SPY preview Wk of 12/18/23, 4th wk expiry for December, 2023, Fri 12/22. Options pricing +/-$5.00 move, +/-1.10%, last fri close 469.33, possible range of 464.5 to 474.5 for this week. Option volume, open interest for puts, calls, indicate 465 to 476 range could hold. Dec Spy month open 455.77, so far holding green for the month. 384.37 was January open of 2023, so we are holding green for the year.
Fri buy XLU shares, for next Fri expiry sell CALL strike between 0.25-0.50 OTM. If XLU finishes BELOW the strike price of the option, You keep the option premium brought in from selling the covered call and you keep your shares. Right before the close, buy back your call options at next to nothing and then sell another covered call for the next Friday. If XLU finishes the week ABOVE your strike price, let your shares get called away. Then buy more shares and sell the next Friday’s option.