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Options Jive

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Trading When Time Permits

Options Jive

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

We promote having many positions with several strategies, and active management of winners. But what if someone wants a simpler version, yet still be engaged in the market?  What can be done in just 10 minutes a month?

With such little time, limit underlyings to a handful of ETFs: SPY, TLT, and a couple others would be sufficient.

One can also limit strategy to just the Covered Call. CBOE Indexes show the 30 delta Covered Call outperformed the S&P by 3% annually.

The 10 minute time commitment is the following: Every month or so, roll the call to the next cycle. This buys back the existing call and sells a new one in the next cycle (closest to 30 delta, 45 DTE).

Takeaways: It takes a minimal amount of time to become a more strategic investor by selling covered calls. Enhancing return and reducing risk could take only 2 hours a year and is well worth it. This also serves as a stepping stone to more active trading.

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