Life gets busy. Projects demand your attention. Responsibilities pile up. But that doesn't mean your shares have to sit idle generating zero income.
If you've been running weekly covered calls and cash-secured puts but find yourself with limited time to monitor positions, monthly options offer a practical alternative. You'll collect less premium per week compared to rolling weeklies, but you gain something valuable: time and flexibility.
This article breaks down a real-world example of transitioning from weekly to monthly option selling on Marvell Technology (MRVL), demonstrating how to structure 45-day positions when you can't actively manage weekly expirations.
When returning to your portfolio after weeks away, the first step is understanding where you stand. Let's walk through the MRVL position assessment process.
The last recorded trade was a $43 cash-secured put sold on April 3rd for $97 premium. This position got assigned on April 7th, resulting in the purchase of 100 shares at $43 per share ($4,300 total).
When tracking this in MyATMM, you would:
The covered call position from the previous cycle expired worthless on April 14th. This is a winning scenario—you kept the premium and retained the shares. Mark this position as expired worthless and remove it from your active positions.
Understanding your true cost basis is essential for selecting appropriate strike prices:
The cost basis with premium shows you're actually profitable at current prices ($39.48) when accounting for premium collection. This is the power of consistent premium income—you can be "winning" even when the stock is down.
When time is limited, extending your option expirations reduces the frequency of position management while maintaining income generation from your shares.
For monthly covered calls with limited monitoring time, target at least $100 premium per contract. This provides meaningful income while justifying the extended time commitment to a single position.
With 500 shares of MRVL, the goal is to sell 5 covered call contracts at or above $100 each, generating approximately $500 in total premium.
When choosing monthly expirations:
In this example, with the current date being early May, the target expiration is June 16th—47 days away.
With a cost basis of $44.40 and the stock trading at $39.48, your covered call strike selection needs to balance income generation with acceptable exit prices.
Let's compare premium availability across different timeframes for a $45 strike:
| Expiration | Days Out | Bid Premium | Premium per Day |
|---|---|---|---|
| This Friday | 5 days | $0.03 ($3) | $0.60/day |
| Next Week | 12 days | $0.09 ($9) | $0.75/day |
| 3 Weeks Out | 26 days | $0.25 ($25) | $0.96/day |
| 1 Month Out | 40 days | $0.70 ($70) | $1.75/day |
| 47 Days (Target) | 47 days | $0.90 ($90) | $1.91/day |
| 2 Months Out | 110 days | $1.60 ($160) | $1.45/day |
Notice that the 47-day expiration offers strong premium-per-day efficiency ($1.91/day) compared to longer timeframes. Going beyond 60 days actually reduces daily premium collection while locking up capital for extended periods.
When placing the order in thinkorswim or your preferred platform:
The actual order filled at $0.95 per share (better than the $0.92 target), generating $475 total premium for the 5 contracts. This demonstrates the value of placing limit orders at reasonable prices rather than market orders.
One of the advantages of the continuous wheel strategy is the ability to sell both covered calls and cash-secured puts simultaneously. Since the stock can only move in one direction, at least one position is guaranteed to profit.
With the stock trading at $39.48, you want to sell a cash-secured put at-the-money or slightly below. However, when searching for the $39 strike at the June 16th expiration, you'll notice some strikes aren't available 47 days out.
Reason: Far-dated options typically offer strikes in $5 increments ($35, $40, $45, etc.). More granular strikes ($39, $38.50, $41, etc.) become available as expiration approaches.
To find available strikes at the 47-day expiration:
The $37.50 strike is available at the June 16th expiration:
| Strike | Days Out | Premium | Distance from Current |
|---|---|---|---|
| $39 (ATM) | 40 days | $2.22 ($222) | $0.48 below current |
| $37.50 (Target) | 47 days | $1.86 ($186) | $1.98 below current |
While the $39 strike offers $36 more premium ($222 vs $186), it comes with higher assignment risk and a 7-day shorter expiration. The $37.50 strike aligns with the covered call expiration (June 16th) and reduces assignment probability.
The original order at $1.88 didn't fill immediately on Friday morning. After monitoring for about an hour, the order was adjusted to $1.73 to get filled, ultimately collecting $173 premium for the cash-secured put.
This adjustment demonstrates the reality of trading: bid/ask spreads fluctuate, and you may need to adjust limit orders to secure fills, especially on lower-volume strikes.
After executing both the covered calls and cash-secured put, proper tracking ensures you maintain an accurate view of your position and cost basis.
In MyATMM's Cost Basis screen:
Notice how the total premium collected now exceeds the unrealized loss, putting the position in net positive territory despite the stock trading below the cost basis.
Your platform should now show:
Understanding the ROI implications of switching from weekly to monthly options helps set realistic expectations for income generation.
Looking at premium collected month-by-month reveals income patterns:
| Month | Premium Collected | Strategy |
|---|---|---|
| December 2022 | $1,351 | Weekly options |
| January 2023 | $494 | Weekly options |
| February 2023 | $1,379 | Weekly options |
| March 2023 | $737 | Weekly options |
| April 2023 | $0 | No activity (time constraints) |
| May 2023 | $648 | Monthly options (single trade day) |
Key observation: The May premium of $648 was collected in a single day with a single set of trades, whereas previous monthly totals required 4+ trade cycles with weekly monitoring.
Current annualized ROI projections based on year-to-date performance:
Breaking down weekly vs monthly premium collection:
The monthly approach generates approximately 30-45% less weekly premium but requires 90% less time and monitoring. For traders with limited availability, this trade-off preserves income generation from shares that would otherwise sit idle.
Even though monthly options require less frequent attention than weeklies, you should still monitor key metrics periodically.
Extrinsic value (time value) is the portion of an option's price beyond intrinsic value. As expiration approaches, extrinsic value decays.
Key Monitoring Points:
With 47 days until expiration, you have three potential outcomes:
With 47 days of runway, you don't need to check these positions daily. A reasonable monitoring schedule:
This schedule frees up significant time compared to weekly options, which require attention every 3-5 days.
Monthly options collect less premium per week than weeklies, but they dramatically reduce management time. If you're juggling multiple responsibilities, the reduced weekly premium is often worth the time savings.
The 45-47 day timeframe provides:
Selling both covered calls and cash-secured puts with the same expiration date (June 16th in this example) creates a single management date. You'll evaluate both positions simultaneously rather than juggling staggered expirations.
With monthly options, you may need to:
The most important takeaway: monthly options let you generate income from your shares even when life demands your attention elsewhere. Your $22,200 position continues producing cash flow without requiring daily management.
Whether you're running weekly options or monthly positions, accurate cost basis tracking is essential for selecting appropriate strike prices and evaluating your overall profitability.
MyATMM handles the complex calculations automatically:
When you're switching between weekly and monthly strategies, MyATMM maintains accurate records regardless of your expiration timeline. You'll always know your true cost basis, total premium collected, and net position—critical information for making informed trading decisions.
Stop guessing at your cost basis. Know exactly where you stand on every position.
Create Your Free Account Track up to 3 tickers free forever. No credit card required.Options trading involves significant risk and is not suitable for all investors. Selling covered calls caps your upside potential, and selling cash-secured puts requires sufficient capital to purchase shares if assigned. Past performance does not guarantee future results. The examples in this article are for educational purposes only and should not be considered financial advice. Market conditions change, and strategies that worked historically may not work in the future. Always consult with a qualified financial advisor before implementing any options strategy. Never trade with money you cannot afford to lose.