Selling Weekly Covered Calls for Income: 8 Critical Considerations | Covered Calls & Short Puts

Trading Covered Calls & Short Puts | Cameron May | 12-29-25
Characteristics and Risks of Standardized Options. https://bit.ly/2v9tH6D

In this video, we take a detailed look at selling weekly covered calls for income, focusing on eight critical considerations traders should understand before using shorter-term options. We’ll walk through four potential advantages and four potential disadvantages of weekly covered calls compared to longer-dated options, including factors such as time decay, flexibility, assignment risk, "whipsaw" exposure, and management demands. The goal is not to promote or discourage the strategy, but to clearly explain the trade-offs involved so traders can better evaluate whether weekly options fit their objectives and risk tolerance.

Throughout the discussion, we’ll use real-time examples on the paperMoney platform within the thinkorswim Desktop trading software to illustrate how these considerations show up in actual option chains and market scenarios. We’ll conclude the session by planning and placing a sample weekly covered call trade on paperMoney, walking through strike selection, premium considerations, and risk management concepts. This video is intended for educational purposes only and is designed to help traders think more critically about using weekly covered calls as part of an income-focused options approach.

Looking for income, ideas beyond dividend and interest? Your education coach will discuss how and when stock investors might employ covered calls in their income strategies. Expect a balanced education on the returns and risks of this popular strategy, and on the tools that can potentially help you implement it.
0823-3902

Options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

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