Covered Calls Investment Strategy

Throughout my investing journey I have allocated about 1/5th of my portfolio towards short-term, higher risk/reward. My strategy is to find lower cost stocks that fit my budget, and then buy at least 100 shares of them. Once I have 100 shares, I can sell covered calls against that position. When I do this, not only do I profit from the stock rising in price, but also from the "premiums" I get from selling these contracts. The good thing aboutt this approach is that it creates two possible outcomes, and both are good. If the stock stays below the strike price of the call I sold, I keep my shares and keep the premium or the price the buyer paid as profit. If the stock goes above the strike, I sell my shares at a higher price than I bought them, plus I still keep the premium. Either way, I’m making money off an investment that might otherwise just be sitting there. The biggest downside is that if the stock skyrockets, I have to sell at the strike price that me and the buyer agreed at, which means I miss out on some upside. But since I choose stocks I wouldn’t mind selling anyway, this risk feels is OK. The premiums also offer a bit of insurance if the stock loses value and I end up losing some money. This strategy isn't like playing the lottery, but it's consistent safe growth and something that even you can do if you some money that you want to use to start a portfolio. Here are some of the ticker symbols of stocks I have used this strategy in: AQST SGS LCID NIO

VNET IQ JBLU Even though I have had losses at times with these stocks, it hasn't been because of my covered call strategy, but the price of stock losing value. Here is a link to a beginner's tutorial on how to trade covered calls on Robinhoods platform. It is simple to wrap your head around and you should take advantage to of it to improve your gains! https://www.youtube.com/watch?v=U2N4pTpRMy4