Long Shares + Covered Calls + PMCC
Your long shares serves as both income and capital gains generators. Your selling covered calls at strikes higher than your CB. LEAPS also serve the same purpose, equity exposure that you’re also selling covered calls against.
The difference with my strategy vs what I see on here - you ladder your DTE on the calls you write. You only have 1 or 2 options expiring any given Friday. Go out 30-45 DTE, 20-30 delta, and if you get assigned (which I do every now and again), you give up a block of your long shares. Immediately sell ATM puts the following week to get back in and maintain the long shares positions in case you get assigned again. I’ve only got assigned a few times, prefer not to, I’ll roll out typically. Sometimes, it makes more sense mathematically to get assigned, however. This ladder prevent you from ever capping your capital gains with your LEAPS and having to sell those.
Your maximizing income by selling CC on your shares plus your LEAPS. The shares get some growth, and the LEAPS never get capped off bc you’re only using your shares for assignment.
I realize this doesn’t work in a bear market, however I use stocks I believe will rebound when there is a drawdown. Thoughts?