To The Moon

Selling Out-of-the-Money Covered Calls on VST to Pay My Internet Bill 💰📡

$VST 20250321 155.0 CALL$ 

Selling covered calls is one of my favorite strategies for generating consistent passive income while keeping my long-term holdings intact. Right now, Vistra Corp (VST) is trading at $128, and I’ve sold a covered call with a $155 strike price, which is significantly out-of-the-money (OTM). This allows me to earn premium income every 10 days while keeping my shares safe from assignment.

Why Choose the $155 Strike Price? 🎯📊

Picking a strike price that is far above the current market price is key to this strategy. The $155 strike is over $27 above the current price, making it highly unlikely to be exercised. This is reflected in the low delta, meaning the probability of VST reaching $155 before expiration is extremely low. This way, I can collect premiums repeatedly without the risk of losing my shares.

Earning Passive Income Without Selling Shares 💵🔄

For every 100 shares, I sell a call contract for $0.15 per share, or $15 per contract. Since I roll these calls every 10 days, I generate about $45 per month—enough to pay my internet bill without dipping into my main income. The best part? The stock doesn’t have to move much for me to keep making money! If VST stays under $155, I keep the shares and repeat the process.

Why Low-Delta Covered Calls Work in My Favor 📈🛡️

A low-delta call option means there’s a small probability of the contract being exercised, which is exactly what I want. Delta measures how much an option’s price moves relative to the stock price, but it also represents the probability of finishing in the money (ITM). A delta near 0.10–0.15 means there’s only a 10–15% chance of my VST shares being called away. This gives me confidence that I can continue collecting premiums without worrying about losing my shares.

$VST 20250321 155.0 CALL$ 

Final Thoughts: Let the Market Pay for My Bills! 🚀💰

Instead of paying my internet bill out of pocket, I use my stock holdings to generate cash flow effortlessly. Selling covered calls on low-delta OTM options ensures I maximize income while minimizing risk. Over time, this strategy can fund multiple expenses, turning my portfolio into a self-sustaining income machine. I’ll keep rolling these covered calls every 10 days, stacking premiums, and letting the market work for me!

@MillionaireTiger @manlin_sun @CaptainTiger @TigerStars @TigerTradingNotes @CaptainTiger @Daily_Discussion