Brehs, here’s a quick short-term profit strategy.
Tried it today, and it worked well. If you're looking for a fast swing trade, give this a shot:
- Buy a strong, trending stock on Thursday.
- Sell a covered call for the next Friday to collect premium.
Example:
Yesterday, I bought 100 shares of MSTR at $321 and sold a $325 covered call with solid premium. The stock ran past $325, so my shares got sold, locking in an $800 profit.
If it stayed under $325, I’d still keep the $400 premium. From there, I could either sell the stock or roll into another covered call for the next week.
Simple, effective, and a great way to stack profits—
as long as you leave greed out of it. Yeah, I missed the full move to $340, but I don’t want to be tied to a stock like MSTR. I’d rather get in, secure profit, and move on. Scaling out takes longer and requires constant chart-watching, which is tiring.
Now imagine this with 1,000 shares—$8K profit in a week. Worst case? I get stopped out Monday and move on.
Might start doing this consistently—just eat premiums and get out.