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![]() When the market rips like this, most traders either chase it or freeze. I’m doing neither — I’m collecting income on stocks I already own without giving up my upside. Covered calls are doing all the heavy lifting. Right now I’ve got premium rolling in from positions in IBIT, Snapchat (SNAP), Pfizer (PFE), Silver (SLV), Baidu (BIDU) and JD.com (JD). The goal is simple — generate consistent cash flow while holding shares I still believe in. My Current Covered Call Setup Take IBIT for example. I’ve got shares and I’m selling a $62 covered call. As of now, IBIT is trading around $59. If it pushes toward that strike, I’ll roll the position — probably out a week and up a strike, ideally for a small credit. I don’t want to lose the shares, but if they get called away, it’s not the end of the world. I just prefer to hang on because I see resistance in Bitcoin around $108,000 to $109,000. SNAP is trading around $9. I’ve got a diagonal spread set up with short calls around $10 to $10.50. That one’s unlikely to get called this week. PFE’s even easier — I’m short the $29 strike and it’s trading at $22 and change. That position’s a classic diagonal spread, long-dated calls paired with short-term covered calls on top. The rest — SLV, BIDU and JD — are just standard covered calls on shares I already own. I don’t plan on rolling any of these unless price pushes close to the strike. If we hover below the short calls into Friday, I’ll just let them expire worthless and reload the trades next week. Why This Works Right Now With the indexes making new highs and implied volatility still offering some decent premium, I’m not looking to chase. I’m already sitting at portfolio highs for the year. Now it’s about managing exposure, staying patient and getting paid. I don’t need to predict every tick — I just need to manage positions that are already working. If any of these names get called away, I’ll recycle the capital into something else. But my preference right now is to hold onto these shares and milk them for premium. That’s the power of covered calls in a strong market — you can make money even if the stock goes nowhere. You’re getting paid to wait, and if the stock pops, you still have options... Literally. I’ll keep adjusting as price action shifts. But unless we get a deep pullback, I’m not adding new longs. I’m harvesting income and managing risk — and that’s more than enough in this environment. How to Sell a Covered Call — Step by Step Let’s walk through a real-world example of how I’d execute a covered call on any stock of choice but using Lyft (LYFT) as an example. Nothing complicated here — just a clean, mechanical process that works when you stick to it. Step 1: Own at Least 100 Shares First things first — you can’t sell a covered call unless you own the shares. So if you don’t already hold at least 100 shares of LYFT, you’ll need to buy them. Let’s say the stock is trading around $17. That means you’re committing about $1,700 in capital. This is a trade that ties up cash, so make sure you’re OK holding the shares if nothing happens. Step 2: Pick Your Time Frame I like 30 to 45 days to expiration. It gives you enough time to collect decent premium, but not so much that you’re locked into dead capital. Let’s go with a 35-day expiration — that’s a sweet spot for balancing time decay and flexibility. Step 3: Choose a Strike Price Here’s where intent matters. If LYFT just ran 10% in two days and IV is pumped, I want to take advantage of that. I’ll look to sell a call strike maybe $1 to $2 above current price — something around the $18.50 or $19 level. That’s about 5% to 10% out of the money, which gives me upside room in case LYFT keeps running. And if it doesn’t? I still keep the premium. Step 4: Sell the Call Pull up your trading platform. Go to LYFT’s option chain. Select the expiration you want — say, 35 days out — and find the $19 call. Check the bid-ask spread. If the bid is 55 cents and the ask is 65 cents, I’ll try to meet in the middle and sell it for 60 cents. That’s $60 in premium for every 100 shares. If LYFT stays below $19 by expiration, that $60 is mine to keep and I can do it again next month. Step 5: Manage the Position Once the call is on, I monitor two things: the stock price and the time decay. If LYFT rips higher and goes through my strike, I can either roll the trade — buy it back and sell a new call further out — or let the shares get called away and take the profit. If LYFT trades sideways or drops a bit, I let the call decay. Once I’ve captured 75 to 90% of the premium, I’ll consider closing the trade early and reloading a new one. That’s it. Five steps. No guesswork, no emotion. Sell premium, protect upside and repeat the process until something better shows up. Covered calls aren’t flashy — but they work when you work them. I’ll see you in the markets. Chris Pulver Chris Pulver Trading Follow along and join the conversation for real-time analysis, trade ideas, market insights and more! Telegram: https://t.me/+av20QmeKC5VjOTc5 Important Note: No one from The TradingPub team or any of its associated brands will ever contact you directly on Telegram. *This is for informational and educational purposes only. There is an inherent risk in trading, so trade at your own risk. China's ¥1 Trillion Panic Move Just Exposed Wall Street's Secret ‘Liquidity Levels’ While traders debate the new U.S.-China trade deal… They're missing the hidden "Liquidity Levels" that formed after China's ¥1 trillion emergency injection — signals that predicted 24-hour price surges with 58% accuracy. Today’s Daily Chart Setup: Viasat (VSAT) By Jeffry Turnmire ![]() This idea came directly from my Daily Chart Setup that automatically signals potential plays.
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