The headline promises quick income from an auto stock. Refuses to name the auto stock. This is like a drug dealer saying he's got the good stuff but won't show you the bag until you Venmo him first.
Broader macro uncertainties. That's every day since the Federal Reserve was founded. Pocketed volatility. As opposed to what, systemless volatility? Volatility that roams free across the plains? The sector has uncertainty. The sector always has uncertainty. Ford could announce they're pivoting to makingничего but electric Pintos and someone would still write "patient options traders have an exceptional set-up."
Patient options traders. Know what patient options traders are called? Broke. The patient ones already sold covered calls on their shares for forty-seven cents and now they're watching the stock rip 30% while they're capped at a 2% gain. They harvested premiums alright. Harvested them right into a tax-loss opportunity for next April.
High-quality premiums. That's not a thing. Premiums are numbers. They don't have quality scores. Nobody at the CBOE is grading premium purity like it's Peruvian cocaine. You either collect the premium or you don't. And if you're collecting it on an auto stock during pocketed volatility, you're just selling insurance on a sector where the manufacturers can't figure out if they're making cars or subscription services.
The article won't name the stock because naming it would require commitment. Commitment means someone could check back in three weeks and notice the "stride" was actually the company sprinting directly into a concrete wall. Better to keep it vague. Let the reader imagine it's whatever auto stock they're already bagholding.
Quick income. The only thing quick about selling options is how fast your shares get called away the moment you finally pick a winner.
Photo by Markus Winkler on Unsplash
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