The Options Millionaire Episode 71 - Covered Calls
Feb 10, 2026
Clear breakdown of covered calls and how they differ from naked calls. A live platform demo contrasts paper/on-demand accounts with real-money trading. Practical strike-choice comparisons: ATM, ITM, OTM and the tradeoffs of income versus upside. Warnings about influencer demos, myths like cost-basis tricks, and realistic return expectations over time.
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Episode notes
Peter Shows Real Money Trades Not On Demand
- Peter shares he shows real-money trades to students and rarely uses paper/on-demand when teaching.
- He demonstrates Thinkorswim on-demand and criticizes influencers who display only on-demand results instead of real account trades.
Always Cover Calls With Owned Shares
- Do only sell covered calls on shares you actually own to avoid naked-call risk.
- Peter demonstrates selling at-the-money calls (strike just above purchase price) to guarantee non-loss and consistent premium.
Prefer At The Money For Predictable Income
- Do prefer at-the-money covered calls (sell strike just above your purchase price) for steady, guaranteed income.
- Peter typically sells 7-day at-the-money calls and averages about $3–$4 premium per contract weekly.