anybody explore doing covered calls with TIP? This wouldn't be a big return opportunity but sure seems like you could enhance the yield by a nice amount.
That answers my question. Thank you.
That would be me. It is thin, though. The non-ATM options are hard to fill. So wait for your favorite topping signal to sell nearest strike. I have been netting 50-90 cents a month in addition to the divy.
so on average lets say you are doing .75. Is that net of costs on a round trip? Or is the cost on just one side at the position open and expiration is worthless so no cost? If you average .75 per month and can do that 6 times per year that is above a 4% yield enhancement no? Not too shabby. Have you been able to do this monthly? or do the expiration months not make that practical? thanks for your comments.
I was trying to write Dec 103's, but couldn't get a fill. Options vol is thin. If TIP gets to 101+ I'll give it another go.
I think you are going out to far. Try the front/back months. You may have to wait a bit for the price to come back up to where the 103 strikes are worth something. Check back on June 30th.