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In this video we are talking about selling covered calls. Specifically, we are continuing to back-test and iterate on the VERY BEST WAY to go about selling covered calls every single day on an index ETF such as the Russell 2000 ETF (IWM). In this video we explore which covered call strategy works the best from a total returns perspective factoring in the 10 Delta, 20 Delta, $10 Target Premium and $20 Target Premium Covered Calls. ---------------------------------------------------------------------------------------- JOIN THE PATREON COMMUNITY! ➡ https://www.patreon.com/AverageJoeInvestor WANT ACCESS TO ALL OF MY SPREADSHEETS I USE ON THE CHANNEL ALONG WITH THE MONTHLY DIVIDEND STOCK SPREADSHEET AND INSTANT AWARENESS OF CHANGES TO MY PORTFOLIO? JOIN THE PATREON COMMUNITY! ----------------------------------------------------------------------------------------- ➡ https://www.patreon.com/AverageJoeInvestor You can also Work with Joe 1 ON 1! Want to increase your option selling knowledge and get started! ----------------------------------------------------------------------------------------- 🔴 Partner With Me - [email protected] ----------------------------------------------------------------------------------------- This communication/content is for informational purposes only and is not intended as personalized investment advice, tax, accounting or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon for purposes of transacting in securities or other investment vehicles. ------------------------------------------------------------------------------------------ Key Points About Selling Covered Calls || How Covered Calls Work Selling a covered call means you own at least 100 shares of a stock and sell a call option, giving someone else the right to buy your shares at a set "strike price" before the option expires. You collect a premium for selling this option, generating extra income from your stock holdings. Your maximum profit is the premium received plus any stock appreciation up to the strike price. If the stock stays below your strike price (e.g., 30% above current price in your strategy), you keep both the premium and your shares. If the stock rises above your strike price, your upside is capped: you keep the premium and get the 30% gain, but miss out on any gains above that strike price. Your maximum loss is the stock price dropping to zero, offset only by the premium collected. When Covered Calls Work Best Covered calls are ideal when you expect the stock to be flat or only moderately rise-not for highly volatile or strongly bullish stocks. The strategy can be used to generate income in sideways or mildly bullish markets, or to set an effective selling price for a stock you’re willing to part with. You give up potential profits above the strike price-if the stock soars, you only get up to the strike price plus premium. The premium provides limited downside protection; if the stock drops significantly, you still face losses, just slightly reduced by the premium. Assignment can occur any time before expiration if the stock price exceeds the strike price, requiring you to sell your shares. Tips for Your Covered Call Strategy Selling calls 30% above the current price is conservative; the likelihood of assignment is lower, but the premium collected will also be smaller. The higher the strike price (further out-of-the-money), the less income you receive, but the more upside you keep. Monitor your positions, as you may want to adjust or "roll" your calls if market conditions change

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