Sep. 5 at 4:58 PM
$CRM $NOW $NFLX Stocks rarely break through major resistance on the first try, especially after a long rally. For investors already holding shares, this can create a tempting short-term play.
When a stock pushes into overhead resistance, implied volatility often climbs, driving up option premiums. Selling out-of-the-money (OTM) covered calls above key resistance lets you:
- Collect premium income while the stock battles overhead supply.
- Profit if the stock moves sideways or dips in the near term.
- Reduce risk in a price zone where a quick breakout is statistically less likely.
See my recent trades and the major resistances for Salesforce, Netflix and ServiceNow:
https://lextrading.substack.com/p/monetizing-resistance-selling-covered?r=2bgp9u&utm_campaign=post-expanded-share&utm_medium=web
