Starting to Sell Short Dated Covered Calls

Last week, I started to sell short dated  (1 month expiration or less) way out of the money (OTM) covered calls on some of my stock positions in my Roth account.   

Here's my rationale:

• First, I willing to sell at the strike price if it hits.  For example, I sold the 30 strike price with 2 weeks expiration when SLS was around 10.  I received $30 premium.  If the price triples in 2 weeks, great, I'm happy to sell. 
• Second, I make some extra money, known as option premium, for selling the cover call.

This works because some stocks have high IV (implied volatility) which makes the premium very high.  Not all stocks have a high IV.   SLS is a small biotech currently in phase 3 clinical trials, which results expected before year end.

I also sold a a short dated covered call on NNBR with a 5 strike with 2 weeks expiration for $20  premium when the stock was around 4.

It appears both call will expire worthless on August 21, 2026 and I will keep the premiums as profit.

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This is not financial, investment, nor covered call selling advice. Please consult a professional advisor.

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