SOXX Reddit Mentions | ChartExchange

Well, most of my gains aren't from selling options. Two stocks that I happen to actually like also happen to be quite volatile, APLD and UUUU. I sell ATM calls on price run ups, ATM puts on dips, usually 2 weeks out. Don't really worry about assignment, kind of a loose wheel I guess you could call it. The individual tickers are not a part of the broader strategy as individual stocks move much more erratically for much harder to understand reasons.
The bulk of my gains are from indexes, I like to think I've taken multiple different strategies and combined the positive elements. Real simple strategy:
I hold SPY/SOXX/QQQ. I sell CCs between 1 week and 1 month out. For every one week out, I move the strike 2.5% away from the current price. That's all fine, classic stuff.
The actual gains come in here. There are 3 signals that I look for really. We're looking at the VIX daily chart with stochastic and RSI indicators, and we're looking at the actual ticker daily chart with RSI. Buy signals are: VIX stochastic spikes over 80 (fairly common) VIX RSI spikes over 70 (less common) or the actual index daily RSI under 30 (rare).
On any one of the signals we are closing the covered calls on indexes, selling a large portion of the index shares and deciding what kind of leverage we want. I will buy TQQQ/SOXL/UPRO shares or leaps depending on which signal hits, least aggressive on vix stoch, med aggressive on vix rsi, max aggressive on ticker rsi.
I usually go with about 30% of what my original position in the index was, there are instances where the dip keeps dipping and you want to have money available aside to take advantage of that.
There is no sell signal, the idea behind this strategy is that it is very highly likely to put you in a position where you are sitting on gains due to a reversal. Could be a temporary reversal. You have to choose to take them off the table, and at that point I go back to my default position holding the indexes and selling covered calls until the next opportunity. Most of the time I'm deleveraged within two or 3 days with a healthy profit.
This is an extremely unconventional approach and I can't in good faith recommend that you do it, but the math works for me. You have to have a stomach for drawdowns and there are (VERY RARE) occurrences where you could end up with a total loss on a long options position, but the gains should offset that.