Options Jive

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Trading When Time Permits

Options Jive

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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