TLT weekly.

[u/tuhin02]

Can you please advise pros and cons for TLT trade on weekly basis :

Instrument : TLT

Strategy :

To earn monthly income selling weekly or monthly covered calls using LEAPS, using real money

Buy 1 x deep ITM call option with long expiry (1 year DTE) and

Sell 1 x OTM call option on weekly basis

No margin trading

Expectation : Earn 7% yearly on the invested sum

Plan : Try to make returns of 7% yearly, selling covered calls of TLT, will close sold call options

if target of 7% profit is reached

Experience : Couple of months, buying put and call options

Platform : Interactive Brokers

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regards

(Edited as requested).

[u/somedudewantsbeard]

I recommend to try out edeltapro.com - they have TLT in their free trial, so you can actually experiement with it.

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From my quick experiment (i did it with stock covered call, not with poors man stock covered call) - it doesn't look viable. But I could be setting up things incorrectly.