I sold a covered call on AMR 0.00%↑ at a $250 strike price expiring on October 16th 2026. I closed that position today and captured about $550 dollars when that contract was bought back.
In the screenshot above, you can see the initial option sold and I received approximately $1400 for the contract. I did this because there was clear resistance after a huge rally in both AMR 0.00%↑ and HCC 0.00%↑ names.
Looking at the MACD and RSI, there is a clear loss of momentum and downward move after this huge move up. Using my scripts, which indicate bull and bear targets, I was able to determine that AMR 0.00%↑ was at a good reversal point for this particular trade.
Since I wanted to keep the shares, I sold it out of the money at $250 strike, even though I could have made even more money from selling it at the money. After I closed it, I kept about $550 on the trade (I could have made a lot more but timing was off).
With that $550, I bought ~10 shares of GPIQ 0.00%↑ to get GPIQ 0.00%↑ to the same portfolio weight as SCHD 0.00%↑ and IAUI 0.00%↑.
Going forward, I will continue to use shorter term options for covered calls and longer term options for puts to increase money for longer term growth and income investments.