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Originally Posted by RevYouUp
Which stocks are you selling covered calls on? How far out? In the money or out? I've been selling covered calls on green days only when the premium goes up, so not consistently.
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I sell CC's on anything in the S&P500 so you know they're good companies, they need to have weekly expirations because I sell with a 4 week expiration. When choosing the stocks, I look for oversold RSI and near the bottom of the Bollinger band. Strike is at a 30 delta so about a 30% chance of ITM expiration. I stagger all my options expirations I have something expiring every Friday...easier to manage than having 50 contracts expiring on the same Friday every month.
In the TFSA, it's important to not let your shares get called away too often because CRA will accuse you of running a business in the account. If it looks like your contract is going to expire ITM, roll the contract diagonally (higher strike, further out). I tend hold my shares for at least 6 months before letting it expire ITM... also saves me money because Questrade has an insane $25 exercise fee...