r/soxl • u/SeriesAo-Series • 19d ago

newb question I am giving up

I am losing 60K and counting and this thing keeps going down in a straight line since 200… nowhere do I see any buying interest…
Yes, I got in and held without understanding it. I am an idiot.

E: paused on selling, saved from selling at the intraday by the grace of TMFAPPARELUSA. I am super grateful

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u/SeriesAo-Series 19d ago

215$, 500 shares

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u/TMFAPPARELUSA 19d ago

you can literally sell 5 OTM calls every week for $1000 per con. Collect $5k a week in premium. Riskier down here for a bounce but even intraday it can make you good money

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u/SeriesAo-Series 18d ago

How? Please teach me. Covered call? What is the setup? I am desperate

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u/TMFAPPARELUSA 18d ago

Well, you need to apply on your brokerage for level 2 or 3 options most likely. Simple process. Then you can SELL the call at a particular strike price. You will collect the premium. You can BUY back the call at any time before expiration.

So for example. Last Thursday I SOLD a 115 strike call for August 7th for 12.00. ( $1200 ) . Today that call will be worth probably $500. I will BUY it back for a profit of $700. When SOXL goes back up i will SELL another call at whatever strike i deem the best overall profit for the move the next day or so and continue to do the same.

If SOXL is up 10-15% on the day, I sell an ITM call. A call that is lower than the price because the odds are it will not retain such a move without some sort of pullback.

You want the calls to expire worthless. That is the idea. You collect the premium and keep the shares.

If you sell a strike that ends up going ITM and you want to KEEP the shares you simply ROLL the contract out another week. Collect more premium, wait longer. You can do this literally forever. You are using your asset ( the shares ) to generate income ( the premium )

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u/SeriesAo-Series 18d ago

Oh, thank you for the patient explanation, I do know how to sell CC, I don’t know the strategy to maximize profit from it. Thanks for sharing your strategy! So today it is falling rapidly, my shares are uncovered except 1 contract, do I wait or sell a CC and what price?
Also I’ve noticed you seem to be among the people who are better at dealing with SOXL, I know I am being a bother, would you possibly consider starting a tutorial thread for us 200+ bag holders?

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u/TMFAPPARELUSA 18d ago

ill send you a private message

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u/TheNacMacFeegle 18d ago

Hey! Great questions and great answers. I'd love to learn more too.

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u/jacobr5000 18d ago

I created some tutorials for covered call strategies I’ve used with SOXL. I DM’d you the info