Welcome! I’m so glad you found your way here!
UPDATE:
After having all the data on this website “scraped” and reposted, and at the behest of friends/readers, I decided to add a ton of content and turn it into a very nice book!
I’ll be publishing each chapter for free as a page on the website as I approach FIRE, in proportion to how close I am to hitting 25x (For example, when I am halfway there, half the book chapters will be posted here for free). Idea being, I won’t need to sell books anymore once I FIRE, so bots can steal the whole thing again and I won’t be too stressed about it.
If you like what you are reading and don’t want to wait until I FIRE to get the whole thing, it’s Earn Income with Your Index Investments: A Complete Guide to Portfolio Overwriting for Passive and FIRE Investing, available on Amazon. As the owner of more than 40 books on investing and options, and having read more than twice as many, I can confidently say that imho it’s cheaper, more realistic, more in-depth, and more complete than any book I’ve seen on covered calls.1
What follows is the original website frontpage:
Purpose
This site is about how to trade options, specifically covered calls. Geared towards the FIRE (Financial Independence/Retire Early) community, most examples focus on how to do a specific type of covered call selling, “portfolio overwriting” using whole market index funds.
That said, anyone looking to learn how to trade options can learn from this site. Just apply everything to a stock of your choice instead of an index fund.
Style
This series is designed for readers looking for a practical guide to learn at their leisure. Most of the articles are short, and the writing is colloquial with the intention of making an intimidating subject as accessible as possible. There are already enough stodgy and inaccessible finance textbooks, and not enough conversational educational resources teaching normal humans how to sell covered calls.
Fans of the Mr. Money Mustache blogs, Early Retirement Extreme, and The Simple Path to Wealth may notice me trying to emulate their elements of style , and the homage is intentional.2
How to Use this Site
The Main Portfolio Overwriting for FIRE Series page presents the main series in order. I recommend you read the series in that order the first time through. After that you should understand how to sell covered calls, and you can move on to the supplementary articles.
The supplementary articles will only make sense to the reader already familiar with covered call selling, and they address more niche topics or offer lessons from my experiences. They may not apply to you or your trading, but I hope you find something of value there.
As they say, “your mileage may vary.”
Be Aware
Trading calls is not a foolproof way to make money- no investing technique is. Aside from upside risk and dumb ways I’ve lost money with options, both of which I write about extensively starting with the real estate analogy in Chapter 4, there are other ways to lose money selling covered calls .
That said, selling covered calls is a simple, income-generating skill that I believe all investors should be familiar with, active trader or otherwise.
What Next?
If you find the site useful, or have suggestions please drop me a line. My email is in the contact section.
Enjoy!