I met with a friend recently who told me they’ve gone all-in on a few covered call ETFs. The appeal is clear — they can generate steady monthly income by writing options on top of a stock or index position. For income-focused investors, that regular cash flow looks attractive, especially in sideways or choppy markets. Just wondering if others here have looked into this or are doing the same? Right now I’m focused more on growth, but I like learning about new strategies so I can potentially allocate a portion of funds toward it later when it makes sense. My friend is reinvesting everything back as he's still young --- but with a good account size, I heard this can really be a great option for those who want to be hands-off.

As the market has been stabilizing, we are restarting the monthly passive income strategy. Here are some of the recent trades we made: AAPL +6% in 37 days expired last week with full profit BRK.B +7.3% in 64 days expiring this week with full profit COST +10% in 53 days expiring this week with full profit For the monthly passive income strategy, we focus on entering one trade a week​​​​​​​​​​ and finding trades with a probability higher than 90% (ideally 95%) We mainly focus on blue chip companies when they are at a good price ​to further enhance our win rate and lower our risk So the monthly income formula is: Blue Chip + Good price + Selling options = High win rate with predictable cashflow Cheers, Eric ---- Eric Seto Chartered Professional Accountant (CPA) Chartered Investment Manager (CIM) Founder of 5MinInvesting.com In September, my goal is to help 10 people without a financial background to master investing through Investing Accelerator. Investing Accelerator is designed for people without a financial background. The goal is to achieve 30% return per year. In the first phase, you will learn long term investing and targeting 30% for tax free compound growth. This will help accelerate your overall wealth. In the second phase, you will learn monthly passive income to provide a more predictable cash flow (target 30% per year) which can cover your expenses. This will help accelerate your retirement goals. Here's a step by step guide on how to join Investing Accelerator for free: https://www.skool.com/invest-retire-community-1699/how-to-join-investing-accelerator-for-free If you are interested, then let's hop on a call to see if you can benefit from the strategies in Investing Accelerator and get 30% per year. During the call, we will map out exactly how you can achieve 30%, what you are lacking, how you can improve.

Since AVGO is releasing earnings today, I sold OTM puts making about 4.5k. Post earnings the stock is going up, yayy, will pocket the 4.5k tomorrow I thought of doing safer strategies like Iron Condor, Calendar Spreads, Iron Butterfly, Strangle etc.. but went with my bread and butter puts and it paid off.

In this series, I would like to focus on the best strategies for playing earnings. My goal is to provide you with safe strategies so risk management is essential. - Risk Management: Don't risk more than 1% of your capital on each earnings trade. Initially even paper trade these till you become confident. - Expected Move (EM) vs Actual Move (AM): If you add the ATM call and put prices, it gives you the expected move. For earnings calculating the expected move tells us how much the stock can move either side post earnings. But for earnings usually the actual moves are lower than the expected moves which is what we want to take advantage of - Stock Selection: You can goto a paid website like market chameleon or any others where they list the stocks EM vs AM history. Use this data to pick the stocks where historically the AM stayed under EM 70% of the time or higher. Pick stocks with good liquidity and enough history. - Strategy 1: On the day of earnings (15 min before market close), Sell a ATM call and ATM put and buy far OTM (say 5 delta) call and put. Close this 10-15 mins after market opens next day - Strategy 2: A much safer strategy. Sell call and put at 2 times EM. Say the EM says stock will move by 5%, then sell a call and put at 10% OTM. Then buy even farther out call and put. This will create a very safe Iron Condor. Close this 10-15 mins after market opens next day - Strategy 3: Safest strategy. See the stock's historical maximum single day drop percent and max single day increase %. Use these and sell call and put beyond these percent drops. Then buy even farther out call and put. This will create the safest Iron Condor. Close this 10-15 mins after market opens next day Feel free to ask me if you have any questions.

ORCL crushed earnings. Stock is up 22%. Based on our previous earnings thread, this is what I did - Sold 14% OTM puts (and then bought cheap 3 cents puts just to cover for any margin call if stock crashes). Will get 11.1k from this - Sold a smaller lot of 7% OTM: Will get 4.8K from this - I will close both of these tomorrow morning for a total profit of: 15,900$