On Semiconductor and Roblox top the Bull Strangle watch list

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The Bull Strangle Newsletter specializes in covered call writing on carefully screened stocks. Subscribe to our FREE weekly Bull Strangle Newsletter for investment opportunities. Email BullStrangle@yahoo.com for a copy. The newsletter covers the strategy from this article and other strategies for different risk profiles.

Strategy Overview
This article explores an investment strategy using a covered call and a naked put. Variations may involve a simple covered call or a covered call with a put credit spread.


 

Variations to the Strategy Include:

  • Covered call with a put credit spread
  • Covered call only
  • Long stock only

Profit Diagrams for the Various Strategies

Market Overview

The market environment is a critical elements for the strategy. By back-testing 31 years of S&P 500 data, a model was developed that classifies the market as green, yellow, or red. Historically, the market is green 84% of the time, indicating favorable performance and acceptable volatility, allowing 75% of strategy capital deployment. Yellow weeks show increased volatility but still favorable performance, leading to 50% capital deployment. Red periods indicate unfavorable performance and extreme volatility, suggesting minimal or selective capital deployment. Yellow and red each account for about 8% of the weeks.

Watch List

Entry: Monday, May 12. Expiration: Friday, June 6. Only stocks with weekly options were considered for this cycle.

The free Bull Strangle Newsletter contains 20 additional watch list candidates.

Additional Detail On Watch List Favorites

Past Performance

Performance on closed trades through May 9, 2025, since inception in February 2024

More Information

For a free copy of the Weekly Newsletter, please send an email to BullStrangle@yahoo.com.

Darren Carlat

Managing Director

(214) 636-3133

Disclaimer

This information is for informational purposes only and should not be considered as investment advice. Past performance is not indicative of future results, and all investments carry inherent risk. Consult with a financial advisor before making any investment decisions.

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