Originally Posted by
LandGreen2
im doing the same thing! Trying to start trading in a self directed IRA. Question for the pros:
If simply holding stocks for long term (such as Motley Fool stock Advisor picks), do you still do covered calls on your long stocks, or cash secured puts if trying to get buy a dip in price? If so, 30-45 days out? When picking the strike do you try to maximize the premium (one strike OTM) or put the strike far enough OTM to make likelihood of excercising less likely, but still collecting a little premium?. Sorry if this makes no sense I’m still learning here...!
Tastyworks is pretty simple, which is why I went with them. Lightening fast data, nearly 100% uptime and $1 to open $0 to close (+a few cents for regulator fees). No confusing data fees etc (interactive brokers does it this way too) l.
As for writing covered calls, I NEVER write calls against shares I want to hold long term, eventually they may get called away and I don’t want to trade a few hundred bucks in premium for 10000% gains in the long run.
The nice thing about tastyworks, is that when you select a strike, they give you a POP and P50, that is probability of profit (making at least one penny) and probability of making 50% profit. This strike is usually called a “30 delta”, but don’t let that confuse you; what you want to do is pick a strike that shows up with a 70% POP. This is the tastytrade way, small trades often aiming for 70% POP.