To The Moon

🐯 Why I Am Selling Calls Instead of Just Holding

When I buy a stock, I don’t want my capital to simply sit there and wait for the share price to rise.

One strategy I am using is selling covered calls against shares that I already own. A covered call means holding the underlying shares while selling call options against them. The trade-off is straightforward: I receive premium income, but I accept that my upside can be capped if the stock rises above the strike price.

My current example is Tiger Brokers (TIGR).

I have 300 TIGR shares, which allows me to sell 3 call contracts, assuming the standard 100-share contract size.

The objective isn’t to predict exactly where TIGR will trade four months from now.

My objective is to collect option income while I wait.

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💵 TIGR: Collecting Around $1.22 Per Share

Looking at my position, the call premium is approximately $1.22 per share.

With 300 shares, that works out to:

$1.22 × 300 = $366

So the premium I am talking about is $366 — NOT $3,660.

That distinction is important.

The $366 is my covered-call income.

Separately, I have approximately $3,660 sitting in money-market funds.

These are two completely different pools of money.

$366 = option premium

$3,660 = cash reserve

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🛡️ The $1.22 Buffer

The interesting part of the strategy is the potential downside cushion created by the premium.

If my TIGR shares cost approximately $4.98, collecting $1.22 in option premium gives an effective cost calculation of:

$4.98 − $1.22 = $3.76

This does not mean my shares cannot lose money below $3.76.

They absolutely can.

The $1.22 is simply a partial buffer.

If TIGR falls dramatically, the $366 premium will not protect me from the entire decline.

But if TIGR experiences a moderate pullback, having already collected premium gives me some additional breathing room.

That is one of the reasons I like the strategy.

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⏳ Why I Am Giving It Around Four Months

I am not trying to make a few dollars every few days.

I have extra cash available, so I can afford to be patient.

I am looking at roughly a four-month window.

That gives the stock time to move through different market conditions.

Maybe TIGR goes up.

Maybe it goes sideways.

Maybe it drops first and recovers later.

Maybe volatility increases.

I don’t need to know exactly which path will happen.

The covered call gives me another way to potentially make money while waiting.

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🏦 My $3,660 Cash Reserve Is Important

The second part of my strategy is the approximately $3,660 I keep in money-market funds.

I don’t want to deploy every dollar into stocks.

Why?

Because cash gives me options when the market gives me opportunities.

If TIGR falls substantially, I can consider whether the lower price represents a better entry point.

If GRAB falls, I can look at GRAB.

If CLSK gets hit during a Bitcoin sell-off, I can reassess CLSK.

If QUBT experiences a huge correction, I can decide whether the risk/reward has improved.

The key is that I don’t have to sell my existing holdings just to find money for the next opportunity.

💡 Cash is not doing nothing.

While sitting in a money-market fund, it can potentially earn yield while remaining available for future investments.

So my portfolio becomes a combination of:

📈 Stocks for growth

💰 Options for potential income

🏦 Cash for flexibility

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🦐 GRAB: A Lower-Priced Growth Candidate

One stock I would put on my watchlist is Grab (GRAB).

GRAB interests me because it gives investors exposure to Southeast Asian technology and consumer-growth themes.

From an options perspective, the attraction isn’t simply that the stock is “cheap.”

The important question is whether I am comfortable owning 100 shares.

Why 100?

Because one standard U.S. equity option contract generally represents 100 shares.

That means a smaller position can potentially be used to generate option income without needing a huge amount of capital.

For example:

100 GRAB shares → 1 covered call

200 GRAB shares → 2 covered calls

300 GRAB shares → 3 covered calls

This makes lower-priced stocks particularly interesting for investors who want to experiment with covered calls using smaller amounts of capital.

But once again, the rule is:

Don’t buy GRAB just because the option premium looks attractive.

I need to be comfortable owning the underlying stock first.

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⚛️ QUBT: Attractive Premium, Much Higher Risk

Then there is QUBT — Quantum Computing.

This is where I would become much more careful.

QUBT is connected to the highly speculative quantum-computing theme.

That can create enormous investor enthusiasm and significant price movements.

From an options perspective, high volatility can make premiums look very attractive.

But there is a reason the premium can be high.

The market is pricing in the possibility of large movements.

So I would treat QUBT very differently from TIGR or GRAB.

If I buy 100 QUBT shares simply because I see a huge call premium, I could end up holding a highly volatile stock after a major decline.

That is not the strategy I want.

🚨 The stock comes first. The option comes second.

If I wouldn’t be comfortable holding QUBT without the option, I shouldn’t buy it simply to sell a call.

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⚡ CLSK: Higher Volatility Through Bitcoin Exposure

Another stock on my watchlist is CleanSpark (CLSK).

CLSK is particularly interesting because Bitcoin-market conditions can have a major influence on the broader Bitcoin-mining sector.

That makes it a potentially powerful but volatile stock.

And volatility is a double-edged sword.

📈 Bitcoin rallies → CLSK could potentially move aggressively higher.

📉 Bitcoin falls → CLSK could potentially fall aggressively as well.

This is exactly why covered calls can look attractive on volatile stocks.

The premium may be higher.

But the underlying risk can also be much higher.

For CLSK, I would therefore focus heavily on position sizing.

I would rather sell calls against a position I genuinely want to hold than chase the highest premium available.

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🎯 My Four Stocks Have Four Different Roles

I wouldn’t treat TIGR, GRAB, QUBT and CLSK as identical investments.

They each have a different risk/reward profile.

🥇 TIGR — Income + Patience

This is my main covered-call example.

300 shares

3 call contracts

≈ $1.22 premium

≈ $366 income

≈ 4-month timeframe

I am comfortable giving the position time to work.

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🥈 GRAB — Growth + Potential Income

GRAB is a stock I would watch for a combination of growth exposure and options income.

The lower share price can also make position sizing more accessible.

But I still want to own the underlying company before selling calls.

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🥉 CLSK — Higher-Risk Income Candidate

CLSK offers exposure to the highly volatile Bitcoin-mining sector.

That volatility can potentially create richer option premiums.

But the same volatility can produce significant losses.

Therefore, position sizing becomes extremely important.

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⚠️ QUBT — Speculative Position

QUBT would be the most speculative name on my list.

The potential upside is exciting, but the downside volatility can also be extreme.

For that reason, I would treat it as a small, high-risk position, rather than the foundation of an income portfolio.

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📊 What Happens If TIGR Moves?

The beauty of a covered call is that several different outcomes are possible.

📈 Scenario 1: TIGR Rises Moderately

This can be a good outcome.

I collect my $366 premium, while my shares can also appreciate.

If TIGR remains below my strike at expiry, the call can expire without being exercised and I can potentially continue holding the shares.

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➡️ Scenario 2: TIGR Goes Sideways

This is potentially the ideal environment for a covered call.

The stock doesn’t collapse, but it also doesn’t explode above my strike.

The option loses time value as expiration approaches.

Meanwhile, I keep the premium.

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📉 Scenario 3: TIGR Falls

This is where the $1.22 premium buffer becomes useful.

The $366 premium offsets part of the decline.

But it is important not to call this full protection.

If TIGR falls $2 per share, I have received only $1.22 of premium.

I can still lose money.

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🚀 Scenario 4: TIGR Explodes Higher

This is the biggest opportunity cost.

If TIGR suddenly rallies far above my strike, I may have to give up the shares at the strike price.

That is the fundamental trade-off of covered calls: income today in exchange for giving up some upside potential.

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🚨 Don’t Sell Calls Too Close to the Price

This is probably the most important lesson from the strategy.

A call premium can look incredibly attractive.

But I don’t want to sell a call at a strike price that I would regret if TIGR suddenly takes off.

For example, if TIGR is trading around $5 and I sell a $5 call simply because the premium is high, I am effectively saying:

“I am happy to sell my shares around $5.”

If TIGR then jumps to $8, I don’t get to fully participate in that upside.

Therefore, when choosing a covered call, I look at:

1️⃣ What strike am I selling?

2️⃣ How much premium am I receiving?

3️⃣ How long until expiry?

4️⃣ Am I genuinely willing to sell my shares at that strike?

Only after answering those questions do I look at the premium.

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💡 My Strategy Is About Probabilities, Not Predictions

I don’t know whether TIGR will be higher or lower four months from now.

Nobody can know with certainty.

Instead, I am trying to construct a position where several outcomes are acceptable.

Moderate rally: 👍

Sideways market: 👍

Moderate decline: 🛡️ Premium provides some cushion

Huge rally: ⚠️ Upside may be capped

Huge decline: ⚠️ Stock can still suffer significant losses

This is why covered calls aren’t “free money.”

Tiger Brokers itself explains that covered calls are generally suited to investors who are neutral to moderately bullish and warns that the strategy limits upside while not protecting against significant stock declines.

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🏆 The Bigger Picture

My TIGR position is really an example of a broader portfolio philosophy.

I don’t want to depend on only one source of return.

I want to combine:

📈 Capital Appreciation

Own stocks that I believe have potential.

💰 Option Income

Use covered calls where appropriate to potentially generate additional premium.

🏦 Cash Reserves

Keep approximately $3,660 in money-market funds so I have dry powder when opportunities appear.

This is particularly important during volatile markets.

When everyone else is forced to sell because they have no cash, I want to have the flexibility to consider buying.

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🔥 Final Takeaway: Make Your Capital Work Harder

My TIGR example is simple:

🐯 300 TIGR shares

📞 3 covered calls

💰 ≈ $1.22 premium per share

💵 ≈ $366 total option premium

⏳ ≈ 4 months

🛡️ $1.22/share partial downside cushion

🏦 ≈ $3,660 separately held in money-market funds

And my watchlist can extend to other relatively lower-priced and volatile names such as:

🦐 GRAB

⚡ CLSK

⚛️ QUBT

But the strategy isn’t about chasing the stock with the highest option premium.

The premium is the bonus — the stock is the investment.

If I am happy owning TIGR, GRAB, CLSK or QUBT, then selling a covered call can potentially allow me to generate additional income while waiting.

If I’m not comfortable owning the stock, I shouldn’t buy it just because somebody is offering an attractive option premium.

For me, the ultimate goal is simple:

Own quality opportunities → generate income where appropriate → keep cash available → stay patient.

I’m not trying to predict every market move.

I’m trying to make my money work harder while keeping enough flexibility to take advantage of the next big opportunity.

$Tiger Brokers(TIGR)$  

$Grab Holdings(GRAB)$  

$Quantum Computing Inc.(QUBT)$  

Find out more here: Tiger Brokers | Market Rebound: Rally or Pullback? Capture potential opportunities. Stay Flexible with Options

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