AXON Reddit Mentions | ChartExchange

Let me start by this is all just my opinion and just explaining what I do.
I do this in a Roll Over with $800k currently (not a taxed) and $200k in a normal brokerage (Taxable)
My goal is to continue to make money on growing my long term holdings, while juicing the returns with selling CSP and selling CC.
To address why I don’t think everyone doesn’t do this, is options sound scary and complicated. The high majority of people do nothing with their investments other than some mutual funds in their 401k. Then a small amount of people expand out to widen that mix. An even smaller amount will pick some stocks, large cap stuff they know…. And the more someone is involved in their own account, that percentage of the population is pretty small.
Now throw options on that and we are at a very small segment of the population.
I invest my long term holdings in a very focused group of high growth stocks (Saul style if you are familiar with him and his forum).
In 2024 my return on my stocks only was 64.55%. With juicing that with options, I added another $175k to that which increased my return to 104.59%
That was a great year, but doing the same process I ended 2023 up 65.25% between stock and options.
This is what I do, I am not a professional or giving advice, I am just a guy on the internet who happens to go off the deep end when he starts to get into something.
In regard to the OPs questions about selling covered calls, when I do sell them I do a 30-45 DTE with a Delta of around .12-.16. Like you I want additional income, but don’t really want to loose my long term holdings. Worst case if it did, I’d sell a CSP on the same stock at the new price I’d get back in at.
I also use selling CC when I am balancing my portfolio. Say a position has gotten to a larger % of my portfolio than I am comfortable with, if I need to lower that position I may sell covered calls to do so. Then I get a premium, usually a good one as I have decided to sell close to the current strike price.
Although I generally only sell CC on high premium stocks, like MSTR. I don’t do a lot of selling CC as it ties up too much collateral for the return. I can use that collateral and make much more selling CSP on stocks I don’t mind owning, and then if I happen to get assigned (not super often) then I wheel them.
I sell CSPs with 30-45 DTE and a Delta range of .19-.26 depending on how I feel about what is going on with the stock.
I also do roll, but not often. I recently did with some of my AXON shares (my highest confidence position and largest holding). I recently didn’t sold one CC with a 45DTE that would have expired yesterday. and a strike price of $770 and I had received a premium of 7.60 ($760). AXON had a big run at the beginning of June and blew past $770 up to an intra day high of $806.64. I didn’t really want to sell them so I rolled them out to 9/19 and raised the strike price to $840. I lost $1,389.32 on the close side of the roll and made $4,619.34 on the sell side for a net premium so far of $3,230.02.
Anyhow, as I said I make more in premiums on the CSP side. My weekly targets for all option incomes are $5k for the Roll Over and $1.25k for the brokerage, with month goals of $20k and $5k respectively. For them most part I achieve these each month. I increase my goals as the portfolio grows and allows for larger collateral.
I am not ready to retire yet as I enjoy what I do (self employed fractional COO), but my goal is when I start getting close to be much more conservative with my portfolio and continue the options. Between them, Social Security (🤞), and a reoccurring revenue project I am working on, I am hoping to not have to touch what I have in my investment accounts.
So yes, options can be a great way to supplement income or juice yearly returns.