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premium income covered call strategy no directional thesis
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been runing cc's on a 17400 share BMNR position for the past few months. goal is $8k/month in premium to cover living expenses.
**why BMNR:** got in originally around $12-13 range, long term bullish on the company. high IV relative to the sector which makes it ideal for premium selling. i don't mind holding the shares if i get assigned, and at current price ($21.51) i'm sitting on solid unrealized gains so the covered calls are just gravy on top.
**strike seletion logic:** i target \~4-5% OTM on weeklies. So selling 4-5% OTM gives me enough cushion to not get called away on normal moves while still collecting decent premium. BMNR ripped 6.7% today and is up \~17% on the week which always makes you clench, but still comfortably OTM. **l always wait for the end of a big move to sell.**
**exit plan:** letting this one expire friday. if it expires worthless i collect the full $4k and immediately open round 2 — \~75 contracts at the $25 strike for may expiry, targeting another \~$4k to hit the $8k monthly goal.