re: Could you guys live with a 1.5% weekly gain in the market?

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EOW covered call strategy on weekly options.

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Do you just pick a strike price that is way out of the money?

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How much cash would you have deployed on any given week? If it's 100% you'll guarantee loss of principal even when the central banks are targeting low volatility.

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Maybe I’m misunderstanding your post, but he said he’s selling calls not buying them.

I know it works with one issue.

A catastrophic event in the market the last 90 mins of the week, but you would still own the stock because the call would go un-exercised so you’re not losing everything.

If you guys are so smart, find a strategy on your own, you don’t need my 1.5% per week idea.

Sure do.

What you don’t understand is that I want the call to be exercised because I made my 1.5% in the call premium even with someone getting the stocks from me at the strike price.

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And if the underlying stock decreases?

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This is a late in the day strategy and the call would be far enough in the money to get called, unless, like I said, an event that fricks the entire market in the last 90 min or less.

But you would still own the stock so you won’t lose everything.

This is like betting every black and red number in roulette.

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Stock selection is obviously the most important aspect.

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This is key but market direction is also an important variable.

Every dime is on the sidelines Mon-Thur in this strategy.

Options can be sold for premium-based income. Can be consistent income if you know what you’re doing. Never have done it that late before. Still not sure how feasible of an idea that is.

I don’t think you can get a 1.5% premium 30 minutes before expiration.

For example, SPY is at $326.52. The 100 shares need to sell an option would cost $32,652. So, you would need to sell an option for $490 for your 1.5% gain. Who is paying a 1.5% premium minutes before expiration?

August 3rd calls at a $320 strike price are selling for $6.82/share. That is only a $0.32/share premium over the current share price. That nets you $32.

Honestly, I think he is forgetting the fact that if he sells a deep in the money call that he is obligated to sell his shares at the reduced strike price.

Name one stock that you can get a 1.5% option premium on 30 minutes before expiration.