Strike Selection After Rolling-Out Our Portfolio Overwriting Trades
Strike Selection After Rolling-Out Our Portfolio Overwriting Trades click ↑ 4 FeaturedPortfolio overwriting is a covered call writing-like trading strategy. There are 2 distinctly defined goals: generating cash flow + retention underlying shares. Since deep out-of-the-money (OTM) strikes are used to align with the goal of share retention, our % premium returns are expected to be significantly lower than those of traditional covered call writing. 4% – 15% annualized returns is a reasonable guideline range. ...