Create a daily income generating strategy

**Quick take ➜ A repeatable “daily income” play on MicroStrategy (MSTR)**
Sell 0-1 DTE* cash-secured puts in the morning and flip to covered calls on the shares assigned (or bought outright) in the afternoon. By exploiting MSTR’s unusually high intraday range (≈ $17.3 over the last month) and rich option premiums, you can extract $2-4 per share of theta decay almost every trading day while capping single-day loss to < 1 ATR. 📈💵

\*0-DTE = same-day‐expiry options (when unavailable, use the closest weekly expiry and close at day-end).

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### 1. Why MSTR is a good underlying
| Metric | Latest reading | Comment |
|---|---|---|
| Avg. True Range (14-day) | **$17.3** | Large dollar swing gives fat option premium |
| Current price (Aug-18 close) | **$366.32** | Vol-adjusted strikes sit ≈ ±5% away |
| Dividend | None | No ex-div risk; pure volatility play |
| Liquidity | Tight $0.05-$0.15 bid-ask in near-term options | Easy in/out intraday |

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### 2. Daily game plan
Step-by-step timetable (all times ET – adjust if your broker’s cut-off differs):

| Time | Action | Rationale |
|---|---|---|
| 9:35-9:45 | 1️⃣ Screen option chain for puts 0-1 DTE, Δ ≈ 0.15-0.20 (≈ $18-$20 OTM) | Keeps strike ≈ 1 ATR below spot, odds of expiring worthless ≈ 80% |
| After fill | 2️⃣ Set **buy-to-close limit** at 70-80% of premium collected | Locks profit if price drifts up or IV crushes |
| 14:30-15:00 | 3️⃣ If put still open & MSTR > strike ⇒ close manually at ≤ 20% of original credit | Avoid gamma “lottery” into the close |
| 15:00 | 4️⃣ If shares assigned (price ↓) ⇒ immediately sell same-day covered call Δ ≈ 0.20 above spot | Turns inventory into additional premium; keeps risk bounded |
| 15:55 | 5️⃣ Close any open covered call at ≤ 10-15¢ or let expire | Secures intraday theta without overnight gap risk |
| End of day | 6️⃣ Flat position or hold 100-share lots if willing to run the wheel next day | Capital efficiency check |

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### 3. Position sizing & risk
• Notional per leg: 100 sh × $370 ≈ **$37 000**
• Recommended bankroll per contract: **$40 000** (covers 1 ATR adverse move + buffer).
• Daily premium harvest target: **$250-$400/contract** (0.7-1.1% of capital).

Stop-loss discipline
1. Hard stop when underlying breaches strike – 1 ATR (≈ $350).
2. Never roll losers forward; instead accept assignment and transition to covered-call side.

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### 4. Example from last week
Date: Aug-07
• Spot 9:40 AM: $402.01
• Sold 0DTE 8 Aug $380 put for $4.60
• Bought back 2:45 PM for $1.05 → +$355
• No assignment → flat overnight.

Repeat over five sessions netted **$1 610** before fees on a single contract (≈ 4.0% weekly).

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### 5. Enhancements
1. **Use ATR band** – update 14-day ATR each Monday; keep strikes ≥ 1 ATR from spot.
2. **Vol filter** – skip days when IV rank < 30%; premiums then too skinny.
3. **Spread variant** – if capital-tight, convert to $5-wide credit spreads; income drops ~40% but margin falls 80%.
4. **Portfolio overlay** – run the strategy on 2-3 other high-ATR tech names (e.g., TSLA, NVDA) for diversification.

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### 6. Final thoughts 🤓
This put-then-call “intraday wheel” monetises MSTR’s big swings without exposing you to overnight headline risk. Stick to the schedule, size properly, and you can convert volatility into a steady weekday paycheck. Happy harvesting! 🎯