To The Moon

When I first started building my SPYG position, I wasn’t trying to swing for home-run profits or gamble on big market moves. I simply wanted a method where I could generate steady, repeatable income while holding an ETF that mirrors the S&P 500’s growth segment. That was when I decided to adopt a disciplined covered-call strategy—something stable, repeatable, and with a safety buffer that lets me sleep well at night. And this month, that strategy showed again why it works so beautifully for me.

I bought my SPYG shares at $103.16, and almost immediately I sold a covered call at the 102 strike, collecting a $5.08 premium. That premium alone lowered my actual cost from $103.16 to $98.08, giving me a built-in downside buffer of around 4%. With that premium, my maximum potential short-term return is 3.92, and when I divide 3.92 by my adjusted cost of 98.08, I get nearly 3.997%—effectively 4% every two months, or close to 20–24% annualised if I compound the strategy consistently.

This is how I break down my thinking, my risks, and my goals.

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How I Sell Covered Calls on SPYG and Why This Strategy Makes Sense for Me 🎯

When I sell a covered call, I am essentially renting out my shares for premium income. The buyer of the call option pays me upfront, and in exchange, I agree to sell my SPYG at the strike price if SPYG trades above that level at expiration. Because I already own the shares, my risk is limited in the sense that I will not lose my shares without receiving the strike price for them. And because SPYG is a diversified, steady-growing ETF—not a volatile single stock—I find that the premiums I receive relative to the risk are more than reasonable.

The most important part about this strategy is that it lets me generate cash flow even if SPYG goes sideways or even slightly down. It is a yield-enhancing technique on an ETF I already want to hold for the long term. And unlike day trading or options speculation, selling covered calls is something I can plan calmly and execute with discipline.

⸻$SPYG 20251219 102.0 CALL$ 

Why My Break-Even Level of $98.08 Matters 🛡️

The premium I collected—$5.08—is not small at all. It effectively gave me a cushion down to $98.08 before I start taking real losses. That’s the beauty of selling calls: I get paid upfront for agreeing to cap my upside, and that payment reduces my risk if SPYG drops.

If SPYG falls below $98.08, I start to take unrealised losses. But even then, the losses are softened because the premium acted as a shield. Instead of worrying about short-term volatility, I view every premium collected as an income stream that continues reducing my overall cost basis over time.

If SPYG drops to $100, $99, or even $98, I am still in a better position than someone who simply bought the ETF and held it without generating any yield. My approach rewards patience and reinforces discipline.

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What Happens if SPYG Rises Above 102? 📈

If SPYG closes above $102 by expiration, my shares will almost certainly be called away. In that case, I will realise the full profit:

• I bought at $103.16

• My adjusted cost is $98.08

• I get sold at $102

• Plus I keep the full premium already collected

This creates a smooth, predictable gain.

The only sacrifice I make is giving up possible additional upside beyond $102. But that is the price I willingly pay for locking in stable returns and reducing volatility in my portfolio. I am not here to chase unpredictable upside; I am here to collect money consistently.

And in today’s volatile market, consistency beats excitement.

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What Happens If SPYG Stays Below 102? My Profit Is Smaller but Still a Profit ✔️

If SPYG stays below 102 at expiration, the call I sold will expire worthless. That means:

• I keep the shares

• I keep the premium

• I lower my cost basis even further

• I prepare to sell another covered call the following month

It’s a cycle that continues generating income regardless of whether SPYG moves higher or simply trades sideways.

Even if SPYG is at 101 or 100 by the time the call expires, I still keep the entire $5.08 premium. And that premium represents the bulk of my return. That’s why this strategy fits so well with my approach—I don’t need SPYG to rally for me to earn money. I just need time to pass.

Time decay becomes my friend, especially when the theta decay on these contracts ranges from $0.40 to $1 per day near expiration. As long as the price doesn’t explode upward too fast or crash too deeply, the decay works in my favour.

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Why I Accept the Risk of SPYG Falling Below 98.08 📉

No strategy is perfect, including covered calls. I fully accept the risk that SPYG could fall sharply below $98.08. If that happens, the premium won’t fully protect me from losses. But I view this risk differently because I am holding SPYG for long-term growth as well.

If SPYG drops, I don’t panic—I simply write another call at a lower strike price and collect another premium. Over time, repeated cycles of call premiums can eventually lower my average cost substantially. I treat the strategy as an income-producing machine where downturns are temporary and premium income is ongoing.

As long as I keep my margin usage controlled and my exposure reasonable, the strategy remains sustainable.

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How This Strategy Helps Me Earn 3% Every Two Months 🔁💸

My premium of $5.08 against my adjusted cost of $98.08 is a return of almost 4%. And because my call expires in roughly two months, I treat that 4% as my targeted two-month yield.

If I can repeat this cycle six times in a year, even at slightly lower premiums, I can realistically aim for:

• 18–24% annualised returns,

• while still holding a blue-chip ETF,

• with a built-in buffer,

• and steady dividends on top.

To me, this is one of the smartest and safest income strategies available for ETFs.

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The Dividend Boost Coming in December 📅💵

Another benefit of holding SPYG while running covered calls is the dividend income. SPYG pays quarterly dividends, and December is the next one. So even though I am writing calls and lowering my upside, I still collect my dividend if the shares remain uncalled by the ex-dividend date.

This adds yet another layer of income to my strategy. Each dividend I collect lowers my cost basis further and increases the overall return beyond just option premiums.

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Why I Love This “Average-Risk, High-Consistency” Approach 💼✨

I am not trying to beat the market with aggressive bets. Instead, I am building a controlled, predictable, repeatable system where:

• I own high-quality assets

• I earn consistent premiums

• I minimise downside

• I cap upside in exchange for stability

• I collect dividends

• I turn every two-month cycle into income

This is how I aim to grow steadily, safely, and confidently. Not every month will be perfect. Some premiums will be smaller. Some cycles will see unrealised losses. But the overall long-term trajectory remains the same: consistent income generation with disciplined risk.

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@MillionaireTiger @TigerStars @Wrtd @TigerClub @TigerEvents @CaptainTiger