Selling covered calls. I am interested in selling covered calls for the Russell 2000.

[3Hotdogs]

It will cost about 250k for a share in the fund. I would sell the calls that expire every two days, two or three times per week.

The fund is not exceptionally volatile. Which is why I choose this. A 10 point gain on 100 shares would result in a gain of $1,000. I would sell calls that are 5 or 10 points out. If they are "called," I would buy to close so as to not pay a tax on the profit. I would make less money than if the option is not called.

If the fund declines in value, which it certainly will at some point, I will sell the next expiration date but at a lower strike price, with the intention of keeping the shares.

Thoughts?

[A HERETIC I AM]

1. You said a single share in the "fund" is $250K

What is the ticker of this fund?

$250,000 seems like a significant amount to tie up in one security unless your portfolio is large.

[3Hotdogs]

2. Symbol is RUT. Google Russe3ll 2000 option chain.

It is an accumulation of 2000 small cap stocks. Similar in style to the S & P 500.

[A HERETIC I AM]

3. OK, we were talking past each other.

I am well aware what the Russell 2000 is. It's an index. As you point out, like the S&P 500.

But you used the word "Fund" which indicated to me you were trading an exchange traded fund, not an option chain on the index itself. That’s why I asked what the ticker was.

Best of luck and may all your trades be net gains.

[3Hotdogs]

4. I used the term, fund, rather than index, in the hope of getting more people to respond.