Covered Call Strategies

• Sell 4 weeks/5 weeks covered call for stock when VIX is under 20 , SPX is up trend and no earning report for the stock in contract month.
  
• During first two weeks ( weeks 3 in 5 weeks contract ), buy back the options whn its value drop to 20% of the original premium or less.
• During week 3 ( week 4 of 5 weeks cycle ) of contract period, buy back the options when the ask is 10% or less of the original premium.
• During week 4 ( last week ) of the contract , buy back the option at any price if we feel necessity to sell the underlying equity immediately.
• If at any time during the contract period you have reasons to believe that a stock will drop dramatically in price, buy back the option at any price, sell the stock , and immediately move the cash into another period.
• Rolling down when buy XYZ@38, sell $40 call at $2. One week later price drop to $35 nad option value drop to $.40 ( drop to 20% of value). At the same time the $35 strike is selling at $2.0. Rolling down generate additional $160. If the stock above $35 after expired, income =$200+$160,loss from stock $38-$35 = $300.Profit $60.
• Hit the double strategy :Buy back the options when t meet our 20%/10% requirements, sell the same option strike and month again if stock and option price up.
• Convert dead money to cash profits, consider when there is dark cloud hanging over the stock.There is nothing wrong with selling a stock that is not performing.Closed all the position.
• Exit strategies near expiration Friday, if price at or in the money, you can either rolling out(Rule price In the money ), rolling out and up( Rule price ITM ) or no action.