I try this on QQQ recently + selling put, details ...
I sold ratio covered call 2:1 on some of QQQ position (as an experiment) when QQQ was 529 last week, with a combination of selling put
For example, if I have 100 shares of QQQ, i would sell 2 covered call with March 21 530 strike price, and the premium was $16, At the same time, I sell 1 put with March 21 530 strike price as well, and the premium was $14.
So, in total, the premium i collected was 2*16+14 = $46.
If QQQ continue to rise, my breakeven point would be 530+16+14/2 = 553
If QQQ drops, half of that $46 will protect my downside drawdown, and half of that $46 would allow me to buy additional QQQ at 507. So basically, if QQQ drops from 530 to 507, I am fully protected. Even better, if I dont mind temporaily drop, I can basically buy more QQQ at equialvent of 530-46 = 484, and still keep all the original shares.
The max profit for this strategy is if QQQ magically close near 530 in March, I would collect all of that $46 premium for free:)
This is very useful for index such as QQQ, especially when it approach a local 5th wave high, as the chance for it to break 553 by March, although still there, does not have a high probability.
Even if QQQ does make a breakthough and try to go to 553, it would have to first break the previous high at 539, which is an earlier signal to close these hedge with minimal loss.
我卖了2年多CC，发现不管怎么小心选时间点、选strike，市场总会给我意外。那种股价扬长而去的感觉很不好。所以后来改卖call spread（卖出otm call, 买入同等数量的更otm的call），收的premium会少很多。但如果股价上涨太多，至少long leg可以带来不错的收入。
最近我又喜欢上另一种卖法了，即卖出 call ratio spread。具体操作是买入atm call，卖出2倍数量的otm call。这样收到的premium更少，甚至基本持平。 但这个好处是股价只要有稍微上涨，long leg就能有收获。 所以在股价缓慢上涨的时候，心态跟单纯卖CC很不一样，你会乐于见到股价再涨一点。 :)
这个策略在任何时候都可以open （但IV不要太低，要不然卖不出好价钱），而不用像卖普通CC那样希望只在股价高点时才卖。 因为股价在低点的时候，反转上涨概率也大， long leg正好能发挥作用。
这个策略是负gamma正theta的，希望股价缓慢温和上涨。 如果open以后股价急速上涨，需要及时调整。一种调整方法是股价在即将达到short strike时，一点点buy to close short leg，把比例从1:2降到1:1.8或1:1.5或更低。 这样能把负gamma降下来。
举个例子， nvda现在129， 我可能会买入1倍Feb21 C130， 卖出2倍C135, 每组credit 1.5左右。 也可能卖出C136，这样credit会小于1 。可以看到premium比单纯卖出135少很多。但这个组合保留了额外获利（max gain 5)的希望 :）。 这个组合的BE点在141.5，超过141.5就亏损了。 但如果单纯卖出C135， BE点是138.8。所以各有利弊。
btw，这个策略选过期日的时候不要选ER那一两周。 ER周iv很高，表面上卖的时候能收更多premium，但被击穿BE点的概率更大，不值得冒险。
也许少赚一些，但是省事省力。
我是股票为主， option为辅。尝试各种策略对我是件很有趣的事。 :)
especially when combined with elliot wave, when index is approaching late part of 5th wave
for a good downside protection, one would consider selling ATM or even ITM calls.
I sold ratio covered call 2:1 on some of QQQ position (as an experiment) when QQQ was 529 last week, with a combination of selling put
For example, if I have 100 shares of QQQ, i would sell 2 covered call with March 21 530 strike price, and the premium was $16, At the same time, I sell 1 put with March 21 530 strike price as well, and the premium was $14.
So, in total, the premium i collected was 2*16+14 = $46.
If QQQ continue to rise, my breakeven point would be 530+16+14/2 = 553
If QQQ drops, half of that $46 will protect my downside drawdown, and half of that $46 would allow me to buy additional QQQ at 507. So basically, if QQQ drops from 530 to 507, I am fully protected. Even better, if I dont mind temporaily drop, I can basically buy more QQQ at equialvent of 530-46 = 484, and still keep all the original shares.
The max profit for this strategy is if QQQ magically close near 530 in March, I would collect all of that $46 premium for free:)
This is very useful for index such as QQQ, especially when it approach a local 5th wave high, as the chance for it to break 553 by March, although still there, does not have a high probability.
Even if QQQ does make a breakthough and try to go to 553, it would have to first break the previous high at 539, which is an earlier signal to close these hedge with minimal loss.
This has worked well so far.
but definetely worth trying.
油水了。不过我看准了，会卖ATM。现在期权便宜，太OTM，不好roll
但是spread跟纯short CC相比，至少max loss是限制住的， 卖spread就是为了防止大涨暴涨。
我有正股cover住的， 不是裸卖call spread。
如果单纯卖135 CC， credit 3.8, BE 138.8;
如果单纯卖140 CC， credit 2.4, BE 142.4;
130-135这个ratio spread，credit 1.5，BE 141.5，跟卖140CC 相差不多，但留有额外再盈利5的希望。
看个人的风险偏好了。