To The Moon

Selling an Out-of-the-Money Weekly Call on VST for Steady Income

I sold one lot of VST 175.0 CALL expiring on 2025-03-28 for $0.07 per share while my cost basis is $145. This may seem like a small premium, but when you break it down, it’s a smart, low-risk income strategy that earns me a steady 0.035% return weekly—enough to cover a good meal every week. Here’s why this trade makes sense:

1. Generating Passive Income with Covered Calls 💰

Since I own VST shares at $145, selling a weekly out-of-the-money (OTM) call at $175 allows me to collect premium without giving up my shares unless the price surges. A $0.07 premium may seem small, but over time, it adds up.

• 0.035% per week → 1.4% per year (without compounding)

• If I repeat this trade consistently, I get a small but steady cash flow while holding the stock.

2. Selling Far OTM Limits Assignment Risk 📊

VST needs to rise from $145 to $175 (+20.7%) within a week for this call to be exercised. The probability of that happening is low, meaning I can safely collect premium without worrying about losing my shares.

3. Covers Small Expenses Without Selling Stocks 🍔

The $7 premium may not seem like much, but over time, these small earnings cover expenses like meals, coffee, or even reinvestments. It’s like having VST pay for my weekly treats without touching my capital.

4. Maximizing Capital Efficiency Without Additional Risk ⚖️

Instead of letting my VST shares sit idle, I’m putting them to work by selling covered calls. Since I already own the shares, there’s no margin requirement or extra risk involved.

Final Thoughts: Small Gains Add Up

By selling a weekly OTM call at $175 for $0.07, I’m earning a consistent income stream while keeping my VST shares. Even if I do this trade only 30 times a year, that’s $210 in extra income—which adds up over time!

It’s a low-risk, easy-to-repeat strategy that turns my stocks into an income-generating machine—and best of all, it pays for my meals! 🍔💸@TigerEvents @TigerStars @Daily_Discussion @MillionaireTiger @CaptainTiger @TigerStars @TigerTradingNotes