
@devinlasarre I wrote that out in my previous post. This gives a statistical edge in every trade taken. This is a very concise way to learn options.
Devin LaSarre's avatar
@investorinsight There is absolutely zero statistical edge in that example. A focus on PoP/delta is not a strategy, and this is certainly not alpha-generative.
Preston | Investor Insight's avatar
@devinlasarre I create alpha with it every month as I partner it with technical analysis.
Devin LaSarre's avatar
@investorinsight In your example, you are holding QQQ, one of the most heavily traded ETFs in the world, which is tied to the underlying NASDAQ-100, one of the most closely tracked indexes in the world. You are selling .25 delta weeklies - a vanilla option with deep liquidity with an ocean of eyes watching. If you believe you are constantly generating alpha each week by selling calls, you need to believe that the rest of the market is not just mispricing vanilla options, but consistently mispricing them in your favor. Nonsense.

Even the beginning of the other post is wrong:

"Selling calls gives you the right to sell your shares at a certain price and date."

Selling calls gives THE BUYER the OPTION, not the obligation, to buy your shares a preset price. But you are also referencing AMERICAN style options, which can be exercised ON OR BEFORE expiration. It is EUROPEAN options that can only be exercised at expiration. By selling, you are saddled with an OBLIGATION. Part of that obligation is that you are also further restricted - you can't sell your underlying shares unless you first close the option or have L4 option access to keep the short call naked.

You may be making money, but it most certainly is not alpha from the option component. In all likelihood, given a longer timeframe, the option component is a negative drag.
Devin LaSarre's avatar
@devinlasarre FWIW, I have no issue with sharing information, or even charging for it if it's useful. However, mischaracterizing something, charging for it, and alluding to an expectation to profit isn't something I can support.

From the Gumroad:
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Preston | Investor Insight's avatar
@devinlasarre It might not be for you but many others are getting value from this content and adding additional income to their portfolios with this information.

Technically speaking, you are right, it gives the buyer the right to exercise instead of the seller the right, so that can be a wording that I can adjust for clarity. I chose that wording to simplifying options for beginners, but that could be a helpful distinction for some.



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