Group 1 - The article discusses the use of both in-the-money (ITM) and out-of-the-money (OTM) covered calls to align with current market conditions, emphasizing a strategy that adapts to market trends [1][10] - In a normal-to-bull market, OTM strikes are preferred for their potential to generate two income streams: premium and share appreciation, while in bear-volatile markets, ITM strikes are favored for greater downside protection [1][10] - The article provides a real-life example using Shopify Inc. (Nasdaq: SHOP), where three out of four call contracts sold were ITM, reflecting a bearish sentiment, while one was OTM, indicating a more aggressive approach [2][10] Group 2 - Shopify's stock price increased by 25.14% over the past month, outperforming the S&P 500, which rose by 12.45% during the same period [8] - The ITM $98.00 strike has a 32-day initial time-value return of 2.32%, with an annualized return of 26.42%, and a breakeven price point at $95.73, providing downside protection [12] - The OTM $117.00 strike has a 32-day initial time-value return of 2.11%, with an annualized return of 24.05%, and an upside potential of 8.66%, with a breakeven price point at $105.41 [12]