In Episode 4: Covered call campaigns and choosing strike prices, hosts Shane and Richard delve into the intricacies of covered call campaigns and the process of choosing strike prices. They discuss the potential for higher returns through the strategic use of covered call campaigns and the importance of strike price selection in maximizing these returns. The hosts also answer a variety of listener questions, providing further insights into the world of cryptocurrency trading.
- Understanding Covered Call Campaigns: Covered call campaigns can significantly drive higher returns. These campaigns involve selling call options on an asset you own, which can generate income and potentially offer some protection against price drops.
- Choosing Strike Prices: The selection of strike prices is crucial in covered call campaigns. The strike price should be chosen based on the trader’s expectations of the asset’s price movement.
- Rolling and Adjusting Covered Calls: The hosts discuss the strategy of rolling and adjusting covered calls. This involves closing a current position and opening a new one with a different strike price or expiration date, often done to avoid assignment or to stay in a trade.
- Risk Management: The hosts emphasize the importance of managing risk, particularly in terms of maintaining sufficient margin. They suggest keeping the delta close to zero and not exceeding 30% maximum margin usage.
- Bullish: The hosts express a generally positive sentiment towards covered call campaigns, highlighting their potential for higher returns. They also provide strategies for managing risk and maximizing profits, indicating a bullish outlook on the use of these strategies in cryptocurrency trading.
- Bearish: There is no explicit bearish sentiment expressed in the podcast.
- Neutral: The hosts maintain a neutral stance when discussing the selection of strike prices, emphasizing that it depends on the trader’s expectations of the asset’s price movement.