How I Achieved 3.64% Profit in January: My Options Strategy
Achieving consistent profits in the market requires a calculated and disciplined approach. This month, I secured a 3.64% profit primarily through selling in-the-money (ITM) call options, capitalizing on market movements, and taking advantage of timing around high and low points.
Selling ITM Calls on High Markets 🚀
One of my key strategies is selling ITM call options when the market reaches higher levels. For example, when Palantir (PLTR) traded at $73, I sold a call option at $72, collecting a premium of $6 with 17 days left before earnings. This approach ensures that I generate income upfront while maintaining a buffer for any potential pullback.
Adjusting for Market Lows 📉
On the flip side, when the market is low, I strategically sell ITM calls slightly above the current price to allow for moderate upward movement. For instance, when SPYG dropped to $88, I sold a call option at $92. This gives me the opportunity to earn premium income while capturing some of the upside if the stock price rises toward the strike price.
The Benefits of ITM Calls 💡
This method works effectively because selling ITM calls provides higher premiums compared to out-of-the-money options. Additionally, these options have a higher likelihood of being exercised, ensuring profits are locked in even during volatile periods. By choosing expiration dates carefully—such as 2-3 weeks out—I strike a balance between premium value and time decay.
In conclusion, my success this month stemmed from combining strategic timing, market awareness, and the use of ITM calls. This approach allowed me to generate consistent returns, even during fluctuating market conditions. As always, staying disciplined and planning trades around market trends are essential to maintaining profitability.
For Pltr now it's trading at 73
I would buy at 73 and
I might sell a call at 72 taking $6 which works out to be $5/66 or around 8% of premium for 17 days if I trust that pltr earnings will be good .
There is always a risk
But that will be another story how we manange risk and reward and also my past Monthly profits can stomach some risk
Thanks for the support $SPDR Portfolio S&P 500 Growth ETF(SPYG)$
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