My favorite options structure is a collar, selling aggressive ATM weekly calls to generate income. This usually equates to about 3%. If my strike becomes breached, I'll roll out a month to the following strike, converting the capital appreciation into premium.
Where collars fail is should the price surge. This is why the premium collected goes straight into max date LEAPS. By running a collar in IRA, can generate a substantial income selling covered calls, I hedge about 30% of the shares using puts.
Take LAC for example,
Currently I have 3700 shares which is worth right now $21.6k
This has been netting me around $550 worth of premium per week.
On average, buying max date LEAPS at .75 delta it buys me two LEAPS per week.
I was selling the $5.50 weekly strike, after the recent breach I rolled out a month, selling the $6 strike. I will make around 10% return this month with breakeven $6.49.
The entire goal is to take a position on an underlying want to own, then sell aggressively to collect premium while increasing exposure through LEAPS, which is the solution to collars biggest problems, getting gapped to the upside. If LAC reaches $6.50 in a month, take assignment, start selling weeklies again, buy more LEAPS. This is how compound growth, getting paid by the market during flat price action. It's convexity and compounding.