Say I bought 100 shares of QQQ @ 50 back in the day. That cost me $5,000. Today QQQ, closed at $56.85, for a total value of $5,685. Let's say I'm done with my QQQ position. I could sell it and make $685 minus commissions. I'm wondering if I could make more money selling it with covered calls? I'm assuming OTM covered calls are out because that would require QQQ going up to the strike price in order to close my position, and that may not happen (eg. QQQ could begin a downtrend tomorrow). I could sell an ATM option (assuming QQQ was at an even dollar amount) and probably make the premium + the gain on QQQ right? What about an ITM option? Right now I see that June $54 QQQ options are going for $3.63 (bid). So I could sell one of those and bring in $363, but I assume my position would immediately be exercised at $54, right? So does that mean my total profit would be: ($5,000) - buying the shares at $50 $363 - selling the option $5,400 - selling my shares to the option buyer at $54 ------------------ $763 (minus commission) Is that math right? So does that mean that if you're looking to unload shares of stock, it is (sometimes?) better to sell an ITM covered call to close out the position rather than to just sell your stock regularly? What about a September 54 call? They are $4.66. I'd make like $103 more that way, wouldn't I? And December 54 calls are $5.48. I guess the question becomes "what are the chances of an ITM option being exercised by your buyer?" What about selling a Dec 42 covered call for $14.25 (bid)? ($5,000) - original purchase $1,425 - option premium $4,200 - selling my shares to the option buyer ----------------------------------- $625 Oh wait, that's worse than just selling the shares outright. lol. Do I have the math right here? Is this pretty much how you do it? - Have a stock you want to sell that has already gone up in value - Find an option where selling ITM calls will make you more money than just selling the stock normally - Enjoy free money? Or am I missing something?