beginners corner

BCI PODCAST 52. Making Money Selling Options with Technology Stocks

Watch Video:

Listen To Audio Version:

Selling options using large-cap tech companies like Apple or Amazon and many others can be challenging due to the high cost. Using the exchange-traded fund, QQQ, is a great way to accomplish these strategies at a relatively low-cost and still have the large-cap tech presence. Option-chains, calculators and annualized returns are the focus of this podcast.

BECOME A BCI MEMBER TODAY:
PREMIUM MEMBERSHIP

SEE BCI COURSE & PRODUCTS :
BCI STORE 


STOCKS,TRADING,STOCK MARKET,COVERED CALLS,,Axsome,Therapeutics,Ellman Calculator,gap-up,cost-to-close,,Alpha,Beta,seeking,alpha,cost-basis,time-value,intrinsic- value,put-selling,collar calculator,,stock option,facebook stock,amazon stock,,options,Option,,,in the money,in the money coverd call,out of the money covered call,

About Alan Ellman

Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog.. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies.

2 Responses to “BCI PODCAST 52. Making Money Selling Options with Technology Stocks”

  1. Sunny April 22, 2021 4:06 am #

    I’m using PCP strategy on QQQ in one of my accounts. I started in 11/25/2020 and generated 5.20% returns to date (would be around 13-14% if annualized). Might look not that much, but as this was the first time I was implementing PCP strategy I was overall cautious selling deep OTM puts only. None of my puts were assigned so far, even if it was close during the tech selloff in early March this year. I plan to be a little more aggressive in future. My goal is to generate 15-20% annualized returns using QQQ PCP strategy. The only downside I see so far is that as I don’t want to put any additional funds into this account it’s difficult effectively to use all the cash I have. At current QQQ prices ($340) for 50K account you can sell only 1 QQQ contract and roughtly 15K will be hold as a cash, but I found that other tech ETFs can be used as replacement for QQQ (XLK, VUG). So for 50K account you can sell 1 QQQ contract + 1 XLK contract that trades around $140-145 now. Another solution might be selling 1 QQQ contract and buy QQQ stock for the rest.

    Sunny

    • Alan Ellman April 22, 2021 4:51 am #

      Sunny,

      In our current near 0% interest rate environment, an annualized return of 13% – 14% using a low-risk strategy does look impressive.

      Keep up the good work.

      Alan

Leave a Reply

Optionally add an image (JPEG only)