Sl1der

JUST IN: S&P 500 reaches new all-time high of 7,200

The MSTR 10Δ Liquidation Contingency Plan This post serves two purposes: 1. To educate those eager to learn about covered call strategies. 2. To address concerns from skeptics who misunderstand the effectiveness of this approach. Many critics lack the experience to see solutions when a long position, like their MSTR stock, is called away. To them, this is catastrophic, as if their investment is lost forever. They often dismiss all covered call strategies as nearly identical, which is far from true. Without the requisite experience, this strategy may feel daunting. Critics tend to focus on the liquidation phase, struggling to see what comes next. In contrast, I view liquidation as an opportunity because I have a clear plan. Let’s explore a hypothetical scenario: Suppose $MSTR has experienced such a massive run-up that somehow my weekly rolling, targeting 40 DTEs, for a credit is no longer viable. For sake of discussion, we will skip past just how statistically improbable this actually is. How would I handle having my shares called away? Consider this: If this happens, that means my portfolio has recently experienced a massive run up; MSTR IV is spiking enormously like it did between Nov-Dec 2024. I would be very pleased with my recent wealth accumulation, and I would take my wife out on a very special date to celebrate. If my account converts to cash post-liquidation, new opportunities arise. After a brief pause over the weekend, I’d reenter the market the next trading day by executing a buy-write trade, simultaneously buying shares and selling covered calls in a single transaction. Unlike my usual approach, I’d sell higher-delta calls in this buy-write. Why? Parabolic price surges rarely persist. By selling a higher-delta call, I lower my cost basis from the outset. The probability of another month-long parabolic move would be even less likely than before, so I’d select a 40 DTE call at a delta that brings my new cost basis below the strike price at which I was previously assigned. Over the following weeks, I’d resume capturing theta decay (time value erosion) just as before. Historically, MSTR often stabilizes after such spikes, as seen from December 2024 to March 2025. Rapid price surges tend to cool off for all tickers, creating ideal conditions for this strategy. Understanding the bigger picture makes weekly adjustments straightforward. Don’t let skeptics deter you; experience and a solid plan make all the difference, and the math is on your side. Godspeed.

Would be very surprised if BTC does not hit $74-75k this coming week.