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Ford Week 4 - Position Review - Selling Call Option for 2.7% Over 40 Days

Kevin Hamilton

Episode 4 of Operating the Wheel Strategy

Today we sell a third call option on 400 shares of Ford. Last week we sold a second call option. We can sell one more call option next week and then we should have a call option expiring. We'll then try to start selling one call per week.

The max position size we want to maintain in Ford is roughly 400-500 shares. We could also sell another put option if we wanted to do that.

Ford held up really nicely after earnings. No shares will be called away, so we continue looking at the same sideways channel as last time.

We can pop over to the options screener on Tiblio to find a covered call for Ford. On the screener, you’ll sell the option indicated by the symbol, expiration, and strike.

You can benefit from selling covered calls to drive down your cost basis and produce income for your portfolio. That income can be reinvested to purchase more shares, and ultimately sell more call options.

As always, Tiblio members get access to our Discord server. If you're trialing or already a full member. Come join the Discord server and chat me up.