To The Moon

That’s where the covered call comes in.

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The Covered Call Decision: Selling the $94 Call 🧠

I sold 1 IAU call option with the following details:

• Strike price: $94

• Premium received: ~$2.00

• Time to expiry: ~4 days

• Position: Covered (I own the shares)

This immediately achieved three objectives.

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Objective 1: Locking in Income Immediately 💵

By selling the call, I received $200 upfront (since options are for 100 shares).

That money is realized profit the moment the trade is filled.

No matter what happens next:

• If IAU drops → I keep the premium

• If IAU goes sideways → I keep the premium

• If IAU rises above $94 → I still keep the premium

This instantly transformed paper profit into cash.

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Objective 2: Defining a Profitable Exit 🎯

Selling the $94 call means I agree to sell my shares at $94 if assigned.

Given my true cost basis of ~$91.50, this is a very good outcome:

• Capital gain from $91.50 → $94 = $2.50 per share

• Plus option premium received = $2.00 per share

• Total potential gain = $4.50 per share

That’s $450 on 100 shares, in a short time, on gold — without leverage.

If IAU gets called away, I’m not losing. I’m exiting at a profit I pre-approved.

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Objective 3: Reducing Emotional Decision-Making 🧘‍♂️

One underrated benefit of covered calls is mental clarity.

Once the call is sold:

• There is no panic on small pullbacks

• No FOMO on every uptick

• No need to “decide” every hour

The trade becomes rules-based instead of emotional.

Either:

• The option expires worthless → win

• Or shares get called away → win

This removes stress, which is crucial for consistency.

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Why I Chose the $94 Strike Specifically 🔍

This wasn’t random.

The $94 strike was:

• Slightly below the current market price

• Close enough to generate high premium

• At a level I was happy to sell

Many traders only sell out-of-the-money calls. I deliberately chose a near-the-money call because:

• I wanted maximum premium

• I was okay being assigned

• My cost basis gave me room

This is an important mindset shift:

Don’t sell calls based on hope — sell them based on your real cost.

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Time Decay: Letting Theta Work for Me ⏳

With only 4 days to expiry, the option’s value decays fast.

Every day that passes:

• Time value drops

• Buyer loses edge

• Seller gains edge

Even if IAU stays flat, the option price naturally declines. That’s the power of short-dated covered calls.

Instead of predicting direction, I was selling time itself.

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What If Gold Suddenly Rallies? 🚀

This is the common fear.

“Yes, but what if gold explodes higher?”

Two answers:

1. I still profit

• I sell at $94

• I keep the $2 premium

• I exit with a strong gain

2. No regret trade

• Covered calls are about planned exits

• Missing upside is not the same as losing money

Trading is about consistency, not catching every last dollar.

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What If Gold Pulls Back? 📉

This scenario is actually even better.

If IAU falls below $94 and stays there:

• The option expires worthless

• I keep my shares

• I keep the $200 premium

That premium effectively lowers my cost basis further, possibly below $91.

From there, I can:

• Sell another covered call

• Or exit shares later

• Or trade around the position again

Income first, decisions later.

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Covered Calls as Profit Protection, Not Just Income 🛡️

Many people think covered calls are just for yield.

In reality, they are also:

• A hedge against pullbacks

• A way to monetize consolidation

• A tool to enforce discipline

In this trade, the covered call acted as a profit-protection mechanism, not speculation.

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Lessons From This Trade 📚

1. Know Your True Cost Basis

Active trading matters. Your real cost is not always what the platform shows.

2. Covered Calls Are Strategic, Not Passive

Strike selection reflects intent — income vs exit vs protection.

3. Premium Is Realized Profit

Cash today is more valuable than hope tomorrow.

4. Gold Is Perfect for Options Income

Range-bound behavior + macro uncertainty = great option selling environment.

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Final Thoughts: Trading Like a Business 🧠💼

This IAU trade wasn’t about predicting gold prices.

It was about:

• Managing risk

• Protecting gains

• Getting paid for patience

By selling a $94 covered call for $2, I transformed a floating $200 profit into structured, repeatable income, while defining a profitable exit based on my lower true cost of ~$91.5.

That’s not gambling.

That’s process-driven trading.

And over time, that’s what compounds

@Tiger_Contra @Esther_Ryan @MillionaireTiger @Daily_Discussion @TigerEvents @TigerStars @sia @Shernice軒嬣 2000 @Pilates @LawrenceSG $Gold Trust Ishares(IAU)$